The Bridgeport evening farmer., 1914-06-29
THE NEW TARIFF LAW AND
 INCOME TAX PROVED soUNI

THE NEW TARIFF LAW AND INCOME TAX PROVED SOUND FIRST YEAR UNDER THE UNDER
 WOOD Law WILL PRODUCE
 778, ,OOO, ,oOO, WHILE UNDER
 PAYNE LAW THE RECEIPTS
 WE'RE ONLY $z24,o00. .oOO- WANTS $5OO, 900 ITO COLLECT TWENTY TIMES THAT AMOUNT
 FROM 1HOID-oUTs."
 Washington, June 28.-Representa Tarfn act, today gave the lie to the politicians who have been Iowling lcalamity in the past few weeks, and l especially to those who have been de- cIaTing the Democratic tartn a fadl- ure as a revenue producer.
 Armed with a. treasury statement of I receipts and expenses, the Democratic leader told the House that the re- lceipts under the Underwood act for the first year would be $73S ,000. 900, while the receipts under the Payne law in1913 were but $724, 100000. He also laid another ghost when he llaughed at the statement that bonds would have to be issued because of g. constantly decreasing income, and de- lcIared that even with the $35.G00,00Oi l special expenditures for the Panama Canal completion this year, the treas ury would be in a fat condition
 MT Under wood advised the ap- 1 proprfation of an extra half million to be used in collecting the income tax, stating that the Treasury would l receive from fifteen to twenty-five times that amount in taxes that are now successfully withheld from col tlectors.
 Said Representative Underwood: | Although the returns from the in- l come tax this year will not reach the. l naxtnaun1 ara will fa1lNsomewhat less than $1, ,000, 900, 900, there is no uues- I ton in my mind, and think can l demonstrate to this House in a few minutes. that the ordinary Teturns that will be collected from the income l tax and the corporation tax in a l normal year will amount to more than $1OO, ,O0O,O0O A cost of collection of $1,50O, 900 a. year will not exceed the amount that 1t costs us @ collect the ordinary internal revenue taxes ltoday; and in parentheses desire l to say that is much Hess than it costs most of the European countries to collect their Internal revenue taxes, and 1t costs us very much less than I to collect our customs taxes, as is l shown by the difference between 1-4 I per cent and 1 1-2 per cent.
 This is 4ew law It is true that we had an income tax law nearly twenty years ago, but 1t was hardly I started before it was wiped off the II books. A great many people do not understand the law Some desire to avoid 1t, but in my Judgment most of the failures to make returns are due I to the fact of a ding of I the terms of the law and not to an I actual intention to violate it.
 I Tarifr Decreases Light
 ssWhen the recent tariff bill was
 written" said MT. Underwood. ''the committee estimated that receipts from the customs dues under the first year of that bill would amount to $270, GOO, 900. That amount has al- ready been largely exceeded by the returns that have already been re- ceaved by the treasury in the last
 estimate of the moneys that will be received from the customs for this
 fiscal year amounts, to $s92. 000s000, or an excess in customs receipts of $22,- 00O,OO0 above the estimates that we stated to the House when the bill be-
 came a law.
 "Under the last year Of the Payne law the receipts for customs dues
 amounted to $S18,O00s000, so that it is
 seen the falling off in customs dues between the present law and the Payne law will amount to the differ
 ence between $318, O00.000 and $292,- Il COG. 1000. or about $26,00o, 900. Of
 course we expected there would be a | | failing OH m the TGCG1pLS rom GUS
 toms dues to some extent, or if we 2 had not we would not have proposed
 the income tax.
 s'The Treasury reports that at the
 end of this fiscal year the internal
 revenue will amount to about $30e.-
 OOO,000, which is a falling of of $3,-
 100000 in our estimates. But 1t is
 equal to the amount of the internal revenue taxes that were received un-
 der the last year of the Payne law
 exclusive of the corporauoon ea tax which in that year amounted to $309.- 2 900, 900, exactly the amount the in } ternal revenue receipts will amount
 to this year so far as millions are
 concerned.f
 MT. Underwood showed that the
 from all collections this year will 7 amount to $7sS, ,000,00O, with only .
 half-year exercise of the income taS feature Of the Tartn law, while the B Payne law in 1913, he said, raised . only $724.00O, 900.
 'sNow, as to whethre or not there
 will be a deficit in the treasury. as 7 have said, the total receipts will amount to $7s3, 100000 and the tota ordinary disbursements for this year 7 will amount to $70S,0O0,0O Ieavinl 7 a balance in favor of the treasury O
 $50, ,o00, 600, with only a ha1f-year il ) l which to operate the income tax. Bu
 gentlemen will say that that does no include the expenditures TOT me "a mama Canal, and it does not.
 sThe treasury advises me that the. will expend on the canal this veal $35, 5,00O,OO0. With $S0,OO0,00O of sur : plus over ordinary receipts and dis bursements and $35.O00sOOo to be ex 7 pended on the Panama Canal, it leave
 $5.eOO,0o0 that has got to be raised fe
 the Panama Canal expenditures. 3 Country in Fine Shape.
 s.I want to say that $5,OOo. .0o0 an,
 vastly more is in the treasury todd, in the way of a surplus, and tn ] government of the United States doe
 not have to borrow from anybod to pay it. In the course of tn
 next year expenditures on the Pan
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