The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1913-08-27
TAX RATES On
LARGE INCOMES
NOT INCREASED
Senator Borah's Amendment
to Income Section of Tariff
Bill Defeated in Senate
by Vote of AZ to IL.

WASHINGTON. Aug. o6,-Attempts
to increase the limit of the proposed
income tax. on the larger incomes fail
ed in the senate today, when Senators
Borah, Brstow and Cummins led an eff
fort TO amend the income tax section
of the Democratic tariff bill.
Senator Borah offered an amend
ment increasing the graduated tax on
larger incomes until it would have
reached five per cent on those above
100000 year. The Democrats, aided
by ten Republicans, defeated the
amendment, AZ to Il.
A more radical provision, with a
maximum tax of ten per cent on in,
comes of 100000 or more, will be sub.
mitted by Senator Bristow, when the
debate is resumed tomorrow.
New Bill Provisions.
In the pending bill the rates on larg
er incomes arc:
One per cent on incomes from $780,
900 10 $4,000; two per cent from S50,-
600 to 100000 and three per cent
above 100000
Senator Borah proposed the follow,
ing additional tax
One per cent on incomes from Sl0,-
600 10 $4,000, two per cent from $780,
COO TO $4,000; three per cent from s50,-
600 to 5000; four per cent from $780,
600 to 100000, and five per cent
above 100000,
The Democrats voted solidly against
bo ip,p hy
tors Clarke of Wyoming, Gallinger,
Lippitt, Lodge, Oliver, Penrose, Root,
Smoot Warren and Weeks from the Re-
publican side.
The senate reached the income tax
section Of the tariff bill unexpectedly
late in the afternoon, after finishing
the first reading Of ali the tariff sched
ules in the bill. The debate is expected
10 continue for a day or two.
The demand for an increase of the
tax on big incomes was accompanied by
the declaration that men with large in
comes would escape their just share of
the taxes under the new bill.
Small Income in Sight.
"The man with the small income al
ways pays his tax more, completely,
said Senator Borah ethan does the
man with the larger income. 1t is much
easier to find all of the $4,000 income
than TO find all of the $4,000 income
A tax of four or five per cent on the
man with 100000 will not inconye- !
nience him more than the one per cent
tax will inconvenience the man with
S5000''
Senator Williams, who had charge Of
the income tax provisions for the
Democratic side, insisted that the com
mittee had been compelled to go slowly |
and cautiously in inaugurating the new
form of direct taxation
"We thought it well not to estab
lsh the tax upon simple grounds, he |
said. Experience alone will show how
necessary in it. In the future the |
American people will have representa-
,ives here who will revise and perfect |
it.
Senator Root said the plan TO tax the |
undivided "gains and profits of all
corporations or partnerships would be |
impossible Of administration, He in |
sisted that these undivided profits were |,
part of stockholders capital, and not |
his income
To Revise Section.
Senator Williams said this section /
would be gone over again in the com
mittee. in an effort TO make its mean !
ing more clear. 1t was devised, he |
said to prevent evasions of the tax.
When the senate adjourned onight |
II had one hundred or more of the para |
graphs covering tariff rates still to dig |
pose OF. These are scattered through !
out the various schedules of the bill |
Senator Simmons, the tariff leader. an ]