Daily capital journal. (Salem, Oregon) 1903-1919, 1913-04-21

ences much more than by tariff duties.
The plea has been made in behalf of
the sheep raisers of the mountain states
and of Texas that they are entitled to
the benefit of President Wilson S an
nouRcement that revision is to be eff.
fected in way to do least harm, but
the committee doubtless felt that this
consideration as outweighed by the
promised benefit of free wool to manu-
facturers and consumers alike.
The cut in the duties on blankets,
flannels, dress goods, clothing, and car
pets is substantial, almost radical, rang
ing from so to 20 per cent of the pres
ent duties. The cotton goods schedule,
which was reckoned the most sinful
next to schedule X, has been dealt with
in way TO give real relief to consum-
ers, but also real pain to Sen. Lippitt
of Rhode Island. The china and crock
cry schedule has been more leniently
dealt with. The committee has acted
wisely in not removing the entire duty
on sugar. The reduction proposed am
cunts to about 25 per cent of the pres.
ent duty, thus saving to the govern
ment very large revenue, but by the
terms of the bill sugar will be put upon
the free list after three years. 1t is
highly questionable whether the con-
sumer would reap much benefit of the
removal of the duty, and the retention
of three-fourth of the present impost
will make easier the passage of the bill
in the senate.
FoOdstuffs and farmers products,
where any duty is retained will pay a
lower rate, and IN this class of commod.
tiles very large additions have been
made to the free list, including meats,
flour, bread and potatoes. Wood pulp
and print paper worth not over 2la
cents pound will 90 upon the free list,
and the Democratic promise of remov.
ing the duty from trust-made products
is kept in the case of agricultural inn
plements, steel rails, fence wire, cotton
ties, nails, hoop and band iron, and
many other articles. A demonstration
will now be had of the truth or error
of the statements so often made by men
of large experience in the iron and steel
business that the prosperity of that in.
dustry no longer depends upon protec.
tive duties. Boots and shoes are free.
A guiding principle of the makers of
the bill has been to reduce largely OF
remove altogether the duties upon ar.
ticles of common use for wear or food,
while the duties upon articles of lux.
ury either remain unchanged or in some
few cases have been raised.
The income tax is laid at the rate of
per cent upon incomes in excess of
$4,000, with progressive increase of
the rate as the incomes rise, so that
the levy would be at the rate of per
cent on incomes-in excess of $4,000, 8
per cent in excess of $4,000, and 4 per
cent on incomes in excess of 100000.
In the analysis of the bill the working
of this provision is explained to show
that an income of $4,000 would pay
the government per cent on $4,000,
$4,000 being exempt, making the tax
$l60; in the same way an income of
$4,000 would be taxed per cent on
$4,000 and per cent on the nexS$lO,.
900, making the total tax $500. Reck.
oned in this way, an income of 100000
would pay the government tax Of &c..
g60. A comprehensive list of the sourc.
es Of income is given, but deductions
are allowed for interest on indebtedness
and in computing net income dividends