The Hawaiian gazette., 1913-02-21
NOW DRAF TING
INCOME TAX BILL
Ways and Means Committee Is
Making Clear Path for Cuts
in Protection Tariff.

Tho Washington correspondent of the
Louisiana Planter under date of Fob
ruary 3, says:
The hearings on the various tariff
schedules were concluded ON Saturday
last and the committee on ways and
means is now working behind closed
doors, going over the vast amount of
testimony submitted, with a view of
drafting the report to be presented to
the Democratic caucus which will be
called immediately upon the converting
of the special session of congre s. OF
course, the Democratic members of the
committee only are present in the
secret conferences, and while no news
of the action of the maj rity membe 5
of the committee is given to the press,
| it is known that there is division of
OPP Mon as to whether an omnibus bill
will be presented, or whether the meas.
ure will be taken up schedule by SEIZED.
ule.
| Democrats generally are in favor of
the omnibus bill, believing that this
method would expedite consideration of
the question on the floor of the house.
| Besides this, they believe that such q
measure would stand better chance
of passing as recommended by the ways
and means committee. They argue
that if schedule by schedule program
is adopted, II will give tho opponents
of each particular schedule an oppor.
tunity to concentrate Their fight while
under general bill, the opportunity
would not be so favorable
No Minority Report.
II is the intention Of the Republican
members of the committee not to sub.
nit minority report They claim
that the Democrats have taken the tar.
| if question out of their hands, and
that the latter are responsible for the
results following the passage of n re.
vision bill In any event, they figure
that the fling of a minority report
would be of no avail, as the Democratic
house will undoubtedly pass any meas
IRE that the Democrats of the ways
and means committee recommend.
1t is anticipated that the revision
measure will be rendy by March Is and
it is predicted that the extra session
will be called for that date. The date
of final adjournment, however. is not
such an easy matter to predict. The
conoensus of opinion is that it will he
August or September before the mqtter
WI be settled this providing Presi-
dent-elect Wilson does not recommend
other measures to he taken up at the
special session. Upon this point he
is non-committal and so the gentlemen
on the Hill are in the dark as to when
they will get back home.
Income Tax Bill.
According to the figures of the ways
and means committee, between 1925,
: 100000 and $350,O0O,0OO will have to
be raised by the tariff legislation Of the
next congress. The Democratic mem
hers of the committee are jubilInt over
the fact that the requisite number OF
States have ratified the proposed
amendment to the Constitution pIovid-
ng Tor an income tax. They feel now
that they can cut the rates with less
trepidity for it is estimated that this
: measure alone will produce over $780,
100000 in revenues. r
, To Representative Hull, of Tennes
see, a member of the ways and means
committee, has been delegated the task
uf preparing the first draft of the new
legislation. While no decision hal
been reached as to the rates for in
that the new law will be written on tn,
/ asis of the excise tax, providing fol
payment to the general government o.
one per cent of all net incomes abov'
$4,000.
The Democrats in the house are thor
oughly convinced, they say, that the in
come tax n ensure will mean the enc
of high protective tariff. They CLAIM
that it will eliminate the argument il
favor of the tar # as necessary reye
nue. producer, and that in the futur
it viii be an easy matter for congres
TO increase or decrease the income ia:
by fraction of one per cent accord
no. as the government needs NOR
money or less. This reasoning fulfill
the prediction made by your CORES
oondent months ago, that tie graves
longer to the home sug'r industry an
';indred lines of business, lay in tn
passage Of an income tax measure, an
'omestic sugar producers will hav
wen more bitter fight in the futur
han they have in the past to proven
he destruction of the industry.