Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1913-04-23
NATIONAL BALANCE
WHEEL i INCOME TAX
DEMOCRATS PROPOSE TO MAKE
WEALTHY MEN MEET GOV.
EMINENT DEFICIT.
TO MAKE UP SHORTAGE
IN ANNUAL EXPENDITURES
Ways and Means Committee Explains
What II Hopes Will Be Accomplished
in Effort to Lower Cost Of Living -
COMMITTEES Plans Outlined = Other
News Of the Day.

NO"S OF Inc Odys
| Washington, April 23.- Presenting
| the completed democratic tariff re-
vision bill TO the house, the democrats
[: of the ways and means committee rec
commended a radical REIMBURSEMENT OF
] the entire fiscal policy OF the nation
They proposed to make an income tax
| the means of accurately adjusting the
funds to be raised by taxation to cor
respond with necessities for govern
ment expenditures
The report. after outlining the oper
ations of the proposed income tax. said:
The revenues from all income taxes
readily respond to changes of rates and
the latter can be raised or lowered
within few days time without bust
neess disturbances such as general tar
| if changes occasion. Il is believed
that budget or other effective system
by which congress may be able closely
to calculate and determine in advance
Forthcoming expenditures soon will be
devised. in which event it should be-
come easy to maintain a close balance
such as is practiced in must other civ
ilized countries. With other sources of
reveppe revised TO honest and fixed
basiS and the income tax a permanent
part of our revenue system and al all
times affording a substantial amount of
revenue. congress could and, if neces-
sary, should annually raise or lower
the income tax rates in such manner
cit def
surplus In the treasury"
Eliminate Protection.
The democrats. outlining their policy
in the preparation of the bill an
nounced an absolute disregard for the
cost Of production theory as regula-
tory of tariff rates and declared that in
the pending bill they had attempted
ITO eliminate protection of profits
and to cut OFF duties which enabled in
dus;rial managers to exact a bonus for
which no equivalent is rendered. To
introduce in every line of industry a
competitive tariff basis providing a
substantial amount of importation to
the end that no concern shall be able
TO feel that it has a monopoly of the
home market gained other than thru
the fact that it Is able to furnish bet
ter goods at lower prices than others.
Which is the wiser course for our
government to take?" the report asked
the one that demands the protection
of profits, the continued policy of hot
house growth of our industries-the
stagna ton of development that follows
where competition ceases. or on the
other hand. the reduction of our tariff
laws to a basis where the American
manufacturer must meet honest compe-
ton. where he must develop his bust
ness along the best and most economi-
cal lines: where. when he tights at
home to control his market ne is open
ing the way TO extend his trade in the
markets of the world. In our Judgment
the future growth Of our great in
dustries lies beyond the seas
Table Of Revenues.
"A detailed table was presented
showing. by schedules. the total reve-
nue. secured under the Payne law for
1912, and the estimated revenue under
the new law for a twelve month Pc
riod The table showed that In 1872
$3.50 SIS worth of imports paid
1904 .59I, 035 in duties at an equivalent
average ad valorem rate of 40.12 per
, cent. 1t estimated that under the new
bill. $1,000. 99s, coo worth of imports
would pay 1865. 101 900 in duties at an
average ad valorem rate OF $3.50 per
cent. Thus the new bill would raise
1886. 600 less than the present law.
The saving thus made in revenue,
collections" said the report. is only
suggestive of the immensely greater
saying secured to the public by the
probable change in prices resulting
from the removal of the excessive rates
Of the present law.
Cost of Living.
Tne increased cost of living was
mentioned as the most striking econ
ornic change needing adjustment thru
the tariff.
In clcss conjunction with the hign
cost Of living. the report suggested the
development of trusts and industrial
com binations during the same period
/ and gave list OF 226 such combina
lions organized since 1897.
! II also referred TO the rapid eXhaus-
ton of natural resources and said:
That the protective system has been
greai;s- influential in maintaining a
too rapid rate OF depletion OF natural
resources in order to satisfy the con-
stantly increasing demands of rising
! population is an unmistakable fact
Discussing the democratic theory of
! tariff revision the report said:
! ITO protect profits. of necessity
means TO protect inefficiency. 1t does
not stimulate industry because a man
ufacturer standing behind a tariff wall
that is protecting his profits is not
! driven to develop his business along
the lines of greatest efficiency and
/ greatest economy
Income and outso.
J In a series of tables the report states
I thta the articles. dutiable under the
| Payne law and placed on the free list
| by the Underwood bill, in the last year
Yielded revenue of s24.69s,226 on i'm
ports OF $102.402,579. The committee
| took from the present free list and
levied duties against articles which 1t
| is estimated will yield $4,647, 055 rev
enue on s42,595.510 imports in a
| twelve IN onth period under the Under
wood bill.
! A computation by treasury experts
| presented in the report shows that the
| government revenue, from ali sources
\ In 1912. was $93s,522.4s2, and the gov
eminent expenditures Ss01,2s7, 97s.
| leaving a surplus of $37,224.502. The
| estimated revenue from all sources for
the hrst year under the Underwood
| bill Is 1926, 600. 900. and the estimated
/ eooA ron o,n a