The Daily Missoulian. [volume] (Missoula, Mont.) 1904-1961, 1912-03-02
UNDERWOOD HhS A BILL TO DO
AWAY WITH ALA coLLEc.
TloNs AT PORTS.
HOPES FOR BIG SAVING
Reduction Of $52,0oo,ooo in Revenue
Thus Made Would Be More Than
Made Up by enforcement Of Spe.
ciai Excise Bill to Be Proposed, Hav.
ing Effect Of Income Tax.

Washington, March IA bill to put
sugar on the free list, eliminating s5a. !
100000 in all customs revenue. and an
other to extend the present corporation
tax to include individuals and co-part-
nerships having an income of $1,000 A
year or over, were ratified tonight by
the democratic caucus OF the house.
The excise tax, so called by the ways
and means committee. Is In effect an
income tax. The bill is so drawn that
1t Is expected to comply with the su-
preme courts decision against the con-
stitutionality Of an income tax It's
effect would be to tax every person
ns,ho earns $4,000 or more year at the
rate of one per cent
Chairman Underwood estimates that
the proposed excise tax will bring in
a revenue of between $50.000.000 and
$60,000,000 a year. Placing sugar on
the free list, the democratic leaders
estimate, will reduce the price of sugar
to the consumer about one cent and n
half a pound. The secret that mem
bers of the ways and means committee
had been so carefully guarding for
several weeks was the provision to ex-
tend the corporation tax.
In the caucus the bill was not OPP
posed seriously. The free sugar bill,
however was assailed by representa-
tives from Louisiana, the cane sugar
state. and representatives from sugar
beet growing states. No roll call on
the ratification OF the bills was de-
manded.
Majority Leader Underwood an
nounced that the bills would be re-
ported to the house In a few days.
The president of the United States,
should the proposed law be enacted,
would pay one per cent of $4,000 or
$500. his salary being $4,000.
Chairman Underwood made a state
ment to the caucus that he had been
directed by the ways and means com
mittee to submit a bill to place sugar
on the free list and another bill eX
tending the present excise tax now
levied on corporations to individuals
and co-partnerships having an annual
income of more than $4,000.
"The bill removing the taxes levied
at the customs houses on sugar i'm
ported into this country" said Mr.
Underwood, will have the effect of
reducing the price on sugar to the con-
sumer about one and half cents a
pound"
Would Cause Saving.
The statement further said that In
the opinion of the ways and means
committee. the large profits made by
manufacturers and refiners of sugar
had been due to the customs tariff and
that placing sugar on the free list
would reduce the profit but would not
destroy the industry I'm the United
States and would result In "A saving to
the American people of $107,000,000 a
year.
The purpose of the excise bill pre-
sented to the caucus Mr.. Underwood
said, "is to extend the tax to the bus
mess OF individuals and co-partner-
ships. The special tax will accomplish
the same result as would have been
accomplished by an income tax IL 1t
were within the power of congress to
enact an income tax law so far reach :
ing, but at the same time the bill keeps
well within the principles laid down by