The Washington herald., 1913-04-23

paper, p to II; sundries "a to 80 lin
crease).
1t Is estimated the amount of dutia-
BILE importations under the bill would IN
crease in value from $759, 209, 915 to $'9s,-
$4,000 The average duty under the
Payne law is 4O.12 per cent, as against
an estimated average duty under the Un-
derwood bill Of 29.60 per cent
Under the income tax law ii Is esti-
mated that 200 incomes, including cor
porations as well as individuals, will be
taxable. The greatest amount Of reve-
nue. according to the calculations, VIII
be derived from incomes within the range
of $4,000 to 100000. Over 100 incomes
taxable at 1 per cent as well as on :
and per cent surtaxes, are included In
the reckoning. The income from the tax
on these immense incomes VIII orins III
all told S5,S26, 600. The committee estl-
mates thae l26,C0O incomes between $1,000
and 5000 will be subject to the per
cent tax yielding $S3o,00o. According to
the estimates, however. the greatest
number of taxable incomes will be With
in the range from 5000 to $4,000 These
will yield to the government, II the eX-
pectations of the committee calculators
are borne out by experience. $5,Sio,Ooo.
The income tax, says the committees
report. furnishes an easily collected, cas-
operate the government, and possesses
the virtue which g tariff system does not
possess of being raised and lowered
quickly to meet new revenue necessl-
ties without proving an embarrassment
or disturbance to business.
budget System Plans.
eft Is believed that a budget or other
effective SYSTEM" the report continues,
by which Congress may be able closely
to calculate and determine In advance
Forthcoming expenditures, will soon De
devised in which event it should De easy
IN maintain a close balance between ex-
pendItures and revenues, such as is prac-
feed i'm most other civilized countries.
With other sources of revenue regulated
TO an honest and fixed basis. and the IN
come tax permanent part OF our revenue
system and at all times affordinS sub
stantiaI amount of revenue, Congress
could and if necessary, should. annually
,aise or lower the income tax rates In
such manner as would prevent either a
deficit or surplus in the treasury The
combined tax system would aHoro justice
in taxation, flexibility, and stability OF
revenue and rigid economy In expenhi-
lures
The report calls attention to the increase
in the cost of living since the Dingley tar
ment of industrial combinations or trusts.
The protective system of the last decade
is blamed for these conditions and also
for a too rapid diminution of the natural
resources OF the country.
The tariff has been so high that indus
try has been actually impaired, according
to the report.
The committee says it has strivcd 10
out the highest tariff burdens on the lux
,lries and remove the necessities OF HE
from taxation as far possible.
The theory of regulating the tarih &C.
cording to the difference in the cost OF
production at hone and abroad Is a bad
one. the committee believes. because II
is impossible to get any reliable data
which will show what the real difference
is.
The committee, according to its declara-
TONS has framed the ne wtarin with two
underlying facts in mind as. follows:
To eliminate protection of profits and to
cut of the duties which enable Industrial
managers to exact a bonus for which no
equivalent is rendered.
To introduce in every line of industry a
competitive tariff basis providing for
slIbsta ntial amount of importation, to the
end that no concern shall be able to feel
that it has a monopoly of the home mar
ket gained other than through the fact
that il is able to furnish better goods at
lower prices that the others.