New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-04-23
DEMOCRATS FIGURE ON
DEFICIT OF S68,79O,0OO
acknowledgement Tariff Re-
uOrted, with Admission That
Il Won't Meet Expenses.
RELY ON THE INCOME TAX
wovs and Means Committee
Dwells on Cutting Off "Protec-
ton of Profits" and Need
of Foreign Markets.


rr-oo, The Tribune Bureau
ur.sbinrton. April 22.-Outlining new
- ,olicv for the government under
80, tho income tax is TO make up
'.sc,,s I'm revenues. the Democrats Of
.,.. 1yavs and Means Committee reported
-ho House to-day the Underwood tariff
Am as adopted last Saturday In caucus.
,t.,ob NJ the report is devoted to mat
rs covered in the analysis offered when
.,o bill was first introduced while de-
lid oxDlanation OF the income tax di-
ids bonors with a caustic criticism OF
~ penublican theory OF protection.
soaring the Payne Jaw. the Democrats
declare that expectation OF redress was
,lostsd by the tariff act OF 1902 and
,bo nresent high rates do not represent
,bo views Of the people. The majority
Names the Republican tariff. not only for
.be growth Of monopoly and the I'M
scientifc management in many mills ana
f,c,ories. but for the high cost of living.
Tho Democrats maintain all this will be
.harged under the Underwood bill. with
,ts competitive tariff"
Prior 10 the report OF the bill the Ke-
,ublican members Of the ways ana
Means committee were called I'm and al
lowed an eleventh hour opportunity to
vote against the measure The six Re-
,,h,icans and Representative Murdoch
progressive. REGISTERED their futile votes
.oo,,et the measure. Debate on the bill
will begin i'm the House tomorrow. ana
hal :
passage.
democrats estimate that the receipts OF
the government for the first year follow
ing the enactment OF the Underwood
nil, Will be SIS. 80. 900 less than the dis
brrsements This is partly attributable
n extravagant Democratic appropria-
lions. although the report does not so
state
s70.125, 600 from Income Tax.
II is also estimated that the income tax
will produce SOl25.OoO in revenue, ana
that the customs receipts from the In
derwood bill will be S7ss6cO0 less than
under the Payne law for 1912.
The Democrats allege that protection
has been carried to such point "as 10
mt business into an artificial condition
and 10 induce the upbullding Of many es-
ADJUSTMENTS not needed. and so IN
economically conducted as 10 preclude
them from doing business. except by
virtue OF special favors granted them by
government action"
The report submitted by Chairman IN
derwood. after outlining the operations OF
The proposed income tax, says
The revenues from all income taxes
readily respond 10 changes OF rates. and
the latter can be raised or lowered within
few DAYS time without business dis
turbances such as general tarih changes
occasion. il is believed that a budget or
other effective system by which congress
may be able closely 10 calculate and de-
,ernine in advance forthcoming ex-
nenditures will soon be devised. In which
event il should become easy TO MAINTAIN
a close balance between expenditures ana
revenues, such as 10 pIaetised IN most
other civilized countries
With other sources Of revenue revised
10 an honest and fixed basis. and the in
come tax a permanent part Of our revenue
system and at all times afordlng sun
stantal amount Of revenue. congress
could. and If necessary should, annually
raise or lower the income tax rates IN
such manner as would prevent either a
3efct or a surplus IN the Treasury. This
combined tax system would afford justice
IN taxation fexiDihty and stability or
revenue and rigid economy in eXpendi-
ures'
Cost Of Production Disregarded.
The Democrats, Quitting their policy In
the preparation of the bill announce an
absolute disregard for the cost Of produc-
ton theory as regulatory OF tariff rates.
and declare that in the pending bill they
have attempted:
ITO eliminate protection OF profits and
to cut of duties which enabled Industrial
managers to exact bonus. for which no
equivalent is rendered.
TO Introduce In every line OF industry
competitive tariff basis providing for
substantial amount OF importation, TO the
end that no concern shall be able to feel
that II has a monopoly of the home mar
ket gained other than through the fact
lower prices than others.
Which IS the wiser course for the gov
eminent 10 take" the report asks the
one that demands the protection or
profits the continued policy OF dollhouse
growth Of our industries-the stagnatioh
Of development that follows where COM
petition ccases-or. on the other hand
the gradual and insistent reduction OF our
tariff laws 10 a basis where the American
manufacturer must meet honest coppet-
ton, where he must develop his business
along the best and most economical lines
where, when he fights at home TO control
his market. he is forging the way in the
development Of his business 10 extend his
trade in the markets Of the world? In our
Judgment the future growth OF our great
industries lies beyond the seas
A detailed table is presented. showing
by schedules the total revenue secured
under the Payne law for 1872 and the