The evening times. [volume] (Grand Forks, N.D.) 1906-1914, 1913-03-28
Leaders May Not Take the
Matter to President Will
son For Help.
GRADUATEDLEVY
FAVORED BY SOME
Palmer and Garner Oppose Under.
woods Scheme of Tax ON Minimum,
Of $4,00O-Ways and Means CO.. 8
mittee Agrees on the Latters.

Washington, March 2S.-Although
Cordell. Hull and Chairman Under
wood have virtually decided that
there should be fiat tax of per cent
against all incomes over $4,000. Rep
resentative John Garner Of Texas, one
Of the new members Of the house
ways and means committee: is making
a hard fight for graduated income
tax. His idea. substantially. is that
there should be a tax of 1 per cen:
against incomes over $4,000; 1 1-2 per
cent on incomes over $4,000: Q per
cent on incomes over $4,000; 2 1-2
per cent on incomes over 100000. and
8 per cent on incomes over $4,000.
whose income amounted to $4,000
would have to pay the government
$3.50 a year.
A. Mitchell Palmer Of Pennsylvania,
who Is also member of the commit
tee. favors a graduated income tax,
and while he probably would want to
exempt incomes Of $4,000. he believes
ward.
There may be a change In the plan
after President Wilson has been con-
suited, and 1t may come about that the
democratic party may go so far as to
tax all incomes over $500 on gradu-
ating basis, but even the leaders who
are willing to risk the stron9 public
slashing of the tariff, are not willing
to go much further with the income
tax.
Claim Price Will Not Drop.
In the case Of sugar, 1t has been
possible in the past to raise revenue
amounting to $5S,O00,000. There are
many who claim that II sugar goes
on the free list it will be impossible
for the sugar industries in Louisiana
and other sugar growing states to sur
vive. and the chief industry Of Louis
lana will be ruined.
Meanwhile. 80 certain legislators
claim. it is wholly unlikely that there
will be even a penny reduction in the
price ,of sugar. They point out. that
foreign dealers can reduce their price
penny pound just long enough to
drive the American industry out of
business and then boost the price any
In England. the income tax is COL
lected in a lump sum just after each
Christmas. A great many persons try
to evade the tax, and the government
had to pass a law to compel employers
make a sworn statement Of the wages
paid to their employees. The tax col
lectors here. as there. will probably
and examine his books.
Specialists Help Tax Dodgers.
There are investment specialists in
London by the score who undertake
to manage mans Investments so tina,
he does not have to pay any income
tax. This management" means q
double loss to the country. for II
means that the money is invested
abroad and builds up the industries
Of competitive countries.
The tax from dividends earned by
English companies must be paid by
the companies before the dividends
are paid to the shareholders, SO that
there is no escape for the holder OF
English securities. The man who has
his money in Argentine railways or in
Canadian land or in Russian petrol
cum may pouch his dividends without
any fear Of detection, and pay Just as
much or as little as he chooses to
declare.
Another favorite scheme with those
whose consciences are less robust is ia
reinvest dividends abroad. In this
way the tax is escaped legitimately
for the income tax is only. leviable
on money received in England, but
the effect on British industry is to
rob 1t Of Just 80 much capital, which
goes to build up it's rivals in foreign
countries