The daily banner. (Cambridge, Md.) 1897-2008, 1913-07-19
DEMOCRATS SEE
TARIFF SURPLUS
Debate Opens in Senate With
Majority Report
CUTS AVERAGE 27.64PER CENT
Unencumbered Single Men to Pay
Tax on incomes Exceeding $4,000
Yearly.

unencumbered Single Men to Pay
Tax on incomes Exceeding $4,000
Yearly.
Washington. July 19-An average
reduction OF 2764 per cent under the
rates OF the existing Payne-Aldrlch
tariff law is proposed by the Demo-
cratic tariff bill upon which the senate
began general debate, according to the
majority repart of the finance COM
mittee submitted by Senator Simmons,
the chairman.
The report also shows that the Dill
provides rates 4.22 per cent lower than
the measure did as it passed the
house and that from it, together with
other government receipts for the
year ending June 80, 1914. there will
be an estimated surplus in the treas
ury OF s2,o2o,00o.
Under the house bill the value oil
free listed imports, on the basis OF
1912 impOrtatiOns, was $lO3,OOO,oO0,
whereas the Democrats of the senate
propoes to free list imports valued at
STAT 1867 900.
Upon the basis of the bill being op-
erative for ten months OF the fiscal
year, the report estimates that the re-
CENTS from customs alone under it
will be s266. 1870, 900; fl ON income tax
for ten months, $5S,330 900: corpora
ton tax, $31,000,G00: internal revenue,
including tax on cotton futures OF So
OOO, 900. 1927. 900 900. and that the reve-
nue. from all other sources will bring
the total for the fiscal year to $685.
$4,000. Disbursements are estimated
| at 1894, 900.
In Analysing changes in the admin
istrative features of the bill the COM
mittee deemed the amendments of
the house entirely too drastic" partic-
ularly those authorizing examination
of books OF foreign manufactures, a
! FIVE per cent tariff discount on imports
on the American ships and other fea-
lures which were struck out.
Particular attention is called to the
senate provision 'designated to fur
nish the president with power to I'M
pose tariff duties of a retaliatory char
acter upon all articles comprised in a
specified list" including agricultural
products.
For some years." says the report,
there has been a development of
maximum and minimum tariffs abroad,
ind in not few instances the govern
ment of the United States has been
compelled to see its citizens subject
ed to harsh and discriminating tariff
treatment abroad without being able.
under the law, to afford relief.
1.-The tariff act of 1909 recognized
this situation and established a gen
eral maximum schedule of duties %
per cent higher than the general or
minimum rates of the law. This maxi
| mum schedule has<a proved embarras-
sing, clumsy and inadequate. No ma
, Terfaf-affvantage have been derived
from it, but, on the contrary, it has
food in the way of successful com,
Ymerce with other countries.
II 1.-THE provision now recommended
Twill, it is believed, place in the hands
| of the president powers which, though
| extensive in their sphere, are suffi-
GENTLY circumscribed to permit OF
| their being eXerted within the limits
| assigned them without disturbing the
| general fiscal system of the United
| States"
Of the reduction of the basic exemp-
ton from income tax from $4,000, as in
the house bill. to $4,000 for unmarried
| persons. the report says:
Your commi tee reduces the
! amount OF exemption of net income to
! $4,000 and ii nws. On account OF mar
| riage, an additional exemption OF ST.,
! COO to either the husband or wife
where they are living tose her, but no
| 10 both
'.In the case of minor child. OF
children. living with and depende II
| spnn the parent such parent is allow
! ed an additional exemption o. $500 fOI
| one minor cnild. and up to sioG0 o!
account of minor children. eNcep'
where both parents are taxable, il
| which case no exemption is ALLOWABLE.
| on account Of children.
BY the amendment ;he lowest pos
| sible exemption to any one person
| would be S3Ga0. AMI the highest pos
| sible exemption to any one pc sol
| would be $500. While the amendmen:
| may make no wide difference in the
| volume of revenue derivable from tn
tax, it is dee Iei equitable as recoe
| Eizing the @dded obi "a ions on ar
| count of marriage and children an
| salutary as emphas'Z.n. the nily
| the unit OF our sIcial ructure