The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1912-03-06
TARIFF FOR REVENUE.
UNDERWOOD PLAN WOULD RE-
DUCE TAX ON SUGAR.
RRti6ed by Caucus Practically
Amounts TO PrOpOrtiOnate Levy on
Larger Incomes.

ing s5S .0O0. 900 in annual customs
revenue, and another to extend the
present corporation tax to include in
.dividuals and copartnerships doing
business of $1,000 a year or over
were ratified tonight by the Demo-
cratic caucus of the house.
The excise tax, socalled by the ways
and means committee. is in effect an
income tax The bill is so drawn
that il is expected to comply with the
supreme courts decision against the
constitutionality of an income tax. It's
effect would be tax every person who
earns more than $4,000 year on the
excess of $1,000 at the rate Of per
cent.
The estimate of Chairman Under
wood and members Of the ways and
means committee is that the proposed
excise tax would bring in a revenue
of between s5O.000.OoO and 100000
600 year. Placing sugar on the free
list. the Democratic leaders estimate
will reduce the price Of sugar to the
consumer about a cent and half
pound.
The secret that members OF the
WAYS and means committee had been
so closely guarding for several days
was the provision to extend the cor
poration tax.
In the caucus that bill was not Sc
riously opposed.
The free sugar DILL, however. was
bitterly assailed by representatives
from Louisiana, the cane sugar state
and representatives from sugar beet
growing States who were absolved
from the bond of the caucus. No roll
call on the ratification Of the bills was
demanded.
Mr.. Underwood announced that the
bills would he reported to the house
In few days.
I'VE simply took the corporation
tax law and rewrote ii to include in
.dividuals in the copartnerships,' said
Mr.. Underwood tonight. 1.-The bill, to
illustrate. simply means that ]. whose
business is that Of a member OF con-
gress, will pay to the government 1
per cent of my salary income over
$4,000 The salary of a congressman
L. $500. would therefor pay an
excise tax Of S25 year"
The president of the United states
should tbe proposed~biI become a law
would -ay Der cent on $4,000 or
Sg00. his salary being $4,000,
When the caucus met Chairman
Underwood made a statement that he
had been directed by the ways and
means committee to submit bill to
place sugar on the free list and an
other bill extending the present ex-
else tax, now levied by law on cor
porations, to individuals and copart-
more than $4,000 year.
"The bill removing the taxes levied
to the consumer about 1 1-2 cents a
ported into this country will have the
effect Of reducing the price OF sugar
to the consumer about 1-2 cents
pound" said Mr.. Underwood.
The statement further says that in
the opinion Of the ways and means
committee the large profits made by
manufacturers and refners of sugar
have been due to the customs tariff
and that while placing sugar on the
free list would reduce the profit, 1t
would not destroy but would result in
a saving TO the American people of
$4,000. 900.
"The purpose of the excise bill
presented to the caucus" Mr.. Under
wood said, 'is to extend the tax on
doing of business by individuals and
copartnerships. This special tax will
accomplish the same result as would
have been accomplished by an in
come tax II it were within the power
Of congress to enact an income tax
law so far as raising revenue Is con-
cerned, but, at the same time, the
bill keeps we'll within the principles
laid down by the supreme court in
it's decision affecting the constitu-
tionality Of the corporation tax law.
"The bill does not in any way alter,
amend or repeal the corporation tax
law as T. now stands on the statute
books. but provides that every per
son. firm or copartnership shall be
liable 10 pay a special excise tax
equal TO one per centum on the en-
tire net income over and above $4,000