The Washington times., 1914-08-15
DEMOCRATS PUT IN
QUANDARY OVER TAX
Must Decide Whether to Risk
Voters Wrath Now or Let
Matter Wait.

Convinced that emergency war tax
legislation must come to replenish cur
tailed customs revenues, but fearing to
impose additional tax burdens in ad-
vance OF the approaching campaign, the
Democratic leaders in Congress are in
a quandary today.
The question now confronting the Ad-
minIstration and the majority leaders
in both houses is, Shall we impose a
war tax now and invite embarrassing
political effects, or shall we wait until
December, when We shall know more
about the duration of the European war
and the shortage in our revenues?'
Opposition to emergency tax legisla-
ton is especially prevalent in the House,
and unless President Wilson insists upon
refilling the Treasury tills Immediately,
amendments to the tariff law will be de-
layed. That an emergency tax Is in
evltable. however. is conceG>d. The es-
timated loss in revenues because of the
war abroad is $4,000. 900 per year, and
there is slight hope that normal business
conditions will prevail for several years
to come.
Underwood Opposes Tax Now.
The seriousness of the situation con-
fronting the Democrats became appar-
Secretary McAdoo and Senator Sim
mons and Congressman Underwood. OF
the three. Mr.. Underwood is understood
to be most strongly opposed TO a war
tax at this time. believing the Demo-
Gratis should wait awhile on develop
ments. 1t Is said that no Democratic
members of the Ways and Means Com
mittee wants legislation now.
SECRETARY McAdnO inclined In In ed
upon early legislation to keep the
Treasury in good financial shape, but he
is leaving the details to the House lead
ers, who must take the initiative in
passing revenue-producinE measures.
One of the leaders of the House said
today that there was absolutely no
sentiment for legislation at this time
among his colleagues. All fear that an
additional revenue tax on beer, tobaccos
or other articles will result in embar
RAISING complications during the cam
paigns.
Secretary McAdoo and Mr.. Underwood
are substantially In accord in their esti-
mates of the amount of addItionaI reve-
nue. which must be raised The i'm
port duties from the countries now at
war are estimated at $l5OOOO 900 nm
nually. The Secretary of the Treasury
and the Majority Leader are agreed that
these duties will fall off about two
raised elsewhere
AT the conference 1t was decided IN
ask Tor definite figures from the prin-
clpal ports and when these are received
the Democrats of the Ways and Means
committee will be called together TO
ueternlhe upon course of action
Two Alternatives.
There are two ways open to Demo-
Gratis. but each has its drawbacks. one
tentative plan is that there shall be
imposed stamp tax" similar to that
used during the Spanish American war.
and 1t may be decided to tax not onIv
liquors and tobacco. but to levy a tribute
upon the issuance of all checks, drafts,
mortgages and other commercial paper
Another plan, TO which MIR. Hull, au-
thor or the Income tax is giving atton-
tion. Is the the proposal TO raise the rates
OF the income tax by making the surtax
two instead OF one per cent. The OBJ
lection to this is that the tax ordinarily
would not be collected until next June
and If there are to be immediate re-
turns for the relief of the Treasury
the entire scheme OF income tax returns
and collections must be changed.
The worries incident to the drafting
of a suitable and responsive measure
accordingly are second only to those
concerning the political effect of such
legislation. All of the Democratic
leaders in Congress are reluctant to at
tempt the legislation now Ons og tl,efa
privately admitted that the party would
be on the defensive in tho tsiftN,afgrd
and there is no telling how the averasi,
voter will regard new taxation burdeny
under the present circumstances. These
troublesome questions have been put IN
to Secretary McAdoO and it is expected
they will be laid before the President,
who eventually will make the decision
whether the emergency bill is to be
jammed through now or held I'D until
December when the Democrats Will
have more definitely established their
bearings.
Fear Evasion of Tax.
II II is proposed to tax articles under
bond in ware-houses. such "a liquors