The Washington herald., 1913-08-30
Insurgents Want
INCREASE in TAX
Some Senators Would Put a
Larger Rate on Big
Incomes.
NEW CAUCUS MAY RESULT
Recalcitrant Solons Charge Bad Faith
Because No Attempt Is Made
to Raise Percentage.

normal taX-on that portion of the in
come up to $4,000.
If these new rates are adopted a mar
with an income of 100000 a year would
pay l per cent normal tax on the portion
! OF his income up to $4,000 and the fol.
lowing additional sur taxes: l per cent
| on the portion OF the income from SO, ,00(
to $4,000; ? per cent on the portion from
$4,000 to 100000: 3 per cent on the por-
tion from $lOO, 900 TO $780, 900; 4 per cent or
| the portion from $4,000 to 500, 900. and {
per cent on all incomes over 10000
I There also may be changes in the rates
affecting the small or lower incomes. A
| new system OF graduation is likely to be
proposed on incomes from 1900 to SO, 0OC
a year. The bill at present levies a fiat
rate Of l per cent on all incomes from
5000 to $4,000. Incomes under 5000 a
year are exempted.
Some Charge Rad Faith.
The Democratic insurgent movement
| was still strong yesterday. Democratic
| leaders are trying to avoid a new caucus
on this feature of the tariff bill, but il is
not likely they will be able to do so. Tha
insurgents in the Democratic membership
insisted that a caucus would be called on
Monday. Some of the insurgents were
charging bad faith. They say that II
was the distinct understanding in the first
party conference when the bill was favor
ably acted upon that It was to carry an
increased tax on the higher incomes, or
that an amendment of that character
would be proposed by the Senate Finance
Committee on the floor.
Democratic insurgency was voiced by
Senator Hitchcock of Nebraska just
after the Senate met yesterday in a
speech condemning legislation by party
caucus. He was speaking in support OF
his amendment on placing a graduated
tax on production when it reached the
proportions of monopoly. Mr.. Hitchcock
proposed such an amendment in the
caucus, and when it was rejected and
his party associates refused to concede
to him the right to offer it on the Senate
floor he walked out of the caucus. Yes
terday he insisted he had done right.
The only other feature of the day which
was devoted exclusively to the consid-
GRAFTON of the income tax and proposed
amendments was a fight over the pro-
posal in the bill TO appoint by the spoils
method the clerical force, including dep
uty revenue collectors to administer the
law. The Republicans resisted the plan
OF eXemptinE these appointments from
the civil service amendment and pro-
posed amendments of various kinds to
put a limitation on the spoilsmen, but
they were all voted down by a strict
party vote.
Return to spoIIs systen.
The Democrats even rejected an amend
ment by Senator McCumber to require
the appointees to pass an examination to
show their efficiency. AS the hill was
agreed TO yesterday the Senators and
Representatives will recommend the ap-
pOintees to administer the income tax. It
is a plain return to the old method that
prevailed before the civil service law was
passed.
Senator Lodges amendment to strike
out the proviso which required that the
appointment shall be made under the
spoils method was rejected by five ma
jority. Then Senator Gallinger offered
an amendment providing that the ap-
pointees should be selected under the
civil service law. This also failed by
FIVE majority. Senator Cummins moved
that when these appointments were made
the appointees should not be passed into
the civil service under an executive or
der. without examination. The Demo-
Gratis voted that down by eight majority.
These were the principal votes taken
on the income tax bill yesterday, aside
from the vote by which Senator Hitch
cocks amendment was lost. which was
by a vote of Al to 30. The only votes
cast for the Hitchcock amendment were
Republican, outside of Mr.. Hitchcock's
vote Four Republicans voted against
him-Smoot, Mclean, Colt, and Sherman.
Just before the bill was laid aside yes
terday evening Senator Norris introduced
an amendment providing for a tax on
inheritances, which will be considered
later. The Senate will have to return to
- - 81 Ef1~W- -n-al
features Of the bill which we're recon-
mitted, and so the amendment offered by
Senator Root, which provides that the
tax shall apply only to incomes accru-
ing after the law goes into effect, which
involves a constitutional question.
Amendment by La Toilette.
The feature of the day was Senator
Hitchcock's speech, in which he declared
his independence of caucus rule. While
admitting that a caucus to secure party
unanimity on the schedules and rates
was necessary evil" the Senator de-
clared that on the provisions for rails
ing revenues and regulating business,
such as the income tax, Senators ought
to be freed from caucus control
While the income tax section Of the
tariff bill has been gone over by the
Senate, many important features of it
were either recommitted or passed over
for future consideration.
Among the amendments agreed to yes
terday was one offered by Senator La
and accepted by the committee,
which enlarges the right of inspection of
the reports of corporations made to the
of Internal Revenue un-
der the corporation tax law, by which
the tax officers of any State in the Union
ray have access to the returns made by
on a request from the Gov |
arnnr of the State.