Milford chronicle., 1912-03-08
FOR FREE SUGAR
AND INCOME TAX
Democrats Approve Plan For
Raising Revenue.
TAX INCOMES OVER $4,000
Expect to Raise Nearly ssO,ooo,ooo to
Partly Make Up Loss From Sugar
Revenue.

The Democratic caucus ratified the
sugar bill and the income tax or excise
bill presented by Democratic Leader
Underwood, with the Endorsement Of
the ways and means committee. Both
bills will now be presented to the
house.
In reporting the free sugar bill to
the caucus, Chairman Underwood also
submitted a bill which in effect would
provide an income tax in the United
States.
1t was proposed that the present
corporation tax be extended to include
individuals and co-partnerships dong
a business of $4,000 a year or over
Mr.. Underwood stated that this prac-
tically would accomplish the purposes
OF an income tax, and at the same
time comply with the supreme court
decision against the constitutional ity
OF an income tax. The proposed tax
would be one per cent.
Chairman Underwood made a state
ment to the caucus that he had been
directed by the ways and means com
mittee 10 submit a bill to place sugar
on the free list and another bill ex-
tending the present excise tax, nov
levied by law on corporations, to indi-
viduals ard co-partnerships having an
annual income of more than $4,000 a
year.
In explaining the effect of the bill
Mr.. Underwood said:
"The bill removing the taxes levied
at the customs houses on sugar, I'M
ported into this country, will have the
effect OF reducing the price OF sugar
to the consumer about IL GEMS a
pound"
The statement further says that in
the opinion of the ways and means
committee the large profits made by
manufacturers and refiners of sugar
have been due to the customs tariff
and that placing sugar on the tree
list would not destroy the industry in
the United States, but would result in
a saving to the American people of
S1O7000,000.
"The purpose of the excise bill pre-
seuted to the caucus" Mr.. Underwood
said, lis to extend the tax on doing Of
business by individuals and co-part-
nerships." He then said:
"The special tax will accomplish
the same result as would have been
accomplished by an income tax if it
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 with |
in the principles laid down by the gu
preme court in its decisions affecting |
the constitutionality of the corpora !
tion tax law"
THE bill does not in any way alter, |
amend or repeal the corporation tax |
la was it now stands on the statute
books" Mr.. Underwood said, but pro |
vides that very person, firm or CO.
partnership she'll be subject to pay an |
nually a special excise tax with re
spect to car wing on or doing business |
by such persons, equivalent to one per
centum on he entire net income over
and above $4,000 received by such per
son from all sources during each year,
and further provides that in comput-
ing the income of any person there
shall not be included the amount re-
ceived from any corporation, joint
stock company or association, or in
company, if the special excise
tax of one percentum now imposed by
law has been paid by such corpora
tion, or stock company or insurance
ooy,,ropxr or aeeOoia fiou "