Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1913-10-03
INCOME TAX LAW
TARIFF FEATURE
NEW REVENUE MEASURE IN EFF.
Feet SATURDAY IS FAR.
REACHING.
INCOMES MADE TO PRODUCE
$122, ,ooo, 900 ANNUALLY
Democrats Claim, and President Be.
lievss, Now Tariff Will Reduce Cost
Of Living Of Great Army Of consu.
msrs-Many Advantage Claimed
Over Payne. .AIdrieh Law.

Washington, Oct. 3.-President Will
sons signing Of the Underwood SIM
mons bill tonight brings into effect one
OF the most far-reaching revisions Of
tariff rates and revenue laws enacted
for many years.
A new income tax, applying directly
to the incomes Of citizens; the abol1-
tion of all tariff on scores Of items Of
immense Importance to American in
dustry and American consumers and
a heavy reduction OF tariff rates on
most OF the articles in general use in
this country are its chief features.
While certain portions Of the new
law do not take effect at once. most Of
its provisions and almost all the direct
tariff reductions do.
At every port collectors Of customs.
appraisers Of merchandise and hun
dreds Of other employees OF the treasury
department will plunge at once into the
task OF collecting the nations revenue
on new basis, and with hundreds of
new classiflcations and new provisions
Of law to complicate their activities.
$122y000yoC0 From Income Tax.
The federal government has been
spending nearly billion dollars a year
and the new tariff law will raise less
than third Of that sum. Recent
estimates by tar1n experts In congress
predict that the rates will raise $249,-
100000 a year; and that the income
tax will raise $122.00o.0O0. The re-
mainder Of the governments great in
come is made up principally of internal
revenue taxes and postal receipts.
The income tax probably will bring
the new tariff law most forcibly to the
attention. Of citizens. President Wilson
and democratio leaders In congress be-
lieve, however. that the reduction Of
duties on clothing. fo0dstuffs and 9TH
er neoessaries Of life. and the COM
plete removal of tho duty from many
like articles. will eventually bring a re-
duction In the cost Of living" with
out materially affecting business pros
perity.
Summary Of New Law.
A brief summary Of the new tariff
law as prepared follows:
Average percentage of tariff rates as
compared to tho value Of all imported
merchandise: Old law 81 per cent: new
law 27 per cent.
Value Of annual imports added to the
free list $147.O00.000.
Estimated revenue from all import
rates: Old law $305.o0O.000: new law
$24s,000.000.
Estimated revenue from corporation
and income taxes: Old law $37.00O,O00
new law $122.oO0.0o0.
Altogether, consumers in tho United
States probably will receive from
abroad free Of all tariff. more than ST.
000.000.000 worth Of merchandise dur
Ing the next year.
During 1912 the amount of free i'm
ports" was more than $SS0.000.000. and
when the tariff is entirely removed
from wool. sugar. iron ore and cheap
iron. and other important items. tho to-
tai is expected to increase notably un-
der the old law moro than So per cent
of all goods brought to the United
States from all parts of the world paid
no tariff. and that proportion will be
increased by the new law.
The free wool provision Of the new
law takes effect Dec. 1, 1918: the free
Four Months Of Work.
The new tariff law. passed four years
after President Taft signed the exist
Ing Aiar!ch Payne law. Is the result of
more than nine months of work in con-
gress. Hearings were started Jan. 6,
by the house ways and means commit
tee. Chairman Underwood introduced
the tariff bill April 7. Immediately aft
er President Wilson had convened the
new congress. It passed the house May
8, and the senate Sept. 0.
In the opinion of it's makers the DEM
ocratic leaders OF congress-, the most
Important features of the new tariff
are:
A reduction of nearly one-half Of the
average tariff on foodstuffs and farm
products. 80
The placing OF raw wool on the free
list. and a reduction OF nearly two
thirds In the tariff on woolen clothing,
especially Of the cheaper grades.
A reduction of one-third (average)
on cotton clothing.
Reduction Of the sugar tariff and Its
ultimate abolishment In 1915.
reduction OF one third (ayerage)
in the tariff on earthenware and glass
ware.
Adjustment Of all tariff on meats,
fish, dairy products, -four. potatoes.
coal, iron ore. lumber and many classes
Of farm and office machinery.
General tariff reduction on all i'm
portant articles in general use.
Party Contentious.
Thruout the long fight over the bill.
the republican attack on the measure
has been directed against those rates
which the republicans declared were 30
low as to threaten destruction to
American Industries. thru the compe-
tition of foreign manufacturers. The
democratic supporters OF the new law
have insisted that except in those cases
where public welfare demanded radical
changes the tariff has been reduced
only to a point where It will stimulate
competition" without turning Ameri-
can markets over to Foreigners.