Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-04-26
Contrasted With Protective
Tariff by Representative
Huh of Tennessee.
new SYSTEM APPLIED
TO HOLDERS OF WEALTH
Speaker Assures Country That Clause
in Underwood Bill Will I'm
pose No Burdens.

Representative Cordell Hull of Tennes-
see addressed the House of Represent
atives today for an hour. explaining what
the income tax as proposed in the Under
wood tariff will do. what inequalities it
will abolish and what will be the method
of its collection.
I'm view Of the experience of other
countries he said. 1T is confidently be-
Heved that when this measure becomes a
law and is adjusted to the country and
understood by the people the universal
judgment will be that 1t equals In Its sat-
is factory operation and excels in justice.
fexibility and productiveness any tax
law on the statute books
Mr.. Hull scored the high protective tar
in as most diabolical punishment upon
the moderate income, and said that the
present taxation system is responsible for
a state Of affairs, under which untold bill
lions, all in the hands of rich men, are
escaping taxation. He said that the one
way to prevent this escape is by an in
come tax.
Mr.. Hull impressed his hearers with
his belief that the present system Of
raising revenue for the national gov
ernment gives every opportunity Tor
the very rich to escape their full share
of taxation. He said there had been
general agitation in every state and
country for practical readjustments of
the taxation system, Ito the end that
every citizen may be required to con-
tribute to the wants of the state or
government in proportion to the reve-
nue. he enjoys under its protection.
Alleges Effort to Shift Burdens.
- <~Yoo,o - ~ 6.oo, t,;.<or,. of al,
countries shows a constant effort Ton
the part of the wealthy to shift the
chief burdens of government taxation
to the shoulders of those weaker, poor
er and less able to protect themselves
from the injustice and oppression IN
fiicted by disproportionate taxes"
Mr.. Huh said that as a result Of unjust
tax laws gross Inequalities are to be
seen on every hand I'm the United States
He took the tax figures of several states
to prove what he termed inefhciency and
unfairness. A single instance was thai
of the state Of New York. where one cen
property. while the tax books showed
| $4, 600, 900, 600 less. Other examples wers
cited, all leading up to the conclusion
that the richer a person grows the les'
he pays in relation to his property or in
come, and that under the present system
Of taxation personal property practically
escapes all taxation for state or nationa
purposes"
And it is on this supposedly mammoth
sum Of money which has so long escaped
the Underwood tariff bill and fOstered by
Mr.. Hull Of Tennessee will produce the
large sum of money which will be needed
to support the government under the re.
been termed free trade" by the republi.
cans.
Mr.. Hull went on to explain in detail
just what persons are able to enjoy {
and escape all taxation. although thei
wealth amounts to millions Of dollars
The only individual that he mentioned
was Andrew Carnegie. who was accused
of having escaped personal tax on IS,
100000 for many years.
Says Tax System Crushes Poor Man
However" said Mr.. Hull. 1.-THE small
property owner who cannot hide hi.
property constantly feels the crushing
weight Of tax systems. while the rich in
vestor in securities, the money Lenders
and the wealthy business and profes
sional man cover up most of their tax
able property.
He continued: Turning to our pres
ent system Of national taxes we find
worse condition with respect to our Gus
tom house taxation. Our system OF higl
protective tariff taxation violates ever,
canon Of taxation, and is outra geous il
it's operation and effect. No civilized Of
humane people can longer tolerate thi
system of diabolical eXtortion. In con
trfbuting three hundred millions to tn,
federal treasury the American consumer
is forced at the same time to hand ovel
at least 81. .JOOOCO.OOO as a bonus to tn,
select individual given special favors b,
the high protective tariff tax. During
generations our high tariff taxes hav,
degenerated into system of specia
privilege, such as has never been befor,
revealed in history"
Leaving his attack on privilege and pro
lection, Mr.. Hull branched out into a dis.
cussion of a tax upon incomes. He said
pages containing in detail all the meth
DDS Of administration. such as European
and other laws present, this measure
briefly describes each essential rule with
respect to the collection Of the tax and
leaves to the Secretary of the Treasury
the manner of carrying out the law.
Section >, paragraph 4, of the tariff
bill, imposes a tax of 1 per cent a yeaar
upon the annual income of every indi-
vidual netting over $4,000. and a like tax
company or association in the United
States. no matter how created or organ
lied, without exemption. In addition to
this normal or basic tax OF / per cent,
which applies to all individuals and cor
porations alike, a graduated additional
tax is imposed upon the total annual net
income Of every individual derived from
all sources, including corporate dividends,
exceeding 10000.
Instead Of making this additional
tax q fiat rate. the same is graduated
in its application to incomes from
$20,0 900 to 100000 thus leaving a nat
rate of per cent additional on that
portion Of any income exceeding
800, 900.
Return Made on Net Income.
Each individual to whom the addi-
tional and graduated tax will apply
makes q personal return in every In
stance Of his total net income from all
sources. He will compute 1t by taking
his net income as computed for the
purpose of the normal tax, and SUBJ
stituting the exemption OF $4,000 for
the normal tax exemption OF $1,000,
and then adding, first. the amount Of
his net income upon the which the tax
was Withheld and paid at the source by
another for him, and second, the
amount OF dividends or other net earn
ings received or receivable by him from
corporate sources. No part OF the ad-
ditional tax imposed is collected at the
source Of the income. This method
enables the government to reach all
large incomes exceeding $4,000 by as
sembling the same in the individual to