The Birmingham age-herald., 1913-04-23
Bill Provides for Radical
Readjustment of Entire
Fiscal Policy of
the Nation
REPORT SUBMITTED
BEFORE THE HOUSE
BY o. w. UNDERWOOD
HChairman Of Ways and Means Com.
mittee Outlines Operations of Pro-
posed Income Tax-Tariff
Revision Would Promote
Honest Competition

Washington. April q. Senate not in
session: meet Thursday.
Bank and currency committee met
and was advised by Chairman Owen
of result of his conference with Presi-
dent Wilson on currency reform.
Finance committee decided to grant
no oral hearings on tariff bill, except
to senator's on sugar and WOOL
HOUSE.
Met at noon.
Tariff bill reported by ways and
means committee with extensive re-
port recommending radical readjust-
ment of entire fiscal policy.
Representative Gallagher introduced
resolution for inquiry into alleged
baseball trust.
Special committee began inquiry of
assault upon Representative Sims by
local financier
House passed sundry civil bill CON
tanning provision 10 prevent use Of
funds appropriated In prosecution of
labor unions and farmers organiza-
ton.
Indiana appropriation bill passed.
washington, April REPRESENTING the
completed democratic tariff revision bill
10 the House today, the democrats OF
the ways and means committee recon-
niended a radical readjustment of the
entire fiscal policy Of the nation.
They proposed to make an income tax
the means of accurately adjusting the
funds to be raised by taxation to corre-
spond with necessities for government
expenditures.
The report submitted by Chairman I'm
derwood. after outlining the operations
OF the proposed income tax, said:
THE revenues from all income taxes
readily respond to changes of rates and
the latter can be raised or lowered with
in few days time without business
disturbances such as general tariff
changes occasion. 1t is believed that a
budget or other effective system by which
Congress may be able closely to calcu-
late and determine in advance forth
coming changes would be beneficial in
adjusting the balance between expedi-
lures and revenues, such as is in vogue
in most other civilized countries. With
other sources of revenue revised to an
honest and fixed basis, and the income
tax a permanent part of our revenue sys-
tenn, and at all times affording sub
stantial amount of revenue, Congress
could, and, II necessary. should annually
raise or lower the income tax rates as
would prevent either a deficit or surplus
in the treasury. This combined tax sys-
tenn would afford justice in taxation,
fexibility and stability of rigid economy"
Disregard Production Theory
An absolute disregard for the cost of
production theory as regulatory of tariff
rates would be set aside. says the re-
port and adds:
ITO eliminate duties which enable in
dustrial managers to exact bonus for
which no equivalent is rendered would be
had. To introduce In every line of in
dustry a comparatively competent tariff
lasis Is the end sought that no concern
shall be able to feel that it has monop-
oily of the home market gained, other
than through the fact that it is able
to further furnish better goods at lower
prices than others
(which Is the wiser course OF our gov
ernment to take?' the report continues.
The one that demands the protection
of profits, the continued policy of hot
house growth of our industries: the stag
nation of development that follows where
competition ceases, or. on the other hand
the gradual and insistent reduction of
our. tariff laws to a basis where the
American manufacturer must meet hon.
est competition where he must develop
his business along the best and most
economical lines? Where, when he fights
at home to control his market, he is
forging the way in the development of
-