The Birmingham age-herald., 1913-02-07
Expected to Bring About
S100,OO0,000 Into the
Nations Golfers
SUGAR AND WOOL TO
FEEL THE BLOW FIRST
Duties on Other Necessities Can Be
Reduced Accordingly - How 1t
Would Apply in Different
Administrations
By c. E. STEW AHT

By c. &c. STEWART
Washington February G.--tSpeeiafa-
Speaker Reed. replying to a criticism that
Congress had appropriated over one bill
lion dollars in two years, said "trhis is
a billion dollar country.
When the Payne-Aldfich bill was IN
der discussion every suggestion OF
reduction OF duties of any real impor-
tance was met by the objection, the
government needed the revenue. That
was true. About one-thrd of the total
income Of the United States comes from
customs duties The remainder is made
up by internal revenue taxes aud post
office receipts and incidentaIs
The laying of an income tax under au-
thoiity of article 16 of the federal con-
stitntion win inject a new feature into
the revenue gystem.
Complicates Tariff Situation
II win complicate the tarim situation
and lead to many establishments The
ready answer of Senator Aldrieh that
certain schedule was revenne nro-
dueer will henforth los r
potency. BY a device Is
| capable of raising from 4 dft tsI s.
100000 annually Congress- tlli Is sa a
| to fix tariff schedules a FpsH s
as will most benefit the tt1
The republican party H. 4fa 4f ss
| its scheme of a protectl. arss s5
have no fears about in f4 difiu
| tive duties Indeed tn hsea n
shown any reluctance 10 0a IS
past Democrats aecordls ta fsl5 Ha
ory OF tariff framing. coul lef q ies
for the benefit of the d iea5u
danger because the mean y. "a slak 81
the deficit would be at lts4
Where Will the I. FaH
Tariff duties will here
or lowered as the couni aees
party experience dictate ~
AK going 20 Gall? The it n
the FREQ sugar aiVobat ara ft
getting easy s.A-e
Last year when they iaHH5e
sugar the howl immediateif NzeE tu
that this would lop off 81 faaa seI
Persons Interested in th, as -
nle used the same argiinut nH
low tariff and even the
| terial democrats will now have a good
argument right at hand They viii be
able to insist on their full programme
being carried out Even If II does re-
duce the revenue, IL can be made up by
increasing the tax on incomes.
Popular With Mass of People
The income tax is going to be u very
popular tax with the great mass of the
people Those whose incomes are less
than 5000 per year far outnunber those
whose annual income Is above that figure.
II the government needs more money In
stead of having to revise the tariff. {
all then Will be necessary is to tighten
the screws the man with the IN
come. Mr.. Underwood and the demo-
| cratic leaders face a big problem. There
is no doubt about that. Democrats have
| always insisted that their policy for n
tariff for revenue would entirely eiim-
nate the idea Of protection. They have
always pointed out that any duty at
all WAS a protective duty in senss.
| There are very few free trade democrats
| today in Congress nor are there many
who would favor reducing the tariff
| TO a point where 1t would really cripple
| American industries; but they do think
that the American manufacturer has tn
many case been too highly protected,
and they believe that the general ten
| dency Of the manufacturing interests OF
| the United States is 20 demand protee-
| tion In many cases where none Is re-
quired. or necessary for them to continue
profitable business and to maintain the
present wage scale Of the country's In
dustries.
Estimate Income of $500. .000, 900
! IT is estimated that tax of one per
cent ON incomes will raise a revenue OF
| s1G0,000C00. This will really mean
additional revenue of about $57.odo,0e0 as
approx oximately S330o0,oo0 is now produced
from the excise or corporation tax. and
the income tax will take the place of
the excise tax covering the ground it
covers and going little further. This
would permit the democrats TO write a
free sugar bill. inasmuch as the
enue derived from sugar is about $1,000
90 per annum, and there would still be
$1,000 600 to the good from the revenue
point Of view
IT is conceded, however. that whils
free sugar schedule will undoubtedly
pass the House, such a measure will
not stand the ghost Of show in the
Senate and that the sugar schedule
Will be compromise measure and viii
really be written In conference, Assum-
ing that this IL done. and that the pres
ent tariff on sugar will be cut in two.
sugar will produce a revenue of about
s2e0oOO1 Adding this $26.00O.000 to the
$4,000, 600 left from the income tax rev
enue after II has absorbed the sugar
revenue In full. the treasury will be sii
900 600 ahead Naturally this condition
which is a very simple matter OF mathe
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