The evening times. [volume] (Grand Forks, N.D.) 1906-1914, 1912-03-02
SUGAR PLACED
ON THE FREE LIST
House Democrats Caucus
Ratified the Work of the
the Committee

Washington. March 2.-The DEM
ocrattc caucus last night ratified the
sugar bill and the income tax or ex-
else bill presented late yesterday by
Democratic Leader Underwood with
the endorsement OF the ways and
means committee. Both bills will now
bep resented to the house.
1t was proposed that the present
corporation tax be extended to include
individuals and co-partnershipS do
ing business of $4,000 a year or
over"
Mr.. Underwood stated that this
practically would accomplish the pur-
poses Of an income tax and at the
same time comply with the supreme
tionality Of an income tax. The pro-
posed tax would be one per cent.
Chairman Underwood made state
ment to the caucus that he had been
directed by the ways and means COM
mittee to submit bill to place sugar
on the free list and another bill ex-
telding the present excise tax now
levied BY law on corporations to in
dividuals and co-partnerships having
an annual income of more than 5000
year.
THE bill removing the taxes levied
at the customs houses on sugar." said
Mr. Underwood. Imported into this
country will have the effect Of reduc-
ing the price of sugar to the consum-
er about l lie cents a pound"
The statement further says that in
EeeMmittee the large profits made by
manufacturers and refiners Of sugar
have been due to the customs tariff
ana that placing sugar on the free list
would reduce the profit and would not
destroy the industry in the United
States but would result in a saving TO
the American people of 100000, 900.
The purpose Of the excise bill pre-
sented to the caucus" MIR. Underwood
said. rs to extend the tax on doing of
business by individuals and co-part-
nershtp. The special tax will accom-
plfsh the same results as would have
been accomplished by an income tax
II 1t were within the power of congress
to enact an income tax law so far as
raising revenue is concerned: but at
the same time the bill keeps well
supreme court in its decision affirming
the constitutionality of the corpora
ton tax law.
The bill does not in any way alter.
amend or repeal the corporation tax
law as 1t now stands on the statute
books. but provides that every person.
iirm or co-partnership shall be sub
1ect to pay annually q special excise
tax with respect to carrying on or do
ing business by such persons. equi-
valent to one per cent on the entire
net income over and above $4,000
received by such person from all
sources during each year and further
provides that in computing the in
come OF any person there shall not
be included the amount received from
any corporation. joint stock company
or association. or insurance company
II the special excise tax of one per
cent not imposed by law has been paid
by such corporation or stock company
or insurance company or association
I'm other words the income derived
from dividends of a corporation on
which the tax is now levied by law
Will not be subject to further or ad-
dittonal tax hut incomes derived from
other sources of business than those
named In the corporation tax act will
be subject to tax Of one per cent
where the net income exceeds $4,000
annually"
Hope for Relief.
The statement further says:
THAT IL these bills become laws
they will have repealed a burden Of
taxation now borne by the American
people ma food product that all must
consume Of $107.000.0O0 and will have
substituted in place thereof taxes that
probably will aggregate between $780,
100000 and $60.O00.00O that will be
collected from persons at an income
Of more than $500"
The sugar bill submitted To the cau.