New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-09-10
Plan to Raise Rate and
Levy on $4,000 and $4,000
Glasses Dropped.
WOULD NOT YIELD
IMMEDIATE REVENUE
Committee to Consider Putting
Chief Burden on Beer, Wines
and Railroad Freight.
frrom rNo Trlbnne Dnroau. J

Washington, Sept. 9.--President VIII
son to-day upset the plans Of the
Democratic members Of the Ways and
Means Committee, who agreed last
night to increase the income tax rate
and enlarge its scope to raise largo
part of the s1OO,OOO,0OO revenue
needed By the Treasury Department
The President declined to approve the
income tax amendment, and the COM
mittee tomorrow will begin its work
over again.
MIR. Wilson expressed his disapproyal
when Senator Simmons, Representative
Underwood and Representative Fitz-
gerald called at the White House %
day. That an increased income tax
would Weld no immediate revenue was
the chief objection voiced by the
President, who is said also to have
looked with disfavOr on the proposal
to tax incomes as low as $4,000 year.
II was pointed out at the White House
conference that unless the entire col
lection machinery of the government
was to be readjusted and perhaps as
ruptcd, no returns from an increases
income tax would be available until
the middle Of next year.
In his recent message to Congress
the President included Suggestion
which Democrats Of the Ways ana
Means Committee failed TO take as d
hint. The President said: 90,
mTbe only suggestion | take the lib
erty Of making is that such sources
of revenue be chosen as will begin TO
yield at once and yield Wlth sIeauy
and constant flow"
A member of the House committee
said to-day that the President did not
believe the income tax would produce
u steady flow.
May Tax Railroad Freight.
While majority members OF enc
WAYS and Means Committee would not
discuss the situation for publication
il was admitted that the revenue leSIs-
lation programme has been completely
changed by the Presidents course.
They find themselves where they were
a week ago, with the exception that
the taxes on beer, wines and gasolenc
NAV stand rs outlined, unless II IS
found necessary to increase them 20
make up the $35,0O0,OOO which was 10
have been raised by the income TAX
amendments.
w men the DeIUOIIdto VI wv NNi''i'
tee reconyene tomorrow hitherto dls-
cardcd items will be taken up for dts.
cussion. and there will BE renewed
consideration of suggestions for the
taxation Of soft drinks, railroad tick
cts. proprietary medicines, playing
cards. cigarettes and amusement tick
cts. The proposed tax on whiskey will
also bob up again, although compro-
mise was reached last night on two
cents a gallon tax on rectitied spirits.
To Offset the rejection Of the income
tax amendments by the President, 1t is
likely that railroad freight will share
with beer and wines the chief burden
of taxation. A Democratic member Of
the committee said tonight:
an view of to-day's developments
the question now is whether we viii
tax many articles to make up the
500. 900 900, or whether we will raise
considerable revenue by a tax or
freight. A tax on freight, of course,
would be distributed throughout the
entire country, the manufacturer pass
ing it on to the middleman and the
middleman passing the tax on to the
retailer and the consumer. II is not
unlikely that to obtain the widest dis
tribution of the burden the chief arti-