The Bridgeport evening farmer., 1913-04-23
CUT IN COST OF LIVING
Effect of Income Taz-sIash of
 SsOO, 100000.
CBy Clyde Fl. Tavenner. Member of
 Congress.)

(By Clyde Fl. Tavenner, Member of
 Congress.)
 Washington, April 2sy-An frnme- diate cut of $500, 100000 in the cost of ltv1ng-eventuauy sIa@h of half a bilHon! That is what the Demo income tax will do for the American people. The relief promised by the Democratic party for the terrible pressure of the cost of the necessities of life seems to be at hand. Only experience will reveal the full benefit to the public of the Income tax. The annual saving over the coun- ters of the nations grocery stores. butcher shops and clothing emporium is expected ultimately to reach S5OO,- 100000. Some of the more sanEuine regard even this estimate a. too con seryat1ve. The saving may Teaeh $6OO, 100000, or even more. The estimate is reached in thfB way:
 From British income tax expert ence tables, the experts figure Ghat the annual revenue to be derived from income taxation under the terms of the pending bill will be from ESQ., 100000 to $100, 1000, 1000. In writ ing the new tarin rates the Ways and Means Committee has taken cogmf- zance of this probable revenue and has lopped off duties on necessities which under the present Payne-Al- 0Tbcfl AbW aBBE6BALb VDVsbytfVVV tIl- nua1ly. This iS50O00, 900, now paid by the people in the cost of living, is to be paid out of the income tax reVo- nue.
 But every dollar saved in tariff amounts to five or six dollars in the final retail prices paid by the con suner. This fs because tho many middlemsn who handle an article from the stage of raw material to that of finished product each assesses as profit certain percentage of the val ue of the commodity he handles. But in assessing this profit he includes the tar1R in the value of the com modity. Thus the people pay not only the tariff but also pay profits on the tarif. Every dollar of fncreas- ed price for the raw material aSsess- cd by the tariff becomes i've or six dollars by the time 1t reaches the consumer.
 Representative Corden Hull, of Ten nessee, the member of the Ways and Means Committee who drew the in- come tax provision, prophetically sees the day when all government revenue will be derived from just two pFin- cipal forms of direct taxa&lon-the income tax and the inheritance tax
 ''The rates in the pending bin are but tentative" he said. They can and will be changed by succeeding congresses.
 "The measure is designed 70 ut Tn with the budget system of estimating government expenses. They day will come when government expenses will be appropriated for in an annual bud get bill On the basis of this the amount of revenue needed by the gov ernYnent for the succeeding year will be estimated. In order to raise just the revenue needed. Congress will set the income tax rates to fit the case. There will be few customs duties. There will be, however, an inherf- tanoe tax to relieve some of the tax burden on incomes"
 The estimates of the Ways and Means Committee show vividly how wealth has concentrated in this coun- try Although incomes of as low c.s e4,O 900 per year will be subject to tax ation, yet less than one per cent. of our total population is affected by the hgVT