The Barre daily times. (Barre, Vt.) 1897-1959, 1913-07-05
INCOME PROVISION OF
TARIFF DEFENDED
Representative Mitchell Palmer Of Penn
sylvania Says 1t Always Will
Form Part of U. S. Fiscal
System.

| Cape MAY, July 5.-Declaring that in
future an income tax of some kind viii
always form part of the fiscal system
Of the United States, Representative
A. Mitchell Palmer, OF Pennsylvania,
chairman OF the House Democratic eau
Gus, last night defended the income pro-
vision of the tariff bill before the Mary
land Bar association in convention here.
Mr. Palmer first took up that fea
ture Of the bill which he said was the
one that had met with the greatest OBJ
iections from business men and corpora
tion managers as entailing upon them
the burden of tax collection. In an
swer, he declared in substance that the
large benefits TO the government far out.
weighs in the minds of those responsible
for this legislation the annoyance to
business men.
Where the income of person is thus
paid at the source" said Mr.. Palmer.
"the benefit of the 1000 exemption will
be allowed only where notice claiming
the exemption, accompanied by an affida-
Wit. shall be served within the time speci
fled by the law upon the person required
TO make such payment at the source.
~ Is the UtilfI VI lut tidHlNiH VI tut
bill that this provision. while, Of course,
requiring large number Of persons TO
act as tax collectors for the government,
will not result in any unfairness, in
justice or hardship"
Corporations and other business men,
he continued, usually conduct their bus
mess with such system that the returns,
after they have become familiar with
the requirements of the law, will be
made without serious interference with
the usual course of business. Under the
system adopted, Mr. Palher said, it was
TO suppose that much OF
the tax, justly due, would escape the
collectors.
"A couple of years experience" con-
tinued Mr. Palmer, Tin the operation of
the law will reduce the mountain which
business now sees on the horizon, to a
mere mole hill. 1t viii be just as easy
for corporation, in paying the inter
EST upon its indebtedness, to pay to the
party entitled thereto ninety cents |
IN the dollar and retain for the govern
ment the remaining one cent, as it now
: for it TO pay one hundred cents to the |
holder of its obligation.
when a coupon on bond payable |
o bearer is presented to the corpora
ion direct from the owner, the with |
lolding of the tax will be easy; where |
he coupon is deposited with bank I
or collection. it will be equally free
rom difficulty. 1t is only where the
oupon is sold to another or used in
rade. before presentation to the oblig
n. that the operation of the law becomes
Even then, it is not diff
ult, for the holder of the coupon, if
taxable person whose income is suffi
iently large from other sources, to per-
nit him to secure his legal exemption
nd deductions elsewhere and show them
n his personal return, win use his cou-
on just as he does now, except that
rhen it leaves his hand he will receive
or it ninety per cent. of its face
alue.
''If, however, the taxable person de-
Tres to secure his exemption out of the
lterest represented by the coupon, or If
is income from all sources shall not
each 1000, he will attach to his coupon
notice and affidavit whereupon his
oupon will pass at its face value"
Mr.. Palmer discussed the exemption
.ature of the law, which he said had !
cen condemned in toto by many critics !
the measure, "on the principle that
very person having an income should
av his due share of taxes for the sup
ort of the government, and that the
,alizing sense of his responsibility fast =
ned upon his mind by the payment of !
,ch tax would operate to inspire the ,
tizen to enforce rigid economy in the 7
Jpenditure of public moneys IL
"In the first place" continued Mr.. +
almer, there is point in the size 9
an income, below which the expense /
collection would be greater than the L
mount of the tax. The government n
ould derive no benefit from such a tax j