The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1913-03-28
INCOME TAX LIMIT
MAY Be But $4,000
Plans BY Democrats in Their
Scheme For Tariff Re-
vision.
(National News Association)


come tax law which will reache every
person who makes more than $4,000
annually is now in prospect under the
Democratic scheme of tariff revision.
There has been a sort of general I'M
derstanding heretofore that the fellow
who made less than $1,000 would be
exempt, but the Government probably
will need the revenues, and indications
today are tint the exemption will be
put as low as $4,000
Such law would prove a jolt to all
the assistant secretaries" in the vari-
few bureau chiefs and Government
clerks, and to the fellow on the street
who has been proud to boast in the
past that his income was ''up in the
thousands"
Congressman Hull, the corporation
and income tax expert of the Ways
and Means Committee, is off in a
room all by himself today. He is por-
ing over bunch Of figures showing
the operation of the income tax in for
eign countries and is endeavoring to
find an equitable rate which Congress
may impose upon the high-salaried
American and the trust magnate.
While the actual rates in the income
tax bill will not be fixed until state
ment is compiled showing the loss of
revenues under the contemplated
tariff revision, the outlook is gloomy
for the mar who draws down more
than $500 per. Furthermore, Mr..
HuIPs plan is that the incomes shall
be collected at their source, and there
is no ovenue Of escape. Before an
other year rolls round the internal
revenue collector will be abroad in the
land levying tribute upon nearly
everybody who looks prosperous.
Hull Is Framing Bill.
Loaded down with books and papers,
Congressman Hull has gone into COM
parative retirement. When he energies
he will have under his arm what prob
ably will be the income tax bill which
the States recently declared to be con-
stitutional, and which the Ways and
Means Committee and Congress is ex-
pected to approve.
Under the Democratic plan for the
revision of the tariff, the income tax
will be the lifeline for for the sinking
Treasury. Cuts in the duties of every
schedule ordinarily would leave the
country's revenues in desperate
straits. Now that an income tax is con-
stitutional, despite that five-to-four de-
cision of of the Supreme court against
1t a number of years ago, the task OF
Democratic tariff revision is much sim
plified.
The duties may be slashed on sugar,
lumber, steel, wool, cotton manufactur-
es, machine tools, agricultural imple-
ments and farm tools-and the income
tax and Mr.. Hull will rush to the res
cue The fellow with the good salary
pays the freight, and the working man
who drayse his weekly wages" is ex-
pected to sit back for once in his life
and wear a satisfied expression.
The politicians claim that the work
ing man has been indirectly taxed for
many, many years. Here's an income
tax bill which will levy direct tribute
upon the man who holds position"
instead of a Job"
Expert Figuring Rate.
The new income tax will absorb the
existing corporation tax law, which
now produces nearly $30,000,000 annu-
ally in revenue. In the absence of def
mite figures by experts of the ways
and Means committee as to the in
roads upon the Treasury which will be
inevitable under the Underwood tariff
bill, it is now estimated that the in
come tax must produce between $685.
100000 and $150,000.000 annually.
The rate of tax will be fixed in &C.
cordance with the report of experts
who are now figuring out the estimat-
ed revenues under the Underwood tar
iff bill. If it is shown necessary, the
rate ON so-called unearned incomes
and dormant fortunes will be higher,
the Democratic view being that the
taxpayer drawing the more modest in
come should not pay the same rate
as the coupon clipping capitalist.
Originally, Mr.. Hull favored 1 per
cent tax on all the incomes above So
600 which are designated as earned