New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-06-22
TAX ON LUXURIES THE
AIM Of SENATE CAUCUS
Plan Is to Increase Rate on
Expensive Foreign Autos and
Reduce It for Farmers.
MACHINE IS WELL OILED
Chemical, Paint, Earthenware
and Glass and Much of Metals
Schedules Approved-In-
come Tax Up To- morrow.
lFrom The Tribune Bureau

From The Tribune Bureau
Washington, June 21-The machinery of
the Democratic caucus of the Senate OPP
Grated smoothly to-day in going over the
tariff bin, as revised by the Democratic
members Of the Finance Committee. With
the exception Of comparatively unimpor-
tant paragraphs the committees amend
ments to the chemical schedule, paints
and oils schedule the earthenware and
glass schedule and a large PAM OF the
metals schedule were approved.
The Democrats OF the Senate Finance
Committee completed all work on the IN
come tax and administrative features OF
the tariff bill late tonight The revised
draft Will be submitted to the Democratic
caucus on Monday The basis of $500 as
the minimum income upon which an I'M
married man must pay a tax was re-
tanned by the committee tonight
The committee changed many provisions
affecting municipal bonds, mutual insur-
ance companies and eXempting chambers
of commerce from the operation of the
tax. Chairman Simmons said tonight
the income tax provision had been rewrit-
ten in many important features. but men,
hers Of the committee declined TO give
out synopsis Of the changes until the
report is prepared for the caucus.
The same tendency that existed in the
House and I'm the Finance Committee TO
reduce the tariff on articles which are re-
garded as necessities and to maintain
tax on the luxuries was manifested by
the caucus. On automobiles. for example,
it was practically decided TO increase the
rate on expensive foreign machines and
reduce stin further the rates on low
priced machines used by farmers and for
commercial purposes.
The Finance Committee Democrats had
already cut the rates Of the Underwood
bill from As per cent ad valorem, to 30 per
cent on motor cars valued at less than
$500 Several Democratic Senators urged
a further cut and recommended that the
tariff be only 10 or 10 per cent on ma
chimes valued AT less than N,OP
The caucus did not settle the automobile
controversy, but asked Chairman Sim
mons and his colleagues on the FINANCE
Committee to investigate further. AdVo-
Gates of the lower duty claim the govern
ment would lose little revenue as the
high priced machines pay most OF the
tariff
This same distinction was even drawn
I'm the case OF field and opera glasses.
Field glasses were regarded as a neces-
sitv and opera glasses as luxury. Botn
are put i'm the same class by the House
and the Senate committee. The caucus
to-day ordered that the rates on field
glasses be lowered and that they be put
g. q
The caucus did not reach to-day any OF
the points on which opposition IS expect
cd. The amendment placing pig iron ana
stee. hiHets upon the free list was APP
proved without objection, and the lndlca-
tons are that none of the committee
amendments making additions TO the tree
list will encounter much objection except
those covering agricultural products
The question whether or not the action
OF the caucus is 10 be made binding on
the individual members VIII not be taken
I'd until it is forced on the attention OF
the Democrats by rebellion within their
ranks. The majority leaders take the
view that the caucus has already decided
that its action is binding on all members
except for specified reasons, and that II
Will not be necessary at the present time
10 bring recalcitrants into line.
Senator Kern, the party leader said
the caucus would bind all its members.
upon all features Of the bill, except where
they had made pledges 10 their constitu-
ents. or felt that they could not conscien-
tiously abide by the action of the major
ity
The chemical schedule. as revised by
the Finance Committee. was approved by
the caucus with only few verbal
changes. In the earthenware and glass
schedules, the item covering carbon for
flaming arcs was sent back 10 the COM
mittee for further consideration. The
committees report putting cement on the
free list was sustained after some debate.
Optical and surveying instruments and
microscopes and telescopes were placed
In the class Of necessities and referred
back with instructions 10 decrease the
duty or place them on the free list. The
provision eXempung stained and painted
glass used by churches and charitable in
stitutions was also reinserted.
Democratic members Of the Finance
Committee met tonight TO finish redraft-
ing the income tax section of the bill.
The important changes 10 be made in this
provision, reducing the exempted incomes
from 5000 TO 5000, probably will be COM
pleted on Monday, and the income tax and
administrative features * the hill then
will be turned over 70 the caucus for con-
sideration.
The income tax provision will not be
given TO the caucus however, until the
committee is able 10 furnish also the esu
mates being prepared by the Commits
sioner Of Corporations as TO the revenue
the income tax would bring in If 5000 in
comes were included within its taxing pro-
visions.