Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1913-03-27
INCOMES OF OVER
$4,000 T0BE TAXED
Tentative Limit Of $1,000 Not
Enough to Provide S125,000,-
900 Revenue Necessary.

Washington. March 2l-Nith lndlca-
tons that the proposed income tax bill
would levy tribute upon all incomes
above $3.50, Representative COrdell HUI.
a member Of the ways and means COM
Imittcc, has begun the task Of whipping
that measure into shape. Tho loss of
revenue under the democratic scheme Of
tariff revision. ii is believed. will he so
great that a more sweeping income tax
| bill, than was at first contemplated will
| bc framed
While Mr.. Iiuu Is working out the de-
tails of an income tax bill which he
viii submit to the committee within the
next week Chairman Underwood Is
preparing the report on the tariff bill.
which has about been completed. After
submitting this report to the committee
Nh. Underwood probably will take a few
days rest in advance OF the extra SEES
sion while his colleagues 20 over the
voluminous document.
There has been "a tentative under
standing among members of the ways
land means committee that the income
tax bill would apply to all incomes
above 5000 As the estimates Of tho
ircvcuuos under the new tariff law are
being made. however, 1t is suggested
that the 5000 exemption will he too high
and that an income tax upon incomes in
excess of 1890 will be necessary to supply
the deficiency.
MUST PRODUCE sl25OooDO.
The new income tax law will absorb the
existing corporation tax law, which now
produces nearly $S0,6p,00 annually in
revenues. In the absence of definite fig
committee as to the inroads upon the
treasury which will be inevitable under
the Underwood tariff hill. it is now esti-
mated that the income tax must produce
between l5,0ol,010 and Sl500oo,000 annu-
ally
The rate Of tax will be fixed in accord
ance with the report Of experts who are
now figuring out the estimated revenues
under the Underwood tariff bill
If found necessary, the rate on so-calleC
unearned incomes and dorman fortunes
will be high, the democratic view being
that the taxpayer drawing the more mod
est income should not pay the same rat
as the coupon clipping capitalist.
: Originally, Mr. Hull. who is the income
tax expert of the House, favored u on,
per cent. tax on all incomes above $500
designated as earned incomes. on un
earned incomes Mr. Hull suggested al
/ H. per cent. tax and graduated higher
1ate on unusually large incomes from
large real estate holdings and "swolleI
fortunes" The eXigencies of tariff rev
) sion, it now seems, will make necessary
an income tax on salaries and receipts
from other sources above the sum o
$500 annually.
Assuming that the tax will be on
per cent. on earned incomes, the mem
D Der Of Congress, for instance, VIII
4 draws $1,000 annually will contribute
= $40 of that amount TO the interna
+ revenue collectors
DEEP INROADS ON REVENUE
= When the democrats attempted t
:, enact a free sugar bill at the last SEES
sion it was proposed that the loss il
90 revenue should be made good by a.
= extension of the corporation tax. Thi
=, loss would have amounted 10 approx
;, imately $50, 600, 600. The House is still
f stan ding pat on its free sugar propa
II ganda, md the revision of PRACTICAL,
y every schedule in the Payne law vii
- make deep inroads upon the revenue
y of the government in addition to tn
: free sugar losses. A conservative es
q innate is that the income tax, there
3, fore, must produce considerably NOR
T. than $l00000O00 in revenues If tn
t treasury balance is to be maintained
= The ways and means committc
o plans to include the income tax as
Z rider upon the tariff bill If a SEIZED
& ule by schedule revision is undertaken
y and this is likely, the income tax bill
= will be considered separately. but wit
i reference, nevertheless. to the esti
l. mated amount of receipts and dis
e bursements which will be chalked u
: during the period that the underwoo
tariff bill is in effect.
- ASKS COUNTRY TO WAIT.
Mr. Und erwood asks that the countr
, | withhold Judgment on the tariff reVlsio
d bill until it is presented to the House
r Since the ways ana means commute
# commenced its work OF revision of III
n present tariff laws" he says, II have T,
@ Trained from giving interviews to II
Pc press, but recently / have read in II
# newspapers so many misleading Stat
a. meuts about the work of the ways an
l. means committee, and SO many assertion
r of fact which are not fact as to whi
n the committee has done concerning Il
J. various paragraphs and schedules of Il
p bill, that | feel it is fair to the public
" say that practically every statement
is have read in reference to the rates of du
II that would be imposed on the artIcl
sr enumerated in the proposed new tari
,sl IS Oh 81, al mic md mo