The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1913-04-22
INCOME TAX To
MEET EXPENSES
tContinued from Page one.o

1.-The saving thus made in revenue
collections said the report, sis only
suggestive of the immensely greater
saving secured to the public by the
probable change in prices resulting
from the removal of the excessive rates
in the present law.
1.-THE increased cost of living was
mentioned as the most striking eco
nomic change needing adjustment
| through the tariff and a table was
submitted showing the percentage of
increase in wholesale prices of many
articles in the period from 1897 to 1910.
| The table gave the percentage of in
| crease: Since 1897 to 1910, in farm
products, as 1872 per cent; food, 467
per cent: clothing 1873; metals and
23-9; house furnishing goods, 24.2; mis-
cellaneous, 44.5; an average increase in
such commodities of 467 per cent"
In a series of tables the report said
that the articles dutiable under the
Payne law, and placed on the free list
yielded a revenue $24, 698.226 on i'm
ports of $102, 400. $40. The committee
took from the present free list and
levied duties against articles which es-
timated yields $4,647,055 revenue on
$42, 595,510 during a twelve month period
under the Underwood bill.
Duty of Income Tax.
A computation by treasury experts
presented in the report shows that the
government rovCnu,, from all sources
in 1872 was 1886, 522, 4S2, and the govern
ment expenditures 1901, 297 ,979, leaving a
surplus of $3s, 224, 502. The estimated
revenue from all sources for the first
year under the Underwood bill is $685.
COG, 000 and the estimated expenditures
1894. 100, 0OO With treasury surplus of
81 ,335, 900 this would leave a deficit to
be raised by the income tax amounting
to 1858, 100, 900.
The earning power of the income tax
the first year of it's operation is fixed
by the report at $70,125,000.
In close conjunction with the high cost
velopment of trusts and industrial comb1- |
nations during the same period, and gave
a list Of 226 such combinations organ 1aa
and with aggregate capital of many Dill |
lions. Discussing the Democratic theory |
the establishment of duties designed pri- |
marily to produce revenue Wlthout
thought for protection. and for the at
would not injure or destroy legitimate IN
dustry. In this connection the report |
said:
Will Not Protect Inefficiency.
ITO protect profits, of necessity means |
to protect inefficiency. 1t does not stlmu-
late industry because manufacturer
standing behind tariff wall that is pro
tecting his profits, is not driven to develop |
his business along the lines of greatest
efficiency and greatest economy rms is
clearly illustrated in comparison OF tne
has had a specific duty that wien worked |
out to an ad valorem basis amounted to d
tax of nearly 80 per cent of the average
value of all wooden goods imported into
the United States and the duties imposed
have remained practically unchanged Ior
forty years. During that time the WOOL
industry has made comparatively nttie
progress in cheapening the cost of Its
products and improving It's business
ION the other hand. in the iron and steel
the tariff rate has been cut
Yet the iron and steel industry has not
The report says that the income tax is
included ''in response to the general De
mand for justice in taxation and the long
standing need of the elastic and produc-
tive system of revenue" ,-,.,o.,o
I'm connection with our Legislation
work of readjusting the old and adopting
a new fiscal policy the report continues,
and abuses of the existing system OF tarlH
ia xation, reduce the customs rates to
sound revenue basis and levy an income
tax to equalize the tariff burdens and to
give elasticity and productiveness to our
revenue system.
Slap at Present System.
The report characterizes this present
tariff system "fluctuating, inflexible, |
unstable and oftimes unproductve, thus
exposing the government to deficiencies
or excess with all their attendant en-
barrasSment.'
The report declared the maximum and
minimum clause of the Payne law giving
the president the power to impose addi-
tional duties on the goods of countries de-
eIining to include the United States as "a
most favored nation in commercial ad-
iustrnent has been failure. The new bill
strikes that provision from the law and
gives the president the power to negotiate
trade agreements containing Mutual !
concessions with foreign countries to be
approved by congress-.
ARREST CATTLE RTTSTTFR.