The daily banner. (Cambridge, Md.) 1897-2008, 1913-01-29
THE INCOME TAX
PLAN IS READY
Democrats to Make 1t Part OF
Tariff Revision
HULL WILL PREPARE Bill

Mil Renew Excise Tax Plan If States
Fail to Ratify Income Tax Amend
ment
Washington. Jan. ga feature OF
the tariff revision program of the ex
ira session of congress may include
the raising of $100, 100000 from an in
come tax, including the corporation
tax, as part of the $300,000,000 basis
of revenue from the tariff.
Representative Hull, of Tennessee,
q Democratic member of the commit
tee on ways and means, who has been
active in income tax problems, plans
to introduce a bill which would pro-
vide such source of revenue.
This would be considered by the
committee in connection with contem
plated early ratification of the consti
tutional amendment to sanction in
come tax legislation. Of the necessary
number of states required for ratifica-
ton only two are lacking. Mr.. Hull
expects these to be drawn from New
Jersey, Wyoming, New Mexico or West
Virginia, or from Florida, whose legis'
latture. however, will not meet until
April
The Democratic majority Of the COM
mittee favors an income tax, but in
the event of failure of ratification will
renew the excise tax plan as an ex-
tension of the present corporation tax
law.
With only few witnesses left, the
ways and means committee OF the
house went on to clean up the hear
ings on schedule K" wool and wool.
ems. admittedly the storm center of the
tariff question of the coming extra ses-
sion of congress.
In the hearings SO far it has been
indicated that the Democrats intend to
revise the wool tariff along the lines
of the wool bills of 1911 and 1912. We.
toed by President Taft.
This was the measure that was so
bitterly denounced by William ]. Bry-
an, who advocated free raw wool, and
charged that Underwood in imposing a
duty on the produce had gone over to
the protected interests"
Unless President Wilson should in
terfere the Underwood revision will
be reintroduced in the new congress
with few, if any, changes. By the time
the new congress Is called in special
session Bryan, as member of the cab
met, will not be In a position to scold
congress- on the tariff or anything else
Without the support Of his chief.
Ig4 fox =
duty Of 30 per cent on woods, the rates
on, manufactures of wool averagine
about 33 per cent, as compared with a
duty of 35 per cent on the raw pro
duct, and rates on manufactures run
ming from 80 per cent to more than
100 per cent in the Aldrich-Payne law.
Democrats privately say that their
wool rates are protective, although
such protectionists as Senator La Fol
lettte are not in accord with this view.
Mohair, used in tthe manufacture of
clothing for felt, pushes and other
purposes bids fair to be reduced from
40 per cent to 20 per cent ad valorem.
Johnston Robertson, of Del Rie, Tex,
an Angora goat producer, pleaded for
q specific rate of IL cents pound
equivalent to the present 40 per cen
duty.
Chairman Underwood pointed ou
that it was the raw material for great
Industries and, although now luxury,
1t was every day becoming more of
necessity.
Representative Longworth. of Ohio.
and Frank P. Bennett, of Boston, a
witness, had lively tilt. Mr.. Long
worth accused Mr.. Bennett of evading
answers, and Mr.. Bennett retorted that
evidently Mr.. Longworth's constituents
had not thought much Of his services
referring to his defeat for the next
congress.