The Birmingham age-herald., 1913-08-27
EFFORT iDgaEA ASE
LIMIT llF IME
TAX Is DEfEATED
Democrats Vote SOlidIy
Against the Amendment.
Schedule Reached
Unexpectedly

Washington. August 26.-Attsmpts t.
Increase the limit Of the proposed in
come tax on the larger incomes failed
in the Senate today when senators
Borah, Bristow and Cummins led an eff.
fort to amend the income tax section
of the democratic tariff bill
Senator Borah offered an amendment
increasing the graduated tax on larger
incomes until it would have reached >
per cent on those above 100000 a year.
The democrats, aided by 10 republicans
defeated the amendment, AZ to Il.
more radical provision with d
maximum tax of 10 per cent on incomes
of 100000 or more Will be submitted
by Senator Bristow when the debate is
resumed tomorrow.
Present Rates
In the pending bill the rates on
larger incomes are:
One per cent on incomes from $780,
600 TO $4,000; 2 per cent from soO,-
600 TO 100000, and 3 per cent above
| s1O0.0 900.
Senator Borah proposed tho follow
ing additional taxi"
One per cent on incomes from s10
600 to $4,000; 2 per cent from $780,
| 600 to s50.00Q; per cent from $780,
600 to $4,000; 4 per cent from $780,
600 to 100000, and per cent above
$1O0, 600.
The democrats voted solidly against
the increase and We're joined BY Sen
ators Clarke, Wyomingj Galliuger. Lip
pitt, Lodge, oliver. Penrose, Root
Smoot. Warren and Weeks from the
republican side.
Reach Schedule Unexpectedly
The Senate reached the income tax
section of the tariff bill unexpectedly
late in the afternoon, after finishing
the first reading of all the tariff sched-
ules in the bill. The debate is ex.
pected to continue a day or two.
A demand for an increase of the tax
on big incomes was accompanied by
the declaration that men with large in
comes would escape their just share of
the tax under the bill.
THE man with the small income al.
ways pays his tax more completely
said Senator Borah. "than does the man
with the larger income 1t is much cas-
Ter to find all the $4,000 incomes than
to find all the $4,000 incomes A tax
or or per cent on the man with
100000 will not Inconvenience him
more than the l per cent tax will in
convenience the man with S5oO0'
Senator Williams, who had charge of
the income tax provisions for the DEM
ocrat1c side, insisted that the committee
had been compelled to go slowly and
cautiously in inauguratlng the new form
of direct taxation.
I'VE thought it well now to establish
the tax upon simple grounds he said.
Experience alone will show how it works
and the changes that may be necessary in
it. In future the American people will
have representatives here who will revise
and perfect it.'
Senator Root said the plan to tax the
undivided gains and profits sof all cor
porations or partnerships would be rl-
possible of administration He insisted
that these undivided profits We're part OF
a stockholders capital, and not his in
come
Senator Williams said this section would
be gone over again in the committee, In
an effort to make its meaning clearer 1t
was devised, he said, to prevent evasions
of the tax
When the Senate adjourned tonight, it
had 100 or more paragraphs covering tar
iff rates still to dispose Of These are
scattered throughout the various sched-
ules of the bill. Senator Simmons, the
tariff leader, announced that he expected
to conclude the income and administra-
tive features of the measure before re-
turning to the tariff rates still in dispute.
In the meantime democratic members of
the finance committee will attempt to set
tie all points at issue by Saturday or Mon
day.
An attempt today by Senator Brande-
gee to increase the proposed duty on
hats from 45 to so per cent was defeated.
An amendment by Senator Page to in
crease the duty on calf skins and fancy
leather from 10 to IL per cent was defeated
by a vote of 46 to %.