New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-09-03
ROOT OPPOSES HIGH
RATE OF INCOME TAX
Insists That Burden of the Levy
Should Not Be on Indus
trial Centres Alone.
PLEADS FOR STATE RIGHTS
Would Fix the Exemption at
$1,000, So That Unjust Dis
elimination May Be Avoid
ed-Mr. Lewis Replies.


Washington. Sept. 1.-The plan Of the
Democratic majority of the Senate to levy
high tax on swollen incomes was made
the subject OF protest to-day by Senator
Root, who said Il would constitute dis
elimination against the State OF New
York and impair its taxing resources.
Mr.. Root said that he was In favor OF
an income tax, and had voted for the
constitutional amendment 10 that end,
but he counseled his colleagues on the
Democratic side to use moderation In
fixing the rates. For the first time since
the bill had been under discussion he
raised the question of the rights OF states,
and insisted that the burden OF the tax
should be distributed equitably.
"You are answerable." said Mr. Root
10 the Democratic Senators. ITO the peo-
pie Of your states alone. You are not an
swerable 10 the people OF New York
Nh. Root warned the Senators from
agricultural states that they would en-
counter difficulty in shifting the burden
from the shoulders OF their own con-
stituents TO the shoulders of the large
Industrial states.
The State Of New York. Mr.. Root said,
had sacrificed its own rights and privi-
leges 10 bring about equality OF repre-
sentation In the Senate, trusting 10 me
sense of fairness OF the other states not
10 misuse the advantages thus conferred
on them Nevada. he pointed out. with
a total vote Of 5000 had an equal voice
I'm the Senate with New York. with vote
Of 100000.
Believes in Income Tax.
Il am in favor OF an income tax, SAID
Senator Root. II believe In the principle
OF IT, think il fair, and I voted FOR the
income tax amendment and urged II upon
nv people. I have no fault 10 find with
an income tax or a graded tax. But II
Won inpose too great tax upon the IN
dustrial states you will to that extent di-
minish their taxable resources for state
or other local purposes.
"The State Of New York last year i'm
posed direct taxes to the amount or
sg34OOo.oO0. a far greater amount than you
cxpect TO raise from this excise in the
whole country. We tax inheritances and
franchises Last year we raised 900
from inheritance taxes and so. 900, 90 from
franchises In laying your taxes You
should not treat the taxable resources OF
our state less fairly than you treat the
resources Of other states.
The pending bill will diminish the
taxable resources Of New York more
than the old income tax law. II you 60
on making the rate on the incomes Of
q, 81, n
take it away from them. you will d.
minish tho resources OF the state more
proportioEately than you impair the re-
sources % the agricultural states, and
YOU are enabled to do this because New
York has placed herself voluntarily In
your power and relinqushed her consti-
tutional rights trusting 10 your sense Of
fairness as between states
Two classes-the one spending and the
other paying-were not desirable in the
United states. Senator Root added 4 tax
on small incomes. as well as large. would
not be hardship on the small taxpayer
and would inculcato sense Of public
economy. He suggested that the exemp-
ton be fixed at 5000
Not Fair Division.
when YOU put the exemption above
81. 90" said Mr. Root. you exempt your
own constituents from the agricultural
states and SHIFT the burden 10 the indus
trial centres. How long will a part OF
tho country he content 10 bear tho bur
den Of the whole country. as YOU invite
IL TO do by your superior numbers and
representation here"
Senator Lewis. in replying TO Senator
Root. asked II he considered as his own
people only the brood OF gentlemen who
nest above Wall Street and took no ac-
count Of the toiling millions in the state
Mr. Lewis said that Senator Root had adj
vocated as an ideal OF the Roosevelt adj
nlinistration that the national govern
ment step in 10 conduct the affairs OF
states which had neglected TO conduct
them properly for themselves. and that
the high income tax was the application
OF this ideal TO New York, which had
failed 10 collect taxes from the wealthy
classes.
II did not say that" declared Senator
Root. Il never have said IL and ! never