Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1913-04-24

REIMBURSEMENT Of Entire Fiscal Policy of the
Nation Supplanted by Income Tax to
Adjust the Balance to Meet
Governmental Expenses.

| that would not injure or destroy legit-
innate industry. In this connection the
report said
10 protect profits of necessity
| means TO protect inefficiency 1t does
| not stimulate industry because a man
| ufacturer, standing behind tariff
wall that is protecting his profits, is
not driven to develop his business
along the lines of greatest efficiency
| and greatest economy. This is clear
| ly illustrated in a comparison of the
| wool and iron and steel industries.
Wool has had a specific duty that
when worked out to an ad valoren1
basis amounts to tax of nearly ninn-
all wooden goods imported into the
United States and the duties imposed
| have remained practically unchanged
| for forty years. During that time the
wool industry has made comparatively
little progress in eheapening the cost
of its products and improving its bus
| mess methods.
"On the other hand, in the iron ana
steel industry the tariff rate has been
cut every time a tariff bill has been
written.
yet the iron and steel industry has
not languished."
| In series of tables the report showed
that the articles. dutiable under the
| Payne law and placed on the free list
| by the Underwood bill, in the last year
yielded a revenue of s246ss, 226 on imports
of s102 40. 57s The committee took from
1 iyt "A niaJ dnfia m 81
articles which, 1t is estimated will yield
| s4647,055 revenue on 81. $40 during
l2-month period under the Underwood
/ bill.
computation by treasury experts
presented in the report shows that the
government revenue from all sources in
1912 was 1898 .522. isl, and the government
| expenditures 1901. 2e7 ,97s, leaving surplus
/ of s37, 224, 502. The estimated revenue
from all sources for the first year under
/ the Underwood bill is 1926 100000 and the
estimated expeditnres 1894, 10000. With a
| treasury surplus of sl,3s5.oOo this would
| leave a deficit to be raised by the In
| come tax amounting to SIS. 10000. The
| earning power of the income tax the first
year of its operation IL fixed by the re-
port at s7o,125.ooo.
| In its estimate of the amount to be
raised by the income tax the committee
presents a table showing that: $4,000 in
comes between 5000 and 5000 will pay
| $780, coo tax; $4,000 incomes between 5000
| and $4,000 will pay $5.340.0Oo; $500 in
comes between $4,000 and $4,000 win pay
| 81 100000; 245o0 incomes between $1,000
and $4,000 will pay ss.ls5,000; 1880 In
comes between $4,000 and $4,000 Will pay
| s., 100000: 1000 incomes between $4,000
| and $4,000 will pay 50. 900; $500 incomes
| between $4,000 and 10000 will pay sil.-
$4,000: 250O incomes between 100000 and
s25o.0eo will pay 81 .650.00o; $50 incomes be-
/ tween s25o.0O0 and 100000 will pay S. 49,
| 600: $50 incomes between 100000 and 81
100000 will pay ss,191ooo. and 100 incomes
over 100000 will pay s5.S2s.ooo, total
| of $4,000 incomes to be taxed $D,125.00o
| The report says that the income tax
IS included lin response to the general
| demand for justice in taxation and the
long standing need of an elastic and
| productive system of revenue"
| I'm connection with our legislative
! work of readjusting the old. and adopt
| ing q new fiscal policy" the report
| continues Congress should eliminate
| the Inequalities and abuses Of the ex-
| isting system of tariff taxation. re-
| duce the customs rates to a sound rev.
enue basis and levy an income tax 70
| equaiize the tariff burdens and to give
| elasticity and productiveness TO our
revenue system"
The report characterizes the present
| tariff system as ''fiuctuating, tnnex-
| ibIe. unstable and oftentimes unpro-
L he