Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1913-04-24

greatest efficiency and greatest economy
This is clearly illustrated In comparl.
son OF the wool and iron and steel indus
tries. Wool has had specific duty that
when worked out to an ad valorem basis
of the average value Of all wooden goods
Imported into the United States and the
duties imposed have remained practically
unchanged for 40 years. During that
time the wool industry has made compar
atvely little progress in cheapenlng the
cost Of its products and improving Its
business methods.
"On the other hand in the iron and
steel industry the tariff rate has been cut
every time a tariff bill has been written
Yet the iron and steel industry has not
langulshed."
In series Of tables the report showed
that the articles dutiable under the
Payne law, and placed on the free list by
the Underwood bill, in the last year
yielded n revenue of S24 .G9S.22G on i'm
ports of s1O2, 402.570. The committee
took from the present free list and levied
duties against articles which it is esti-
mated will yield S4,647,055 revenue on
$40, 50j,51O during n 12-month period
under the Underwood bill.
computation Is treasury experts pre-
scented In the report shows that the gov
eminent revenue from all sources in 1912
was S93S, 800. 4S1. and the government cx.
pendlturcs S001 2o7. o7o. leaving a surplus
oc S37. 224 500. The estimated revenue
from all sources for the first year under
the Underwood bill is 5000. 100000, and
the estimated expenditures 1904. 100000.
with n treasury surplus of s1.335,OOO this
would leave deficit to be raised by the
income tax amounting to s6S,79o, 600
The earning power Of the income tax the
first year of it's operation is fixed by the
report at S70.125,ooo
INCOME TAN TABLE.
In its estimate of the amount to be
raised by the income tax the committee
presents n table showing that 100000 in
comes between $4,000 and $1,000 will pay
$500. 600 tax: 17S.OOO incomes between
$1,000 and $4,000 will pay S5.34O.OoO
$1,000 incomes between $4,000 and S1j.-
900 viii pay S4,2lo.OoO; 1900 incomes
between $4,000 and $4,000 will pay
S31S1.O0O 10000 incomes between 500
coo and $4,000 will pay S21oOOOO; 81
O0o incomes between $4,000 and $50. 900
will pay So.66G.oOO $500 incomes be
tween S5O,ooo and 100000 will pay Sill
100000: 100 incomes between 500. 600
and S250.0O0 will pay S11,65O,OO0; so
incomes between S25OOOO and $500. oO0
will pay S6T43 900 $50 incomes between
$500. 600 and 81 oO0O will pay $9.1o1.-
coo and 100 incomes of over S1,oOo.o00
will pay S5s26.oO0; total of $4,000
incomes to be taxed s7O.12j.0oo.
The report says that the income tax is
included ''in response to the general de-
mand for justice in taxation and the long
standing need of an elastic and produc-
tive system of revenue"
I'm connection with our legislative
work Of readiusting the old and adopt
ing a new fiscal policy" the report con
tnues, Congress should eliminate the in
CAPABILITIES and abuses Of the existing sys-
TEN of tariff taxation, reduce the customs
rates to sound revenue basis, and levy
an income tax to equalize the tariff bur
dcns and to give elasticity and produc
tivcness to our revenue system
The report charactcrizcs the present
tariff system as "nuctuating. inhcxbc
unstable and oftcntimes unproductive
thus exposing the government to defcN
cirs or excuses with all their attendant
cmharra ssments."
The report declared the maximum and
| minimum clause of the Payne law, Civ
| ing the President the power to impose ad
| ditional duties on the goods of countries
| declining to include the United States as
| a most favored nation" in commercial
adjustments has been a failure. The new
bill strikes that provision from the law
and gives the President the power to ne
! gotiate trade agreements containing mn
| tual concessions with foreign countries
! to be approved by Congress