Aberdeen herald. [volume] (Aberdeen, Chehalis County, W.T.) 1886-1917, 1915-01-05
REVENUES FROM
TW0TARIFF LAWS
Income Tax More than Makes
Up Deficit Due to Re-
duced Custom Duties
AN OFFICIAL STATEMENT
Allegation that War Tax Was
Levied Because Of Deere
ased Revenue Exploded

SEATTLE, Jan. 4.-Assistant Sec.
retary of the Interior Bo Sweeney has
forwared to Seattle a copy Of the fol-
having letter received by him from the
assistant secretary of the treasury,
touching recent editorial in the Post
Intelligencer on the operation Of the
Underwood tariff law:
"Dr. Mr. Assistant Secretary:
"Your favor of the 18th inst. to the
secretary of the treasury has been
referred to me, together with the cor
' respondence which you inclosed, in
cluding an editorial from the Post
Intelligencer.
"The editorial to which you refer
contrasts the imports for October, 1914,
with October, 1913, and tries to show
that the Underwood bill is responsible
for less revenue in 1914. The writer
of the editorial seems to be evident
ly unaware of the fact that the Under
). wood bill became law on October 8,
1918, so that the returns of the reve-
nue. for both months were under the
same bill, which clearly indicates that
the loss of revenues from the importa-
tions this year could not be due to
any changes in the tariff.
THAT the Underwood bill is sue
cess as producer of revenue glance
at the figures will show.
when the tariff law was written
it was estimated to produce from GUS
toms in it's first year $270,000, 900.
There were actually produced in the
year from customs $292,320,014 or
22.320,024.51 in excess of the esti-
mates, which took into account the
estimated revenues for three months
under the old law and nine months
under the new law.
1T was intended by the tariff act
of October 8. 1913, to remove the duties
from certain necessaries of life and
lower the duties on others.
ITO make up the deficit caused by
the loss in revenue from customs the
income-tax provisions were enacted as
a part of the new act and the pro-
visions for tax on corporations were
amended.
"The tax on individual incomes
amounted to $2S,253,534 and the
tax on corporations amounted to $43,-
127,739S9.
"That the tariff act of October 3,
1913, not only justified the estimates,
but, as a whole produced during it's
first year more than the revenue meas
ure which it superseded is shown by
comparison of the revenue figures:
For the year ending June 80, 1914:
Customs, $292.32O,O1451; corporation
and income tax, 71,3s1,274.74: total,
$363, 3,7O1, ,2S925.
For the year ending June 30, 1918:
Customs, $31S,S91 1856; corporation
and income tax, $35. 5.C06, ,299.S4; total,
$353, 3,S97, $3.50.
This makes an amount of revenue
raised under the act of October 3, 1918,
greater by $9,SO3,593.55 than the
amount collected the previous year un-
der the preceding measure.
1T is estimated that during the
year the amount of revenue derived
from imports of the countries now at
war, excluding Turkey. would amount
to the sum of $146,OOO,OOO. 1t is, of
course, inevitable that the imports
from these countries should be seri-
ously interfered with by the progress
of the war, and this will naturally
result in decreases in the customs re-
ceipts. In no way could the Under
wood bill be held responsible for this
condition. The fact is, the figures
above show the bill itself proved a
successful revenue producer beyond
the expectations of it's trainers.
VERY sincerely yours.
ANDREW ]. PETERS,
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