The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1913-06-28
CHANGES IN INCOME TAX.
MADE TO MEET
OBJECTIONS TO TARIFF
BILL.
hOre Classes Given Exemption
Extra Provision Made for Children
bill Expected to Stand Until IL
Reaches Caucus.

overcome most of the objections Of
fered by foreign nations were agreed
upon in tentative way today by the
Democratic members of the senate
finance committee. The income tax.
under the new plan, would apply to
individual incomes of $4,000, but
would make important exemptions for
individuals, municipalities, civic
bodies and mutual insurance COM
panies.
Changes in the administrative sec
uons include a new provision giving
the president authority to increase
tariff duties against certain foreign
articles coming from countries that
discriminate. against the United
States
The proposed per cent concession
in tariff on goods brought in Ameri-
can ships; the anti-dumping clause,
and the provision giving United States
authorities ''inQuisitOrial powers" to
examine books of foreign manufac-
turers when the valuation of goods
is in dispute were stricken out. These
provisions brought protests from
many foreign nations
Democrats of the senate made it
clear today that some further changes
might be made in the income tax
and administrative sections before
they were reported to the senate cau-
Gus, but the revised sections as made
public today are expected to stand
with but little alteration until the
caucus reaches them.
Senate Democrats in caucus oh the
bill spent the entire day on wool and
sugar. Just before adjournmenl to-
night Chairman Simmons or the
finance committee secured an aGree-
ment to vote upon both sections be-
fore 4 o'clock tomorrow. No amend
ment to the free wool provision has
been offered, but the majority sena-
tors will have an opportunity to cX-
press their opinions on two sugar
amendments.
Senator ShafrOth offered an amend
mcnt to fix the rates at the end OF
three years at about 1-2 cent a pound
instead of the free list provision now
i'm the bill. Senator Thornton offered
the second amendment to provide
that the rates remain as they are in
the Paync-Aldrich act.
1t was regarded as probable tonight
that the anti-free sugar men would
get together tomorrow before the vote
is taken to decide to concentrate their
support behind one amendment if the
other Is beaten. Leaders of the ma
jorty were confident that despite the
oratdry against free sugar it would be
retained in the bill and that only the
Louisiana senators would be found
opposed to it when the measure reach
cs the senate.
Under the proposed new form of
tiOn Of $1,000 would be allowed to
married persons with dependent wives
or husbands not taxable under this
law; $500 would be added for each
minor child dependent upon one taxa
bic parent. In case of both parties be-
ing taxable, however, no exemption
In oh
Other important changes in the
pla" include the exemption from taxa
tion of that portion of the premium
collected by the mutual life or mutual
marine insurance companies which
may be returned To policy holders i'm
the form of dividends. The taxation
o; this portion of their incomes had
been bitterly opposed by the insur-
ancc companies. The Underwood bill
haG exempted only mutual fire in
Stl+nCc companies on this basis.
Chambers of commerce, civic bodies
and cities. counties and States are ad-
dcd to the class of organizations
whose incomes will not be taxable.
To secure the payment Of tax upon
coupons, checks or bills or cXchang-
"S' collected for foreign residents
provision was adopted to require all
corporations operating in foreign com
mcrcc with foreign shareholders to
procure licenses.
The revision Of the administrative
schedule eliminates many of the re
inrmS proposed i'm the Underwood bill
as IT passed the house. The senate
provides for Joint com
mittcc to Investigate the revenue ad-
laws with "A view to
harmoniziug, revising and
coditying them"
This committee could consist of
three senator's to be appointed lay the