The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1913-07-26
INCOME TAX ANALYlED.
SENATOR BORAI DISCUSSES
PLAN TO REACH TAX
DODGERS.
He Says Income Tax Is an Effective
Restraint upon the Extravangance
of the NatiOn-OppOsed to Taxation
of Incomes Less Than 5000.


cussion Of the proposed new income
tax came for the first time in the SEN
ate today when Senator Borah began
an analysis of the income tax provis-
ion and a comparison of this country
with England, France and other ma
tions where immense revenues are
obtained by direct taxation.
This was the first break in the pro-
gramme of tariff rate discussion which
began Saturday. 1t followed the con-
cluding address by Senator Smoot
who for two days had analyzed the
new rates and duties of the Under
wood-SimmOns bill and had criticized
the measure because of it's departure
from the protective policy and be-
cause Of it's alleged inequalities.
Senator Borah's address, to be con-
tinued tomorrow, held the close at
tention of Republicans and Democrats
throughout the hour he had the floor.
he declared an income tax, to be an
effective restraint upon the extrava-
gance of a nation, should be distrib-
uted over the small incomes, so every
citizen would feel it's effects Because
or the great burden Of indirect taxes
borne by American citizens, however.
senator Borah said this principle
could not be applied in the United
States. On the contrary he urged that
the $4,000 exemption fixed by the sem
ate committee be raised to the $4,000
figure fixed by the house under the
leadership of Chairman Underwood.
Under this income tax provision
there will be no relief for those who
ought to have relief" said the sena-
tor. 1T will be a new source of reve-
nue. but the old source. the indirect
tariff and internal revenue taxes. still
Will be worked to the limit. Until
there is a reduction in the revenue
from these other sources, this simply
would be an additional burden. II
simply will be another means Of OBJ
tanning revenue to crafty our scan
dalous desire to spend money"
Less than per cent of the Amer
lean people have incomes of more
than $4,000, Senator Borah said. The
income tax burden should fall upon
those wealthier citizens he declared
rather than upon the poorer man al
ready paying a heavier tax through
tariff and internal revenue channels.
Senator Bristow interrupted to urge
that the graduated tax be increased
more heavily on the larger incomes.
He suggested tax as high as 10 per
cent. on incomes of 100000 or more
The time has come in. this coun-
try" argeed Senator Borah, when we
can levy the expenditure and extrava-
gances Of the country upon the prop
erty Of the nation. These vast for
tunes have got to take care Of the ex-
! peditures." --
More than sevcn-eights of the rev.
enuse OF the government still would
be collected through indirect taxes.
the senator added, even with the new
income tax in operation.
Concluding his day speech, Sem
ator SmOot devoted considerable at
tention to the pottery tariff rates.
which he maintained were far too
low. He declared the transportation
question was great problem and
that there were crockery rates to Salt
Lake City from England that were
lower that the rates from Ohio. SEN
ator Cummins rose to refer to a bill
introduced by him which would pro-
hibit railroads and other carriers from
! hiking proportionate rates on COM
blned foreign and domestic hauls low
er than domestic rates
domestic products" said Senator
Cummins, are in many instances de-
MED adequate protection and they are
compelled to pay from one third to
one-half more than their foreisn n
rivals for transportation over their
own railroads. Such condition is alb
solutely indefensible. To remedy this
will need Legislative enactment which
l intend to press with all possible
vigor."
Senator Borah will continue his in
come tax speech tomorrow. Several
other speakers are ready but the bill
may be taken up at any time for
amendment. The Democrats made it
clear today that they do not propose
to take much time for general debate
confining their talk to opposition to
amendments.