The Sentinel=record., 1914-09-10
Will NOT RAISE
The Income TAX
president WILSON DISAPPROVES
THAT PLAN OF RAISING
NEW REVENUE.
Congress Plans to Raise the Entire
Amount Through a Tax on Certain
Commodities of Trade.

Washington, Sept 9.-President
Wilson's disapproyal today of the
proposal to increase the income tax
as means of raising revenue to Off
set a treasury deficit due 70 the En-.
ropean war set democratic members
of the ways and means committee to
revising their plans. They will renew
tomorrow the effort to craft war
revenue bill. The president made his
attitude known at a conference with
democratic leaders in congress.
Preliminary steps also were taken
by democratic senators today to re-
adjust the pending $50 ,O00,0O rivers
and harbors appropriation bill,
against which republican senators
have conducted filibuster on th~
ground that it is framed or extrava.
giant lines and that the 100000, GOO
war revenue bill would not be neces-
sary If the new projects proposed in
the bill were abandoned
Senators who champion the bill,
have asked the war department for
revised estimates on the amounts alb
solutely necessary to carry on exist
ing river and harbor work and the
most urgent new projects in anticipa,
tion Of pruning the bill
1t was reported tonight that a con
ference between republican senators
opposing the bill and democratic lead
ers had been held at which sueges-
lions were made for a compromise
paving the way for early adjournment
and removing much senate opposition
to the war revenue tax.
Democratic members of the WAYS
and means committee conferred in
formally today. They were not all
disappointed by the presidents dis
approval of their decision to increase
the income tax one half of one per
cent and to decrease the exemption,
The presidents principal objection
was said to be that such tax was
not Immediately avail able and there
fore undesirable.
Chairman Underwood. who discuss
ed the subject with the president was
inclined to agree with this view anG
it is improbable That an income tax
amendment will be proposed.
Cigarettes probably will be added to
the list of taxable commodities al
ready agreed to, such as beer. wines
and rectified spirits. A plan also IS
under consideration to make the tax
on beer one dollar a barrel. which
yield sos, 900, 900. That amount. to-
gether with s1O,000,000 from wines,
80 600 900 from rectifed spirits, prob
ably $5,000,000 from cigarettes, prob
ably taxes on railroad freight. gasO-
line, automobiles some proprietary
articles and soft drinks, it is estimat.
ed would yield all the revenue neces-
sary, particularly if it is determined
not to appropriate all of the $53,-
10000 proposed for river and harbor
work.
Representative Oelesbie of New
York in letter to the committee,
suggested a tax of so cents horse
power on automobiles, not engaged in
commerce, and a tax on golf balls,
lie estimated that S25 100000 could be
realized from the automobi' tax
Official estimates, however. are for
81 100000 on motor cars. The pro
posal to put a general tax on railroad
freight is the main question now be-
fore the committee The real issue
is said to be whether to make up the
necessary balance of revenue by "a
tax on freight traffic or by diffusing
the tax among many lines 70 2usi-
ness. A levy on freight, it is esti-
mated. could produce $4,000 o00 reve-
nue.. but there is considerable oppo-
stion in both houses The question
will be decided tomorrow.