The evening times. [volume] (Grand Forks, N.D.) 1906-1914, 1912-03-02

Gus would eliminate the much dis
cussed duties standard test and con.
tains the following provisions:
Sugar. tank bottoms. sirups OF cane
juice. melada. concentrated medala
concrete and concentrated molasses.
maple sugar. maple syrup. refined
syrups. glucose or grape sugar and
sugar cane shall be admitted free Of
duty.
"Saccharine sixty-f1ve cents per
pound duty.
Sugar candy and all confectionery
not specially provided for in this act
or in the first section Of the act cited
TOT amendment. valued at fifteen cents
per pound or less and sugars after be-
Ing refined. when tinctured. colorcd,
or IN any way adulterated, two cents
per pound; valued at more than f1f-
teen cents per pound. twenty-five per
centum ad valorem. The weight and
the value Of the immediate coverings
otner than the outer packing case or
otner coverings shall be included in
the dutiable weight and the value Of
the merchandise"
Chairman Underwood's statement
then continues:
The removal Of all taxes at the
custom houses will, of course, reduce
the revenue that the government
needs by fifty two million dollars and
u was necessary for the committee
on ways and means to provide other
sources of revenue to take the place of
the loss from the removal of the taxes
on sugar. To accomplish this result
the ways and means committee deter
mined to present to the caucus a bill
extending the present excise tax on
corporations to individuals and CO.
partnerships.
Supreme Court Decision,
me supreme court notwithstand-
ing Its former decision holding that an
income tax was was unconstitutional,
mas maintained the constitutionality Of
an excise tax levied on all corporations
s1g aolng business in the United States.
me supreme court has decided that
the congress has the power to levy q
special excise tax on the doing OF a
particular business whether that bust
ness Is conducted by an individual or
corporation and in the case of Flint
VS.. ine Stone Tracy company. In
which they held that the corporation
tax was constitutional. they decided
.nat the congress had the power to
ieSy special excise tax on the doing
OF al business by corporations
ihe purpose of the bill presented
TO the caucus Is to extend the tax on
DONG OF business by individuals and
co-partnerships. The special execise
tax Will accomplish the same result
as would have been accomplished by
an income tax II 1t were within the
power OF congress to enact an income
tax In so far as raising the revenue
Is concerned. but at the same time the
piii Keeps we'll within the principles
laid down by the supreme court in it's
decision Affirming the constitutionality
OF the corporation tax law.
under the present law persons who
nave their money invested in corpora
tions that are employing labor and de.
veloping the country are taxed one per
centum on the net earnings of the
corporations.
why Is 1t not AS equitable and just
to impose a similar tax on individuals
whose money Is invested in lines of
tions?
under the present law the stock
holder In corporation Is compelled
10 pay a tax; the bond holder who as
a rule takes little or no risk in the
business is not taxed. II the bill be-
comes law the bondholder can be
taxed on the same basis as a stock
noider. The levy of this tax is not ex-
cessive; man having an income OF
Slo,OoO would pay no tax on the flrst
$4,000 and on the second IS. 900 would
pay only $50 year. and yet from
the estimates made we feel assured
that the levying of this tax will nro-
duce a revenue for the government
that will equal that lost by the reneaI
OF the tax on sugar.
ine present corporation tax raised
about s30,000.000 and IL the speciaI
excise tax on individuals raises $50.
goo, 900 more it will only place di-
rect burden on the wealth of the
n
pared with seven or eight hundred
million dollars that we must raise to
support the government. AS the
wealth of the country receives great
benefits from the maintenance of the
government. it is not believed that the
collection Of this amount Of taxes from
this source will be regarded as un-
just.
There has been universal and
general demand coming from ali parts
OF the United States for free sugar.
that the high cost of living may be re-
duced to some extent. The removal of
this tax will bring relief to all, no
matter how humble, no matter how
poor and the burden will be shifted
TO those who are possessed of more
than comfortable fortunes and can
bear the additional tax without seri-
Gus Inconvenience"
VI sA'C SpcSIdi PROVISIONS OF
the income tax or excise bill provide
that in computing incomes. expenses
actually incurred in carrying on
business not including personal living
or family expenses shall he deducted,
as shall interest on indebtedness.
National. state, school and n,lnici-
pal taxes. not including those assessed
against local benefits shall be de-
Quoted from the profits on incomes of
the persons who actually paid them.
Losses by fire. shipwreck. storm, etc.
not compensated by Insurance and
worthless debts are to be exempt.
The term business as employed in
the act is held to embrace everything
about which a person can be employed
and all activities which occupy time.
attention and labor of persons for live.
lihood or profit.
The word person" is held to in
clude natural persons or individuals or
firms or partnerships.
One provision is drawn to eliminate
salaried men who contribute to the
taxed income Of firms or companies.
Another provision would direct all
paymasters and dishursing officers Of
the United States to deduct the tax
from payments to government en-
ployes.