Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-09-01
COMPROMISE LIKELY
ON INCOME TAX
Proposes Increase Only on In
comes Running Above Quar-
ter Million Yearly.
INSURGENT DEMOCRATS
TO FIGHT AMENDMENT
Senate Resumes Discussion Of Tariff
Bill-Senator Clarke in Speech
Scores Cotton Exchanges.


An increase of the income tax on large
fortunes only when the incomes run
| above $4,000 annually is the basis of a
| compromise democratic members OF the
Senate finance committee will recommend
| to the caucus tomorrow night. The at.
titude of the so-called insurgent demo.
Gratis today was such as to indicate they
| would not accept the arrangement with.
out fight, and the caucus may run two
or three days.
The finance committee members have
decided to leave the rates of the income
tax as at present. up to the two-hundred-
and-f1fty thousand-dollar mark. The new
taxes now proposed. in addition to the
normal tax above the $1,000 minimum,
are: Four per cent additional from $3.50.
600 to 100000: 5 per cent from 100000
to 81 ,0OO,O 900, and per cent above 81 ,OOO
600
The Senate will adjourn at pm. to-
then begin its efforts to agree on the re-
naming provisions Of the bill. It Is es-
timated there are $50 persons in this
country with incomes between $2J0,OO0
and 100000; $50 with incomes between
$SSO,OUJ duu anu moro Iu41l
100 with incomes above the 100000.
Want Insurance Tax.
The committee democrats probably will
recommend to the democratic caucus that
the original provisions OF the House bill
taxing the entire income Of mutual in
surance companies be retained. The
finance committee had recommended the
- ~ ~ Co.
returned to policy holders in the form Of
dividends.
Attacks Cotton Exchanges.
The Senate started today on the weary
task Of completing the tariff bill with a
speech by Senator Clarke on the amend
ment imposing tax on transactions in
cotton where no actual delivery Is in
tended. Senator Clarke declared that
the rev York Cotton Exchange land
it's parasite the New Orleans exchange,
are no more than gambling institutions.
and that those who speculate in cotton
upon their floors are engaged in q who'll
ly selfish and illegal business. New York,
he said, Is the chief offender, and me
New Orleans exchange only q minor
affair."" The New York exchange, he
argued, controls the price of cotton for
the whole world
II think the New York exchange" said
the senator, lis wholly bad and has no
right to exist. It is q gambling institu-
who goes there to trade"
Senator Clarke said that gambling in
agricultural products had been condemn
ed by the democratic platform adopted
the majority party In Congress must take
steps in conformity with that declaration
of principle. He quoted several author
tiles to show that speculation In cotton
benefited neither the produced nor the
spinner and was merely q practice that
said the actual deliveries Of cotton on the
New York Cotton Exchange was only
one-half of l per cent OF the sales.
Would Bring No Revenue.
One Of the democratic leaders Of the
House today ridiculed the estimate
made by the Senate finance committee
that the tax on cotton futures would
bring in a revenue Of 100000 and
more. He pointed out that the object
of the tax was to prohibit sales Of
cotton for future delivery when no de-
livery was to be made. II this end
were accomplished. he said, naturally
there would be no revenue whatever
derived from this tax.
Tax on Large Incomes.
At meeting Of the majority members
Of the finance committee last night q
final agreement was reached as to the in
creases in. the rates Of taxation which
the committee will recommend on large
incomes. Following the meeting it was
said that the maximum rates on incomes
of 100000 and over had been fixed at 9
per cent It is also understood the COM
mittee agreed upon = graduated tax on
committee also was said to have decided
to stand by the restriction on the impor-
tation Of bird piumage into this country.
Grading Of Rates.
The rates on all incomes under 500.
600 remain unchanged. That is, there will
be a normal tax Of I per cent on the
first $4,000 and surfaces as follows: One
per cent additional on the next $4,000,
and per cent additional on the next
$4,000.
It is understood that the committee has
decided to levy 4 per cent on all incomes
from 100000 to $4,000. per cent on
incomes from $4,000 to 10000 and 6
per cent on all incomes over 100000
These latter rates include the normal tax
Of per cent.
The committee decided to stand by III
amendment In regard to the importation
of the plumage Of wild birds into the
United States.
This section OF the tariff bill has caused
lot of trouble. The Audubon Society OF
New York and other similar organiza.
tions have for years been carrying on q
| fight against the unrestricted importation
Of wild bird plumage into this country
They commended that II 1t IL continued
| bird life In the United States and through
| out the world would be threatened with
destruction.