The daily banner. (Cambridge, Md.) 1897-2008, 1913-03-24
EXTRA SESSION
TO LAST LONG
General Legislation May Be
Taken Up.
The INCOME TAX PROBLEM
The Amount of Exemption, the Method
of Collection and the Rate Are Prov
ina Puzzle.

The Amount of Exemption, the Method
of Collection and the Rate Are Prov
ing Puzzle.
Washington, March 24.-Democrats
expressed the view that the extra ses
sion of congress would be a prolonged
affair.
This was on the assumption that
President Wilson would recommend
to congress consideration of the cur
rency question as well as perhaps 9th.
er matters of pressing importance In
sofar as their discussion would not In
terfeer with the right Of way of tariff
revision.
The president has indicated within
the past day or two that he will urge
other needed legislation when the
tariff is out of the way. Consideration
of currency and other questions might
carry the session we'll into the au-
tumn.
Democratic Leader Underwood is
known to believe that the tariff would
be disposed of in the house by May i
and by both houses by July l. Speaker
Clark said that if only the tariff were
taken up congress could adjourn by
leaders predicted that tariff revision
would be ready for the presidential
approval by Aug. l.
eff the president should send In a
message recommending action on 9TH
er important matters other than the
tariff" said the speaker, Il have no
doubt that congress would take up
these matters. A good many members
of the house want to go right into gen.
eral legislation. A good many other
members believe that the extra ses-
sion should be confined to the tariff.
Of the three special sessions, called to
revise the tariff, in which l have Serv-
ed, the work was confined largely to
the tariff, barring such routine mat
ters as naturally come up"
The big problem with which the
house ways and means committee ma
jority now is wrestling IS the income
tax. Three points specially are being
considered, the amount of income ex-
emptions, the rate OF tax, including
questions of graduation or straight
tax, and collection. The Wilson act of
1893, the last Democratic tariff, made
$4,000 as the minimum taxable income,
which some of the revisionists argued
was really equal to $4,000 or $4,000 un-
der present living cost conditions.
Some house leaders, while prefer
ring a straight tax at the outset arsef
to have the system develop gradually,
would not oppose a conservative form
of graduation. Others favor a grad
uated tax, increasing heavily on large
incomes. The committee majority is
working with a dummy" percentage
rate and the final result will hinge on
these calculations and on the report
yet to be made on the probable reve-
nue. from the fourteen dutiable sched-
ules. The question of collection source
whether from the employer instead
of directly from the salaried mans
being carefully studied out.
The maximum and minimum provis
ion of the bill, it is said, probably will
be radically changed, perhaps with
reversing of the so-called "big stick"
policy by making the conventional, or
regular tariff rates, the maximum to
meet discriminating conditions in any
foreign country. The Cuban reciproc-
tty treaty of Dec. II, 1902, allowing
20 per cent reduction on imports from
Cuba from the regular tariff rates,
PROBABLY will be maintained by re-
iteration of the declaration that moth
ing in the new tariff shall be construed
to abrogate the treaty. Some substan-
tial changes in the Philippine tariff
are likely.