Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1912-03-02
TO SUPPORT INCOME
TAX ON SALARIES OF 5000
AND UPWARDS sTARrLEs.
COMPANION MEASURE TO
REMOVAL OF SUGAR DUTY
House Democrats in Caucus Formu-
late Plan to Maintain Revenues by
Removal Of Tariff-1o Be Passed by
House on Strict Party Vots-Fate in
Senate Uncertain.

Washington, March 2.-House and
senate leaders of all shades of political
belief gave themselves over today to q
discussion Of the sensational action Of
the house democratic caucus last Eight
in endorsing what is In effect an in
come tax on all net incomes, including
salaries above $4,000 year.
That the house will pass the meas
ure by party vote within the next
ten days or two weeks was taken fer
granted. Discussion therefore turned
largely to the reception the bill would
ges in the senate Its fate there seems
doubtful
The plan Of the house leaders had
not been wholly disclosed today hut
it was apparent that the bill to entend
the excise law now relating to corpora
tions SO as to include partnerships
was to be urged upon the house ahead
of the bill to put sugar on the free
list. The latter bin will Of course share
In the debate on the so-called income
tax, for it was to make up the deficit
of more than $50,00O,00O to be lost in
customs revenues on sugar that the
new taxing bill was devised. The den,-
ocrats want to make sure that the new
deficit measure is provided before the
duty is removed.
Republicans Surprised.
The new democratic plan took ,hcir
republican colleagues by surprise
ficiently today to be willing to talk
the debates In the house and senate OH
the radical changes in methods to raise
government reevnues would be the
storlniest IN recent years. Il The consti-
tutionaaity Of. the new plan, ut was
said. would be attacked by some repre-
sentatives and senatorA altfo the DEM
ocratic leaders in the house claim the
measure has been 50 drawn as TO com
ply with the supreme court lewiston
upholding the corporation tax law.
That decision, it was pointed out, held
that the corporation tax was not a tax
on franchise but on the privilege o.:
doing business. The new bill holds that
working for salary is just as much
matter of doing business as Investing
money in an enterprise.
In the senate. it is said. that in all
PROBABILITY party alignments will be
broken altho party leaders make no
sucn concession publicly.
The Two Measures.
The democrats Of the house, in eau
Gus last night, ratified two bills which
would be of great financial import
ance to the nation if enacted into laws.
The bills were reported by the house
ways and means committee. They are:
a bill to put sugar on the free list.
This bill, it is claimed, would elimi-
nate 353.00o,0o0 a year in customs rev.
enues, but would reduce the price OF
sugar to the consumer. a cent and a
half a pound.
An excise tax bill, which is, in ef-
feet. an income tax measure. 1t would
tax every person VINO earns more ,ilsn
$4,000 year at The rate Of per cent
on the excess. This bill merely ex-
tends the present corporation tax to
include individuals and co-par:ner-
ships and is so drawn that 1t is OK
rected to comply with the supreme
courts recent decision against the con-
of an income tax. It is
expected that it would bring in rev.
enue Of between $4,000, 900 and $780,
100000 a year.
The free sugar bill was bitterly as
sailed by representatives from Louisi-
ana and representatives. from sugar
beet growing states. who were absolvea
from the bond Of the caucus. No roll
call on the ratification Of the bills was
Majority Leader Underwood an
that the bills would be re-
ported to the house in asfew days.
Chairman Underwood made a state
ment to the caucus that he had been
directed by the ways md means COM
mittee to submit both hills.
The statement said that. in the opin-
lon OF the ways and means commit
lee. the large profits made by manu-
lecturers and :eincrs Of sugar have
been due to the customs tariff. and
that placing sugar on the free list
would reduce the profit, would not de-
stroy the industry in the United States,
nut would result In saving to the
a n, erlcan people Of 3107.000.0O0.