The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1916-07-02

It has been calculated that. $50. ooc. 900
could be raised from each OF these
items. annually. without increasing the
consumers cost Q cent. :''
Maybe that's true. but Il doesn't
make the politicians fancy the idea q
bit. They know that IL the tax were
imposed there would be a great protest
against 1t, and that 1t would be cited
ss the evidence that the necessaries Of
life were going to cost more.
This matter Of taxing tea and coffee,
for revenue. illustrates the. difficulties
Of tariff making.
When the Republicans were proposing
such taxes. Copgreysman Lonsworth
made careful study and convinced
himself and other members Of the Ways
and Means Committee that q big block
Of revenue could be secured without
increasing the consumers cost.
1t was found that in Germany. where
coffee was at that time carrying quito
al, 2 heavy duty, the people ,, were gsyins
where 1t was duty-free.
Likewise. the same inquiry In Eng
land. where both tea and coffee were
taxed. developed that the tax didn't add
to the consumers price.
Situation Easily Explained.
It seemed hopelessly contradictory.
but the explanation was rather simple.
The public pays. not for tea and coffee.
but for brands that are popular1sed.
The owner Of the brand commonly has
a standardized price. and absorbs the
custom duty without adding It to the
retail price.
But none the less the statesmen shy
at the idea Of these direct taxes on the
table. They're too hard to explain.
A Republican member OF Ways and
Means descanted at length the other
day about the virtues of such taxes for
revenue purposes, and assured a Demo
cratic friend that they should be adopt
"All right. you offer the amendment;
maybe they could lie adopted" replied
the Democrat
Gratis do that. You need the revenue;
I offer you an excellent idea, but this
isn't my revenue BILL"
Some details have leaked out regard
Ing the reorganized income tax pro-
posal that will be carried in the Demo-
ported.
1t is said that at last accounts the
surtaxes were to be imposed beginning
at the 10000 annual income; the charge
900 to $s5. 900. and from that Increasing
until II would be s per cent ON incomes
Of 100000 and over.
Inheritance Tax Rate.
The inheritance tax. according to the
same authority. Is to begin at 1 per cent
on inheritances Of $50 900, increasing un-
til the maximum Of per cent Is reach.
ed on those Of 81, 100000 and over.
Republicans. or some of them. are
getting ready to attack the Democratic
anti d1mping provision of the measure.
being dumped here from foreign coun.
tries at prices so low as to make Amerl-
can competition impossible.
The theory Is that imports NAV not
be brought In at prices under tho aver
age wholesale prices In the country Of
production. with Intent to monopolize
| market In this country. OF course,
most impossible to prove: in most cases
| there isn't any such intent.
Republicans probably will offer. As
an aiternative. a method for enforce
or the present tariff act.
| In the past Il has been admittedly
dinicult to get those penalties enforced;
but there 10 little doubt that It could
be accomplished.
No Alternative Measure.
One important question In connection
with the revenue measure seems to have
been settled.
It II that the Republicans will not
Introduce an alternative measure. show
Ing how they think the Government's
revenues ought to be raised at q time
| like the present.
"Our function is to criticise," said q
Republican member who has helped
make several tariffs. I'VE charge that
the Democratic system has broken
down. and on that charge. and our
lat AIT NV