The Washington times., 1913-04-07
DEMOCRATS HOPES
UPON INCOME TAX
Is Life-Saver to Tariff SIashers
Who Will Cut Deeply Into
Country's Revenues.

A more equitable distribution of the
burdens of taxation is sought in the in
come tax rider to the Underwood tariH
bill introduced in the House today.
Wealth is called to contribute gener-
ously toward the revenues of the Gov
ernment, and no person who receives
more than 5000 annually will be eN-
empt from the process of dividing with
Uncle Sam
Three-fourths of the States recently
ratified the income tax amendment to
the Constitution, thus circumventing a
Supreme Court decision whereunder an
income tax was declared unconstitu-
tional
The income tax is a life-saver for the
Democratic tariff revisionists, who have
cut deeply into the country's revenues,
but who may compensate for all loss
through the levying of an impost upon
annual incomes. from whatever source
derived. 1t is estimated that the in
come tax will raise between SIZE, 900, 900
and $3.50 100000
After Dodgers.
That the proposed income tax will
place part of the burden of the support
Of the Government on the shoulders
of those best abe to- bear that burden
is the position take'l by the Democratic
members of the House Ways and Means
committee, and persons who are nov
tax dodgers will be forced 10 NEE,
their obligations under the new plan,
the committee asserts.
Easing the Federal income entire
ly upon customs and internal revenue
duties, says the committee in explain
I'M re.f. x.f la
system OF taxation which inevitably
throws the burden Of supporting the
Government upon the shoulders of the
consumers. 1t correspondingly eXempts
the men of larger income, whose con-
sumption of the ordinary necessities
Of life is subject to tariff taxation i'll
q far less aggregate degree than is
that Of the smaller income earners
who eNpend the greater proportion o.
their resources for the ordinary neces-
sites of life.
Owing to defects in personal prop
erty taxation the larger incomes of the
United tSates have for many years beeI
able to escape with less than their
general share Of the general burden Of
taxation. This inequality will be, Ii
plan now proposed"
.. The Rates.
No wage Garner who receives less
than A,0o0 year is subject to the tax.
Above A,0oo and up to $4,000 the new
tax VIII be ! per cent; between SO 600
and $4,000 1t will be per cent; between
$4,000 and 100000 per cent, and above
100000 per cent.
To reach the tax dodgers who reside
abroad the new law makes all Ameri-
can citizens, no matter where residing,
subject to the tax. 1t defines in min
ute detail, and at very great length
just what shall be considered income,
leaving no apparent loophole for argl-
ment on this line.
The committee changed its mind |
about making the tax apply to Presi- !
dent Wilson, although all of his sue
c.ssors Will have to pay. The eXemp- |
uon clause affects the present Presi- |
dent during the term for which he has |
been elected; the judges OF the Supreme |
Court and of the inferior courts of the |
United States now in office, and the |
compensation of all officers and en- |
division thereof" This will enable gov |
generally 10 escape the tax. Exemption !
Is also given to labor, agricultural, |
fraternaL beneficial mu- |
tual benefit, religious, charita BILE, and |
organizations.
Verified returns of their income must |
be made by all citizens and furnishing !
OF fraudulent lists shall be penalized |
by an addition of 100 per cent to The |
tax In addition 10 the person being sub |
ject TO the present penal provision |
a against perjury. The law is also ex-
tended to the Philippines and to Porto |
Rico.