The citizen-Republican. (Scotland, Bon Homme County, S.D.) 1???-19??, 1912-03-07
SUGAR Bill GIVES
SHOCK TO CHIEFS;
IS AN INCOME TAX
Some Of the Insurgents Expect
ed to Vote for Measure,
Which Was Adopted
in Majority Caucus.

Washington. nifG1
Senate leaders OF all shades of political
belief CAV themselves over today to al
discussion of the sensational action OF
h House democratic caucus last night
indorsing what Is. in effect, an income
tax on all net incomes, including SAL
aries above 5000 "a year.
That the House will pass the measure
by a party vote within the next 10 days
or two weeks, was taken for granted.
Discussion, therefore. turned largely IN
the reception the bill would get In the
Senate. Its fate there seems doubtful.
The plans of the House leaders had
not been wholly disclosed s3day. but 1t
was apparent that Che bill to extend the
excise tax law now relating to corpora
tons so as to include co-partnerships
and individuals, was to be urged upon
the House ahead of the bill to put sugar
on the free list. The latter bill Will
of course share in the ebate of the SO
called income tax. for it vas to make
up the deficit Of more h $50.000.000
to be lost In customs revenue on sugar,
that h new taxing measure was de-z
leaders want
to be sure that the deficit will be pro-
yided for before the duty is removed.
Jolt for Republicans.
The new plan OF the democrats tool
their republican colleagues entirely by
surprise. Many of them had not re-
covered sufficiently today to be willing
to talk for publication. Everybody
agreed that the debates in the House
and Senate on SO radical q change in
the method Of raising government rev.
enues would be the stormiest of recent
years.
The constitutionalfty of the new plan,
1t was said, would be attacked by some
representatives and senators, although
the democratic leaders In the House
claim the measure has been SO drawn
as to comply with the decision of the
United States supreme court, upholding
the corporation tax law. That decision,
1t was pointed out. held that the Cor
poration tax was not a tax on a fran
chise, but on the privilege of doing
working for a salary Is just as much a
manner of doing business as investing
money in an enterprise
Smoot Is Hostile.
In the Senate, 1t is said that In all
probability party alignments will be
broken, although party leaders make
no c concession publicly. Senator
Smoot, of Utah. a member of the Sem
ate finance committee, which will deal
with the bill. declared there was no
possibility of the measure passing the
Senate.
Il do not believe" he said, that any
republican senator, regular or insur-
gent, or that many democrats will
stand for this measure that would de-
stroy a great industry. The income
tax proposition is absolutely u~nconsti-2
t%utional. To call it an excise tax in
stead of an income tax that has al
ready been declared unconstitutional is
simply quibbling on words. 1t Is an
income tax, pure and simple
Senator Kern, OF Indiana, who was
democratic candidate for vice president
in the last national campaign, said the
measure was a good one.
Views of Democrats.
II am and always nave beer in favor
of an income tax" he said. 81 also
am in favor of free sugar"
THE measure is eminently wise and
ought to pass" said Senator Martin, of
Virginia, democratic leader in the Sen
ate. There is no doubt in my mind as
to it's constitutionality.
Senator PoindeXter, of Washington.
progressive republican, said:
II am very much in favor of an in
come tax. l nave been favoring it for
years"
Senator McCumber, Of North Dako
ia, a member of the Senate finance
committee, expressed doubt IL any
change would be made in the existing
law.
PERSONALLY" he added, II I'M in
clined to think that congress a the
power to levy such a AK"
Senator Bacon, Of Georgia, who did
not attempt to speak for his party, as
he had no opportunity to talk with any
senators regarding the bill. predicted
that If the bill passed the House, 1t
would find Sufficient support in the
Senate"