The citizen-Republican. (Scotland, Bon Homme County, S.D.) 1???-19??, 1914-09-17
TAX IDEA
MEETS OPPOSITION

Washington, D. c., Sept. 15.-Because
fof a democratic revolt in the House
against the freight tax proposed in the
war revenue bill, Democratic Leader
underwood today decided to await the
ireturn of President Wilson to the CAPT
ifal before introducing the measure.
l. Protests began to reach the Iowa
F~delegation today against the proposed
freight tax. 1t is denounced as a tax
Eon the grain and live stock of the
warmer and a burden on the
made necessary by the pork BARREL
river and harbor bill.
Bbs Some of the kicks are coming from
business men n some from farmers.
q. "A petition was circulated among DEM
focratlc members today, demanding a
caucus next week on the proposed bill.
ESouthern and western democrats be-
gan the caucus petition. The alterna-
give. they propose is to increase the tax
ION beer by 81 a barrel, which would
met S65,OOO,000; an increase on whisky
and other distilled liquors, and probably
e. tax on automobiles. The slogan Of
fhe fight will be: "Tax the %luxuries,
mo- the necessities"
We don't wan any kind Of a tax,
fbut We must have it," said Mr.. Under
wood.
1--WE did not want the war in Eu-
rope. We will push the bill through
as rapidly as possible" Representative
Trucker, of Missouri, today introduced
e bill to increase the income tax rate
Eone-half per cent and to reduce the
exemption to $4,000 and $4,000, as had
been originally provided by the ways
and means committee in the revenue
bill, but withdrawn at the request of
the president.
In further effort to relieve the finan-
Fcial situation, the commerce commit
tee of the Senate today continued it's
consideration of the rivers and harbors
bill, planning to reduce it from $53,-
300, 900 to $31, 5000 100.
May Never Be Removed.
The decision Of the House ways and
means committee to recommend a 3
per cent, tax on all freight shipments
will precipitate a bitter struggle in
congress.
l. Members of both the House and
Senate were frank in their assertions
that the imposition Of this tax or the
general consuming public will never be
removed after the war is over. They
declare that it opens the way for he
railroads to collect hundreds of mil
lions annually from the public. This,
too, after the Interstate Commerce
commission has ruled they SHOULD in
crease their revenues through econo-
mics.
The war revenue easur will pro-
vide a tax of so cents a barrel on beer,
go cents a gallon on domestic wines,
and 3 per cent on all freight charges.
The beer tax is expected to produce
1913, 000, 900 annually, the wine tax 3d.
O00, 900 annually, and the freight tax,
$65, 600, 900, or a total Of S107, 600, 900.
It is pointed out, however, hat the
freight tax will amount to far more
than S65, 900, 900. During the testimony
in the recent eastern advanced rate case
lit was stated that a S per cent advance
in eastern territory alone would pro-
duce $50, 600, 900 additional for
the railroads.. The 8 per cent revenue
TAX will be iaid on all roads in the
try.
y Those who object to the tax assert
that it will increase the cost of living
all along the line.
Cite Spanish War Tax.
AN analogy is being drawn between
The probable results Of the tax on
freight and the results Of the war tax
ion tobacco during the Spanish-Ameri-
can war. The tobacco men Immediately
reduced the size of their packages to
make UP for. the tax. When the tax
was taken off they did not increase the
size. Consequently, ever since the
Spanish-American war, American smo-
Kers ave been paying the tobacco
trust the equivalent of the war taxes.
Those who oppose the freight tax as
Ssert it will never be removed after the
government ceases to draw its money.
President Wilson is not opposed to
the tax on freight. 1t is possible that
before the bill is adopted an amend
ment will be Incorporated empowering
the president to suspend the tax on
freight at any time hat he regards the
treasury in good enough shape to do it.