Highland recorder. (Monterey, Highland County, Va.) 1877-1972, 1913-07-25
DEMOCRATS SEE
Tariff; SURPLUS
Debate Opens in Senate. With
Majority Report
CUTS AVERAGE II. 64PER CENT
Urencumbered Single Men to Pay
Tax on Incomes Exceeding $4,000
Yearly.

Yearly.
An average reduction Of PISA per
cent under the rates of the existing
Payne-Aldricl. tariff law is proposed
by the Democratic tariff bill, on which
the senate besan general debate, &C.
cordng to the majority report of the
finance committee, submitted by Sena'
tor Simmons, the chairman.
The report also shows that the bill
provides rates % per cent lower than
the measure did as 1t passed the
house and that from it, together with
other government receipts for the
year ending juno 30, 1914, there will
be an estimated surplus in the treas
ury of $2,02O,0OO. -
Under the house bill the value Of
free listed imports, on the basis of
1912 importations, was $103,000,0O0,
whereas the Democrats of the senate
propoes to free list imports valued at
$147,367, 900.
Upon the basis of the bill being op-
erative for ten months of the fiscal
year, the report estimates that the re-
ceipts from customs alone under 1t
will be $266,73O,0OO; from income tax
for ten months, $5S,330,O00; corpora
ton tax, $37,0OO,0O0; internal revenue,
including tax on cotton futures of S.
100000, 1927, 100000, and that the reve-
nue. from all other sources will bring
the total for the fiscal year to $685.
100000 Disbursements are estimated
at $994,79OOO
In Analysing changes in the admin
istrative features of the bill the COM
mittee deemed the amendments of
the house entirely too drastic" partic-
ularly those authorizing examination
of books of foreign manufactures, a
FIVE per cent tariff discount on imports
on the American ships and other fea-
lures which were struck out.
Particular attention is called to the
senate provision designated to fur
nish the president with power to i'm
pose tariff duties of retaliatory char
acter upon all articles comprised in a
specified list" including agricultural
products.
"For some years." says the report,
there has been a development Of
maximum and minimum tariffs abroad,
ind in not few instances the govern
ment of the United States has been
compelled to see it's citizens subject
ed to harsh and discriminating tariff
treatment abroad without being able,
under the law, to afford relief.
''The tariff act of 1909 recognized
this situation and established a gen.
eral maximum schedule of duties 25
per cent higher than the general or
minimum rates of the law. This maxi
mum. schedule has proved embarras-
sing, clumsy and inadequate. No ma
terial advantages have been derived
from it, but, on the contrary, 1t has
stood in the way of successful COM
me~ce with other countries.
"The provision now recommended
will, it is believed, place in the hands
of the president powers which, though
extensive in their sphere, are suff1-
GENTLY circumscribed to permit Of
their being exerted within the limits
assigned them without disturbing the
general fiscal system of the United
States"
OF the reduction of the basic exemp-
ton from income tax from $4,000, as In
the house bill, to $4,000 for unmarried
persons, the report says:
your committee reduces the
amount of exemption of net income to
$4,000, and allows, on account of mar
riage, an additional exemption of ST.,
600 to either the husband or wife
where they are living together, but not
to both.
"In the case of a minor child, or
children, living with and dependent
upon the parent such parent is allow
ed an additional exemption of $500 for
one minor child, and up to $1,000 on
account of minor children, except
where both parents are taxable, in
which case no exemption Is allowable
on account of children.
BY the amendment the lowest pos.
sible exemption to any one person
would be $4,000, and the highest pos
sible exemption to any one person
would be $4,000 While the amendment
may make no wide difference In the
volume of revenue derivable from the
tax, 1t is deemed equitable as recog
nizing the added obligations on &C
count OF marriage and children and
salutary as emphasizing the amily as
the unit OF our social structure