Clinch Valley news. [volume] (Jeffersonville, Va.) 18??-2019, 1913-04-25
MILLIONS SAVED
TO THE CONSUMER
BY Clyde II. Tavenner, Member of
Congress-.

NOuREeSS.
Washington, April, 24.-An
immediate cut of $500, OOO, 600 in
the cost of living-eventually a
slash of half a billion That is
what the Democratic leaders o f
the House believe the income
tax will do for the Americ an
people. The relief promised by
the Democratic party for the
terrible pressure of the costs of
the necessities of life seem to
be at hand.
Only experience will reveal
the full benefit to the public of
the income tax. The annual
saving over the counters Of the
nations grocery stores, butte her
shops and clothing emporium is
expected ultimately TO reach
$500, coo, 900. Some of the more
sanguine regard even this esti-
meat as too conservative The
saving may reach 5000, 900, 900,
or even more.
The estimate is reached in
this way: From Bristish income
tax experience tables, the eX-
perts figure that the annual
revenue to be derived from in
come taxation under the terms
of the pending bill will be from
$50, 600, 600 to 100000, 000. In
writing the new tariff rates the
Ways and Means Committee has
taken congizance of this prob
able revenue and has Topped off
duties on necessities which I'M
der the persent Payne-Aldrich
law aggregate $50, 100000 an
nually. This $4,000, 600, now
paid by the people in the cost of
living, is to be paid out of the
/ income tax revenue.
But every dollar saved in
tariff amounts to five or six dol
lars in the final retail prices paid
by the consumer. This because
the many middlemen who handle
an article from the stage of raw
material to that of finished prod
uct each assesses as profit a GER
tain percentage of the value of
| the commodity he handles. But
ina assessing this profit he in
cludes the tariff in the value of
the commodity. Thus the people
pay not only the tariff but also
pay profits on the tariff. Every
dollar of increased price for the
raw material assessed by the
tariff becomes five or six dollars
by the time it reaches the con-
sumner.
| Representative Cordell Hull,
of Tennessee, the member of the
Ways and Means Committe who
drew the income tax provision,
prophetically sees the day when
all government revenue will be
derived from just two principal
forms of direct taXation-the
income tax and the inheritance
tax.
THE rates in the pending bill
are but tentative" he said
"They can and will be changed
by succeeding congresses.
1.-The measure is designed t
fit in which the budget system
of estimating government ex
penses. The day will come wher
government expenses will be-
appropriated for in an annua
budget bill. On the basis of this
amount of revenue needed by
the government for the succeed
ing year will be estimated. Ii
order to raise just the revenue
needed, Congress will set tn,
income tax rates to fit the case
There will be few custom.
duties. There will be, however
an inheritance tax to reliev,
some of the tax burden on in
comes.
The estimates of the Ways ant
Means Committee show vivid,
how wealth has concentrated il
this country. Although income
of as low as $4,000 per year will
be subject to taxation, yet les.
than one per cent of our tota
population is affected by the bill