New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-08-29
Senate Democrats Determined
to Increase Rates on Big
Incomes to Five Per
Cent or More.
LODGE IN STRONG PROTEST
Contends That Men Should Not
Be Punished Merely Because
They Have Succeeded in
Accumulating Money by
Intelligent Thrift.
From The Tribune Bureau.

Washington. Aug. 2S-Open revolt
in the ranks OF the Democrats OF the
Senate caused the majority leaders to-
day to issue hastily notice that another
caucus will be held TO take up the
question of increasing the rates Of the
surtax upon large incomes.
4 large number of Democrats arc dis
satisfied with the provisions Of the in
come tax section, and take the view
that the wealthy men of the country
should bear larger prOportiona'e
share of the expenses of government
than is required Of them by the bill as
il now stands.
IL is understood that Democratic
leaders have agreed TO "A revision OF the
income tax section. so that the extra
tax on incomes of more than Sloo."p
will he per cent. with an increase
reaching 10 per cent on incomes oi
500. 900. The bill as 1t now stands
provides only 3 per cent tax above
100000. The present rates on incomes
between $4,000 and 100000 also will
be increased.
Revolt at Rollcall.
Revolt broke out when the roll was
called on Senator La Follette's amend
ment proposing rate as high as 10
per cent on incomes Of more than Sln-
600. Senator Vardaman voted for the
La Toilette amendment and senators
Ashurst. Thompson and Reed an
nounced that they would give their
support to the Democratic bill as now
framed only upon the assurance thai 1t
would be changed.
Il have Leen assured by leading
members of the Finance Committee,
said Mr.. Ashurst. that change
would be made from the present condi-
tion OF the bill 10 meet the demands
of the situation as they ought 10 ne
met SO that incomes over 100000
year I be t-xed properly"
Other Democratic Senators sought 10
explain that their vote was cast against
the amendment under the same condi-
tions Tie Democratic leaders sought
TO stem the tide of dissatisfaction after
a hasty cloakroom conference, by an
nouncing that a caucus would be hcld
not later than Monday 10 consider this
question.
The La Toilette amendment was de-
fcated by a vote Of 43 TO Il. An
amendment offered by Senator Bristow
imposng a graduated surtax Of !. per
cent on incomes on each $1,000 up to
100000 received solid Republican sup
port and was defeated by the mar
rover margin Of 80 10 SO.
After the furry over the rate OF sur
tax had passed Senator Lodge began
general discussion Of the problem, sus-
gesting that the income tax should not
be applied either in the way OF pilIag-
ing or Furnishing any one class.
Confiscation, Says Lodge.
There is a question raised here by
the income tax" he said. which is TO
nv mind far more important than the
question of differentiatinS between the
earned and unearned income. That IS
making the exemption limit too high.
When taxes are imposed simply TO take
money T. ON man because he is rich
and for no other reason the party that
would do it would cease TO be demo-
cratic and would become a party Of
communism and perhaps something
worse. 1t will be an i'll day when we
enter upon confiscation instead Of taxa
ton.
mo tax can be perfect, but it should
be the effort of the government and the
taxing power to impose the tax. If IT be
on incomes, TO obtain the largest pro-
portion from those who can bear 1t
best. But let us beware how we enter
ON taxing on the ground that we want
TO punish somebody because he has
money.
"If he has earned the money I'M
properly he is a subject for punish
ment That is a wholly different thing.
But when you have the government:
undertake, for NlndlctlNe reasons, 10
punish a man because he has sue
ceeded and because he has accumu-
lated property by thrift. intelligence
and character. or inherited it honestly
under the law, it is entering upon
dangerous path. 1t would change this
law from the imposition of tax to the
pillage Of "A class.
II know the present tone is that any
man who has money is prima facie a
criminal; that any man who has been
successful falls under suspicion. But
there has been in this country for
many years, and there is to-day, in IN!
Judgment. great deal Of success hon
cstly won.'
DIES WITH TUBE IN THROAT