The Washington times., 1913-02-04

The man who makes $500 per var
will soon have to 'divvy" with the Gov
ernment. The income tax law will get
him II he doesn't watch out.
Members of the Ways and Means
Committee, now engaged in slashing the
tariff at the House end of the Capitol,
believe they can raise s100. zoo. 900 annual
ly in revenue from an income tax. The
income tax law became a part of the
Democratic tariff revision plan today,
following the action of Wyoming, Della
ware, and New Mexico in ratifying the
income tax amendment to the Consti-
tuition.
Information that the thirty-sixth State
had ratified the amendment came to
House members yesterday afternoon.
Congressman Hull of Tennessee. the cor
poration and income tax expert on the
Ways and Means Committee. immedi-
stely, began to think about the sort of
bill the committee ought to bring out
to tax the fellow with the big salary.
Aids Common People.
During the extra session, an income
tax bill will be passed. 1t probably
will apply to everybody who makes
s.. coo per year and the exemption may
be placed as low as $500. Men who
We're born with a silver spoon in the
mouth and who own swollen fortunes
will be especially hard hit. and the
committee intends that a part of The
of Mr.. Common People, who makes
around $1,000 or 81. 200 per year.
Congressman Hull, who is going to
draft the income tax now made certain
BY the action Of the states. said re-
Gently:
direct taxation falls upon people hav-
ing incomes Of sl.2O0 to 5000 per year
and under.
1T is safe to say that seven-eights
of our customs taxes. amounting to
more than $500. c000 600 annually, are paid
by people whose income does not ex,
ceed 5000. Where would be the in
justice of requiring the more than $4,000
persons with incomes of 1880 and up
ward TO contribute sl5oOo,W0 to the
Governments revenue?"
The probabilities are, however, that
Congress will compromise on 100000 900
to S125, ,0o0, 600 in revenue and will place
the exemption figure at so,cco. -.
Easier For Democrats.
The ratification of the income tax
amendment by three-fourths of the
States makes things easier for the
Democratic members Of the Ways and
Means Committee, who are engaged
in framing a tariff bill which viii
lower duties and vet provide the nee
eSsary revenues of the Government.
Cuts in the tariff may now be made
with the knowledge that one great
revenue producer-the income tax
is a certainty.
A full -fledged income tax law prob
ably will sapplant the existing excise
H. \.
tend its provisions The latter meas
ure passed the House last session and
was proposed as a-companion bill to
the free sugar schedule, the enact
in an annual revenue loss Of approx
imately $50. .ec0, 900.
The receipts under the present ex
else tax range from s25.00O.00o to
s3o,o0o.ooo and. IL Mr Hull,s estimate
is correct. the income tax bill. which
is now made a certainty will raise
about 100000 in addition.
This prospsct will enable the Dem
ocrats of the Ways and Means Com
mittee to proceed without worry to
the slashing of many existing tariff
rates and to the report of another
free sugar bill
Hull to Draft Bill.
In discussing the Underwood excise
bill Of the last session. Mr. Hull. pros
which now will be prepared. said:
II wish Congress now had the power
to enact a comprehensive graduated in
come tax with lower rates on earned
and higher rates on unearned income"
Now that Congress hast he power, Mr..
Hull will proceed with the drafting OF
en- income tax bill, and the measure TO
extend the excise tax to persons with
an annual income of more than 5000.
recommended as a temporary revenue
producer last session, will be discarded.
The present plan OF the Democrats
Of the Ways and Means Committee is
TO combine in a blanket statute the
substantive provisions Of the existing
corporation tax law and additional
legislation putting into operation a
simon-pure income tax. ..-.--
The committee did not formally con-