The Leon reporter. (Leon, Iowa) 1887-1930, 1912-03-28
OUR WASHINGTON LETTER.

(By> Charles H. Tavener, special
Washington correspondent OF The
Reporter.)
Washington, March 23.-ls it just
that the men who own 80 per cent
of the wealth of the United States
should shoulder but 10 per cent OF
the burden of taxation for running
the government?
The democratic house of represent
atives believes that it is not, and
hence the passage of the excise-in-
come tax bill which levies tax OF
I Der cent on incomes in excess OF
$1,000 year.
This does not mean that all per-
sons having more than $4,000 must
pay a tax on the excess OF that sum.
| 1t means that those who have an
annual income or profit" of more
than $4,000 must pay the l per cent
on the excess of $4,000. 1t will be
necessary for man to draw high
er salary than $4,000 year, or to
have a capitalized sum of about
100000 before he is called upon to
nay per cent on that portion in ex-
cess of $4,000.
This is class legislation, the stand
patters and protectionists say. They
were never heard to complain, how
ever of the existing class legislation
which permits the burden of federal
taxation to fall entirely upon the
shoulders of the masses, taxing the
average man, woman and child on
every stitch of clothing they wear
and everything else they must have
in order to live, while permitting all
forms of wealth to go untaxed.
The masses of the people produce
the wealth, and by legislative ad-
vantage a few get possession OF it.,
and now these few object to the
transfer to wealth of even the
amount OF revenue derived from the
taxation of sugar, but one of the
500 other things on which a tariff is
levied They would prefer that the
government continue to tax sugar
instead of wealth, because they eat
no more sugar than the section hand
or the mill worker and therefore UNI
der the present systems are compelled
to pay no greater tax to the federal
government than does the poorest
man. These facts may read strange,
but they are facts, anG will not be
contradicted.
The United States is practically
the only one of the great nations to-
day that raises practically all it's
revenue by taxing the people accord
ing to their needs and practically ac-
cording to their poverty, and allows
wealth to go untaxed, so far as the
raising of money to build battle
ships, maintain the army, and run
the government are concerned.
The government now raises 80 A.
100000 annually by placing an I'M
port duty or tariff on the things the
people eat, wear or use. Banks,
railroads and steamship lines pay
nothing to Uncle Sam because they
do not come through the customs
houses.
If a fiscal system which requires
a millionaire to pay no more tax to
the federal government than the sec
ton hand or the mill worker is fair
and Just, there is no need of reform;
but if such a system is unjust, the
excise-income tax is move in the
right direction to remedy it.
Ruined Again!
The sugar industry in the United
States. according to the wall going
up from protectionists, will be
ruined by the bill removing the
tax from sugar, reducing the price
to the consumer approximately q
cents a pound. This, then, will be
the fourth time the industry will
have been ruined according to pro-
tectionists-always according to pro-
tectionists.
The standpatters said the industry
would be ruined when Porto Rico
sugar was admitted free. But it
wasn't. Then they said it would
surely perish when Philippine sugar
was admitted free, and again when
Cuban sugar was admitted at a re-
duced import tax.
But during this time of ruin,
cane sugar production in this country
increased materially, and beet sugar
production more than doubled!
Where Underwood Stands.
Chairman Underwood of the Ways
and Means committee was interrupt
ed in his speech against the sugar
tax by a Louisiana member, who in
quired of Mr.. Underwood what he
anticipated would happen to the
sugar industry in Louisiana if the
tax was removed from sugar, Mr..
Underwood replied frankly that he
did not know what would happen to
the sugar industry of that state, but
hoped it would survive, as it had
done on previous occasions. He add
ed there was one thing he did know,
however, and that was that the total
production of sugar in Louisiana
was less than one-tenth of the entire
consumption in the United States,
and that he did not believe in the
principle of taxing 100000 Amer
lean citizens in order that a COM
parative few sugar producers might
make an extra profit.
The Price of Sugar.
The wholesale price of standard
granulated sugar in New York on the
day this item is written is 1886 per
hundred pounds. One week ago to-
day the price was $5.75, one month
ago. today $5.45 and one year ago,
$3.50. These figures are taken from
T.