The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1916-02-05
INCOME TAX FOR DEFENSE.
DISPOSITION IN CONGRESS TO
GET REVENUE FROM BIG
FORTUNES.
May Double Rate Of Present Scale
With Much Heavier Tax Oh the
SwOOlen Income Glass.


York Sun says: Developments today
indicated that the Democrats of the
house will repudiate President Will
sons suggested revenue program and
insist that the income tax be relied
upon to finance the national defence
expenditures.
The disclosure that the Democrats
of the house are likely to oppose all
revenue measures for defence expendi-
lures except the increase of the in
come tax law came as a surprise to
the president.
| The information resulted from a
careful canvass of the situation in the
house made by the Democratic lead
ers. It developed that fully fifty men,
bers have written letters to the house
leaders expressing their determination
to vote against all new excise taxes
or other legislation designed to pay for
the army and navy increases, except
changes in the income tax law.
1t was said authoritatively that
fully fifty members in addition to the
number who have written formal let
ters to the house leaders entertain
the same determination.
AS q result of this development it
was said on high authority today that
the ways and means committee is
likely to present the house caucus a
bill increasing income tax rates by
$50 or 200 per cent. The commit
tee will report such a measure not
because of any conviction on the part
of the majority that other proper
sources of taxation for defence are
not available but in recognition of the
membership of the house.
sentiment among the Democratic
The leaders of the committee, in
cluding Majority Leader Kitchin, are
convinced that the revenue measure
to be framed at this congress must be
a measure for which the support of
practically every member of the
Democratic caucus can be secured.
One of the leaders Of the commit
ltee pointed out that If as many as
fourteen members of the caucus are
Opposed to a revenue measure pre-
sented from the ways and means
committee the measure may fail of
passage, in the house because of their
detection. 1t will be the policy Of the
majority leadership to frame bill
embodying every concession neces-
} Isary to secure the undivided approv-
J al Of the house causus.
Il The measure which the ways and
means committee is now inclined to
report In answer to the demand of
the house Democrats will not pro-
vide for lowering the present income
tax exemptions. The sentiment which
demands that incomes shall bear the
expense Of the national defence in
creases Is q sentiment for the taxa
tion of wealth.
Il The Democrats from whom this
sentiment emanates believe that the
men whose incomes are below the
present exemption points are already
sufhciently taxed by the government.
They believe that persons whose in
comes exceed $4,000. and especially
the holders of big incomes, should
be forced to bear all of the addition
al expenditures for the protection of
the country
TO this end they advocate not only
q flat increase Of from $50 to 200 per
cent in the present income tax rate
scale but increases on tho surtax on
the larger incomes. The present dis
position OF the ways and means COM
mittee is to be guided by this senti-
ment.
Not only does there seem to be a
sentiment among house Democrats for
Forcing wealth to pay the cost of ad-
dltional instrumentalities of defence
put there is a demand for the repeal
OF the present excises levied by the
so-called war tax law. 1t is now
probable that the present house will
rcpeal this law, which was re-enacted
in December.
The revenue situation in the house
from the first has been regarded as
the weakest element in the admins
tratlon's position. The administra-
uons position was believed to be
respectfully vulnerable because it was
TO face a division in the ranks in its
own party and could not depend up
on Republican support at all in view
OF the uncertainty that the Repub-