Daily capital journal. (Salem, Oregon) 1903-1919, 1913-04-21
A COMPETITIVE TARIFF.
New York Times April s.)

NNeW 1Orh AleS Aprll ..
The proposed rates of the Democratic
tariff bill will transfer from the con-
smers of the country, that is from all
the people of the country, taxes contrib
uting ss0,0O0,0OO annually to the cost
Of the government, and will lay new
taxes upon the comparatively small
number of the persons in receipt of in
comes exceeding $4,000 a year. This is
taxing the few for the benefit of the
many; the protective duties of the pres.
ent tariff tax the many for the benefit
of the few. The Mckinley tariff, the
Dingley tariff, and the Payne-Aldrieh
tariff tended to the redistribution of
wealth, but in the wrong direction. 1t
is proposed in the Underwood tariff to
make the redistribution work the other
way.
There can be not the slightest doubt
about the intention of the trainers of
the bill-they avow it. Chairman I'm
derwood frankly says that in imposing
the tax on incomes "the attempt has
been made to provide not only source
of revenue, but also means of redress
ing in some measure the unequal tax
burdens which result from the practice
of basing the federal income entirely
upon customs and internal revenue du.
ties This is system of taxation which
inevitably throws the burden of sup
porting the government upon the shoul-
ders of the consumer" Where the
burden of supporting the government
should be placed, or where on earth it
can be placed, except upon the shoul.
ders of the consumers is a question we
should like to see answered. Mr.. I'm
derwOOd and his associates have doubt
less persuaded themselves that they are
placing the burden elsewhere, and it is
perfectly true that an income tax is less
likely than any other to be shifted. In
most cases the transfer is impossible
but Mr.. Underwood deludes himself
when he advances the theory that men
of larger income consume in proportion
to their income a far smaller aggregate
Of tariff-taxed necessaries of life thar
the small income earners. AS our tar
ifs have been drawn that is measurably
true Of some articles, it is true of mul'
ti.millionaires, as a general statement
it is highly disputable. But the Demo
Gratis have gone about their task, not
merely with the purpose of raising rev
enue for the support of the government
but with the additional purpose of pro
noting social welfare. That, it will be
remembered, was a theory of its duty
held by the interstate commerce com
mission in the matter Of fixing railroad
rates.
Unmistakably, it is a downward re-
vision bill. In that respect the Demo
Gratis have kept faith with the people
The reductions are substantial, and
there has evidently been a diligent eff,
fort to apply them to the articles Of
common consumption, thus affOrding
the largest measure Of relief. The new
wool schedule will bear slight resem'
blance to the indefensible schedule K
of the Payne.Aldrich tariff. Raw wool
is made free of duty, This is in accord
with Mr.. Cleveland s principle of free
raw materials, It has generally been
held that to meddle with the wool duty
invites political disaster, but we can
hardly expect that Texas viii go Repub-
lican because Of free wool. Demonstra.
bly,, the business Of wool growing in
this country is affected by other influ.