The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1913-04-22
INCOME TAX To
MEET EXPENSES
Democrats Propose to Change
Fiscal Policy of Nation.
Funds Will Be Raised to Care
for Expenditures.
CONGRESS MAY ADOPT BUDGET
Revenue From Incomes Would
Be Raised and Lowered.
To Prevent Deficit or Surplus
in Treasury.
CUT HIGH COST OF LIVING
New Tariff Bill VIII Benefit
the Consumer.
Complete Revision Explained
in General by Committee.
Revenue From Incomes Would
Be Raised and Lowered.
To Prevent Deficit or Surplus
in Treasury.
CUT HIGH COST OF LIVING
New Tariff Bill VIII Benefit
the Consumer.
Complete Revision Explained
in General by Committee.

Washington. April 22.-Presenting the
completed Democratic tariff revision
bill to the house today, the Democrats
of the ways and means committee rec
commended 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 COR
respond with necessities for govern
ment expenditure. The report, sub
mitted by Chairman Underwood, after
outlining the operations of the pro-
posed income tax, said:
1.-THE revenues from all income taxes
readily respond to changes of rates
and the latter can be raised or lower
ed within a few days time without
business disturbances s. IN as general
tariff changes occasion. It is believed
that a budget or other effective syS-
tenn by which congress may be able
closely to calculate and determine in
advance forthcoming expenditures will
soon be devised, in which event it
should become easy to maintain close
balance between expenditures and rev.
enues such as is practiced in most
other civilized countries.
with other sources of revenue re-
vised to honest and fixed basis, and
the income tax a permanent part of our
revenue system and at all times afford
ing a substantial amount of revenue
congress could, and if necessary should
annually raise or lower the income
tax rates in such manner as would pre-
vent either a deficit or a surplus in
the treasury. This combined tax sys-
tenn would afford justice in taxation.
fexibility and stability of revenue, and
rigid economy in expenditures"
Policy of Democrats.
re i11in hafr
in the preparation of the bill announc-
ed an absolute disregard for the cost
of production theory as regulatory OF
tariff rates, and declared that in the
pending bill they had attempted:
ITO eliminate protection of profits
and to cut off duties which enabled in
dustrial managers to exact a bonus
for which no equivalent is rendered
ITO introduce in every line of in
dustry a competitive tariff basis pro-
viding for a substantial amount of i'm
portation to the end that no concern
shall be able to feel that it has a
monopoly of the home market gained
other than through the fact that il is
able to furnish better goods at lower
prices than others
(which is the wiser course for our
to take" the report asked,
1.-THE one that demands the protection
of profits, the continued policy of hot
house growth of our industries-the
stagnation of development that follows
where competition ceases, or on the
other hand the reduction of our tariff
laws to a basis where the American
must meet honest COM
petition, where he must develop his
business along the best and most eco
nomical lines; where, when he fights
at home to control his market he is
forging the way in the development
of his business to extend his trade in
the markets of the world. In our judg-
ment the future growth of our great
lies beyond the seas"
Revenue Decreases.
A detailed table was presented show
ing, by schedules, the total revenue
secured under the Payne law for 1912,
and the estimated revenue under the
new law for a twelve month period.
The table showed that in 1912 $759 209,-
915 worth of imports paid 1904, $50. OBS in
duties at an equivalent average ad
rate of 40.12 per cent. 1t is es-
timated that under the new bill 81 ,000,-
999, 900 worth of imports would pay
1856, ,701, 900 in duties at an average ad
rate of 1880 per cent. Thus
the new bill would raise $37 1896 900 less
than the present law.