Arizona republican., 1913-06-25
Under New Plan the Pro posed Law Would Apply to Individual Incomes Over 5000 But Makes Important Exceptions.
PRESIDENT MAY
 INCREASE TARIFF
Democrats of Committee Make It Clear That Further Changes Will Be Made In Administration Features.
PRESS DISPATCH

ASSOCIATED PRESS DISPATCH i WASHINGTON, June 24-Radical changes in the income tax plan of the Underwood tariff bill and an al- teratiOn of the administrative fea- lures of the measure to overcome most of the objections raised by for eign governments, was agreed upon in tentative way today by the de- mocratic members of the senate fi- nance committed
 The income tax, under the new plan, would apply to individual in- comes over $3O00; but would make important exemptions in cases of in dividuals, municipalities, civic bodies and mutual insurance companies, un- der certain restrictions.
 The changes in the administrative sections includes a new provision giving the president authority to in crease the tariff duties against cer- tain articles coming from countries which discriminate against the United States
 The proposed five per cent conces- son of tariff on goods brought in American ships; the anti-dumping clause; and a provision giving the United States authorities, 'inquistitor iaI powers to examine the books of foreign manufacturers when the valuation of goods is in dispute was stricken out.
 l Democrats of the committee made it clear today that some further changes might be made in the in come tax and the administrative sec ton before they reported to the sen ate caucus, but the revised sections as made public today are expected to stand with but little alteration
 
 1 Senate democrats in caucus on the bill spent the entire day on wool and sugar. Just before the adjournment tonight, Chairman Simmons of the finance committee secured an agree ment for vote on both not later than four tomorrow. No amendment to the free wool provision is offered but the majority of the senators will have an opportunity to express their opinions on the two sugar amend ments. Senator ShaffrOth offered one to fix the rate at the end of three years at about half a cent per pound instead of the free list provision now in the bill. Senator Thornton offered a second amendment to pro vide that the rates remain as they are in the Payne-Aldrich act. : It is regarded as probable tonight that the anti-free sugar men will get together tomorrow before the vote is taken to decide to concen- trate their support behind one amend ment if the other is beaten. The leaders of the majority are confident despite the oratory against free su- gar that it will be retained in the bill and only two Louisiana senators will oppose it when the measure reaches the senate.
 Under the proposed new for of income tax, an additional exemption of a thousand would be allowed to married men or to married women with dependent wives or husbands so as not to be taxable under thls law and five hundred will be added for each dependent child living with and dependent upon the taxable par emf Tn the case that both parents are taxable however, no exemption for the children would apply. Other important changes m the nlan include on that portion of prem inns collected by mutual life or ma rine insurance companies which may he returned to the policyholders m the form of dividends. Taxation or this nortion of their income has been bitterly opposed by the insurance companies The Underwood bill eN- empted only the mutual lire lnsur- apce companies on this DdSlo The administration currency Dill IS to undergo some important changes t before it is pushed for acton III , either house or the senate, although inc measure will be introduced 10 both houses in virtually the same form as was recently made pupilc bv Representative Glass.
 r A provision for the retirement oh { national bank notes and the re1uho- ! ing of two per cent goVefhfleiic bonds with per cent issue Wili he put back into the measure later; if is understood, with the consent oi inc administration. This proVlsloh $ was in the bill before the final con ference at the White House but was taken out because ,f the oPpo9i''0" $ of Secretary Bryan and others. : Nuch criticism against the liea- l sure among the members or pot" honses has been directed at the pro nosal to create a new kind of paper 9 currency without withdrawing thF ' national bank notes or proNlolns
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