The sun., 1917-05-12
rordney Of Michigan Says
Money Should Be Raised
by Bonds.
SEES TWO BILLION YIELD
Measure Assailed by Manufac-
turing Interests as Ruin
Gus to Business.

Republican member of the Ways and
Means Committee. in the second days
debate in the House on the 81 500, ,000. .ooo
avenue bill.
Mr. Fordney declared the nil will
rase more than $4,000. 900. 900 and said
mat the money should be raised by
ponds so that future and numerically
greater Generations might pay for the
war that the present generation is fight
M FOR them.
or tho four hours Mr.. Fordney oc-
''Ipicd the floor most of the time was
,pent in questions by members who are
,naious TO avoid heavy taxation in their
districts The questioning disclosed that
committee amendment will prevent in
reases in postmasters' salaries by reason
" advanced postage rates.
MIR Fordnev said an attempt would
He made by amendment TO make freight
rates pay much OF the taxes. This would
"a a serious menace. he said as rail-
-oads were never in worse shape flnan-
Tally. Debate on the bill is expected to
close tomorrow. Some members ap-
rarently afraid to trust their own juds-
rent OF the bill, have been loath to
peak. but a determined fight on many
'eatures, particularly on automobile
axes and on second class postal rates.
10 promised.
No Partisan Fee1luG.
u am glad to say there was no par
'san feeling in the Ways and Means
Committee in preparing this BILL" Mr..
Fordney said. NO man on the com
nittee was satisfied with everything that
vent into the bill. There are some in
justices in the hill no doubt. The answer
- the whole thing is that We must have
the money.
"Durinr tho session NJ Congress- last
winter and this extra session of Con-
grcss We have authorized. We have taxed
he people. Sl2.5o0. 900. 900 including the
So 900 .000. 600 to the Allies. which we
must pay whether they pay or not. That
10 sum beyond all human comprehen
sion. At "A dollar a minute night and
day. Sunday and week days, TO create
fund of $1,000. .0O0.0O would require
, 900 Years Just 81 900. .000, 600. Multi
ply tlat by IL and see the enormous sum
o; money We are calling on the people
TO pay
There are some injus.ices in the bill.
but on the whole | do not know where
We could get that amount of money
without placing the tax practically
where ii is. I have in mind one means
Of raising a large sum and without i'm
posing a great burden. We have put
stamp tax on some articles. mortgage
''IuS anu ttle ike. DuI we. nave Itll oil
he tax on bank checks. We have put
lax of two cents a hundred or frac-
tora part thereof on promissory notes
'lf were to place a tax Of that
kind on bank checks, which ! do not
commend. 1t would yield $500, 100000
10 Sso0.00o.00 at two cents per hundred
or fractional part thereof. II is a tax
that would not burden anybody. but 1t
would cause more complaint and kick
Ing than anything Of which know"
Replying to critics of the income tax
section Mr.. Fordney told the House that
there is limit to which the Govern
ment can go and take from a man his
income until he begins to evade the law"
There is no law In this country or
any other" he said, that compels a cor
poration to pay dividends. The minute
YOU have taxed the corporations to a
point where they see you are about to
confscate their property, they will pass
20 surplus their earnings instead Of pay
ng II in dividends. In making UP these
Income tax rates. the committee We're
mindful OF these possibilities
Republican Leader Mann asked II ii
would not be fairer to tax newspaper
and magazine advertising than to put
the proposed additional postage rate on
second class matter. Mr. Fordney re-
piled that this would be a tax on volume
~ business and an unjust tax. Repre-
sentative Hull Of Iowa also opposed the
'ncresed rates for magazines and news
papers, and challenged statements that
:he Government now is losing millions
annually on this class Of business,
Refers to Henry Ford.
Referring apparently to Henry Ford,
former pacifist, Mr.. Fordney explained
he income tax.
"If mans income is $1,000 900. and
s>t year l20 men IN the United States
paid tax on an income above $1,000
900. he pays under the old law s102,92o
Under the new law he will pay in ad-
d'tlon s2s7 $50. or total tax Of $780,
'2o, or 40 2-l0 per cent. of his total in
ONE, When II reaches Sl.50O,O0O his
laX is 1855 per cent. and for $3,OOO,00O
/ is +s.l4 per cent.
u know OF man. a resident OF the
state from which ] come, whose income
more than $40. 100000, as published
n the annual reports of the firm Of
which he is president, and an income of
'""ono opg will pay in round numbers
10000 600, or one-half Of the income.
I believe the income tax will raise
more money than has been estimated. !
lgure that we will raise this year in all
$1,000 600 900 on incomes. not including
ne excess profits tax, which Is S226.O00,-
100 and by doubling UP the excess
'roftS, as we have. we Will get s452.-
100000 this year. not allowing for any
Increase in the amount of profits. | be-
eve this bill is going to raise more than
- 900 600 900"
The revenue bill was bitterly assailed
ny representatives. OF manufacturing in
'ereSts who appeared at the public hear
.ag before the Senate Finance Committee
.o-day. Glaring flaws in the measure
we're pointed out and assertions were
made that the proposed taxes, in many
lnstances, instead OF increasing the reve-
We, viii put a blight upon industries
anon which the increases must heavily
!all
Threats to Business.
Representatives Of the carbonic acid
reducing interests told the Senate CON-
n.ttce to-day that the House measure
imposes upon their products. which sell
at the average price Of cents pound
~ arbitrary tax OF cents a pound
nder the bill as II stands many manu-
acturers IN this industry would be com
9e!led to carry out existing contracts fol-
he sale OF their products at 4 cents and
At the same time pay the Government
"nts or go out OF business.
II was also pointed out to the COM
n!ttee to-day that alcohol used In the
1anufacture OF medicine will pay tax
'pproximately twice as high as alcohol
-'ed in the manufacture OF intoxicating
averages. Representatives OF manufac-
'lrera OF cordials for soft drinks also
INSISTED that II the present taxes stand
go proposed most OF tho manufacturers
VII go out of business.
IN ahorn IN nlpa was made op behall