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The Commoner.
12
VOLUME 14, NUMBER $
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MICEBEASt
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VOVR CKOPS
SO to lOOjb
Free Sugar and a Tax on Incomes
The democratic caucus of tho special excise tax with respect to
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To )ck and inilvuriM
1110 MMMI MHl IUM KJflOp
a trtnnn amttfli w trm 4n rrt&ln
tlio MMriuviiro-tuM Imparton-lnn to pownnil to plant
ITwj Mvitm JLwml ftetfor WW fite Ml.
Wo wll iMrrot to 7011. rrw Circular k
orlpUnn, pcloa Out mmI UwtUnotilntH. Tiu bt to
got rxrttor erop" mhI InmnrtfMso roiir Winter "VTheiit
yllitd l7 ratlins In IhOJHNrttiR now to Kttt ft parhot
utiunl f aMnM wtrti but 0 11m. of flood por noco.
Wrllo for tho yjuat oicouinr voiiav.
I Woilom Unit RoHor Co., Cox 142 Hattlncs, Not). 1
1 i"J-
BIG PAY xS
Youiig Men
Wanted
To Iiottrn flic
Aulomobile
Business
Work plrannt ntul dt'tiinrut Ur mon urcni. I'lt
yourhotr for paslUon o ntmntTour or ronftl' until. Wo
U'Jicli voti lr iniUI to liorixiiu tlionm-lily nflJiwMil In
ton wtmkv aiul iiHwvt yu to kcciiio xooil pnsHltm.
IllKlily imiliiwi'd roHMouultlo, No ittitouiouJlo 110
rwsnry to Itwtr ro fnnilxli froo inoilcJ.
.Send for Flr.il Li-wion Today II'm Vrcv
OwimrMMiiipllori with llrst-clnss diiitilTiMirH.
Empire Auto Institute, 929 Empire Rldg. Rocbs'or, N, Y.
T111 Ot'lftlimt Antomohitn Srliool
KYQ AMAZING
El 0 d Invention
An entirety new lamp burner.
Clmiiiies (military kerosene iHiunl
nation Into liennlif ill Urge while light.
Hlvals tins or e'crtrlclty. Srlentfi
rally tnnile. Heals the. old style
lawn. Nut .1 mantle. Can't Ilreak
Big Profits SKtn:
KJfiSM H n 110 dally fnrynii. I'.xperience
$KJr "'""pessary. Sample outfit iSc,
THERAOIOLITECO., Dopt. R., Tolotlo, 0.
i
ChoSse VErglsia Fsi'iss
ALONG CHESAPEAKE & OHIO RMLWAY
AB LOW AS $10 1KU A0B. Almmlniit ruinfiill. rich
011, m Hit win t cm. nonrly onitprn markots Wrltn for
OJl poiiw). nnd Mr oin.lpr 1 rnton. , Adilrrm,
0. & 0. Unllwoy, BoiiAV lUchmond, Va.
TIMOTHY SEED 99 Pure
CLOVER SEED 98X Pure
auffiSKrKff-;ss
Stoocker Seed Co.,
Box a Peoria, m.
PITCCM oNrruw;ouPnont
F I I l",y our oiualt profcRslonaltoe
. . unt" 0,,rod andoatlBned, Gorman.
AmarUaalnatltuto, 80 Qrand Ava., Kanaaa Otty, Ma,
JV I tlR iff i r w
rais
K " Vr O? fTrTjru
s JliJft MmJiiiCw
WESKIPoNJippilOTai
T 0pJ"-Y COSTS one cent to leirn our
' " Vf" od mttrvtlout cfjtrx
on liluliest Kde xnia mode4 bicycles.
FACTOOY PRISES affiS
a ralr of tires rrora at(ycne at nn)- riV
huatll you write for ourlarcc Art CataloK
anil iMra mi r.ijiMj.. "..t... ...... .
StmnlO MCVCle trolni to vnnr t.ion
MER AQEHTS sartTS
,7""' """'"K " 5CUIHB' out uicycieSa
VUt CaII rhi4ii at...... .i '
bl ,rTIRIrs1Co?r.nrakroarwheol.
lAmm. trnllri ami afl om, uu i. .v . . . f
MBAO CYCLC CO.. Dap U 177, CHICAGO
The Guaranty
State Bank,
Muskogee, Oklahoma,
siasssa?wftS3uas
M Q. UASKKIJ, vico PresldonU
M. 0. SKIiM, CtwUlor.
linn on nf rnnroKOHtlltlVGa liaS ftP
proved tho sugar bill and the income
tax bill as presented by the ways
and means committee. An As
sociated Press dispatch tells tho
story in this way:
Washington, March L A bill to
put sugar on the free list, eliminating
$53,000,000 in customs revenue, and
another to extend the present cor
poration tax to include individuals
and co-partnerships doing business
of $5,000 a year or over, were rati
fied tonight by tho democratic caucus
of tho house. Tho excise tax, so
called by the ways and means com
mittee, is in effect an income tax.
Tho bill is so drawn that it is ex
pected to comply with the supreme
court's decision against tho consti
tutionality of an income tax. Its
effect would bo to tax every per
son who earns more than $5,000 a
year on the excess of $5,000 at the
rate of 1 per cent.
Tho estimate of Chairman Under
wood and members of the ways and
means committee is that the pro
posed excise tax would bring in a
revenue of between $50,000,000 and
$60,000,000 a year.
Placing sugar on the free list, the
democratic loaders estimate will re
duce the cost of sugar to the con
sumer about a cent and a half a
pound. Tho secret that members of
the ways and means committee had
been so closely guarding for several
days was the provision to extend the
corporation tax.
Tn the caucus the bill was not
seriously opposed. The free sugar
bill, however, was bitterly assailed
by representatives from Louisiana,
the cane sugar state, and representa
tives from sugar beet-growing states,
who were absolved from the bond of
uie caucus. No roll call on the ratifi
cation of the bills was demanded.
Majority Leader Underwood an
nounced that the bills would be re
ported to the house in a few days.
'We simply took the corporation
tax and rewrote it to include indi
viduals and co-partnerships," said
Mr. Underwood tonight. "The bill
to illustrate, simply means that i!
whose business is that of a member
of congress, will pay to the govern
ment J Percent of my salary income
over $5,000. The salary of a con
gressman is $7.5nn t rii n.-
fore pay an excise tax of $25 a year
The president of the United States',
should he proposed bill become a
orW7 no !!?y : rr C,ent ? 70.000,
rpl70Viis saliry being $75,000."
The statement further savs that
by manufacturers and refiners of
tJSff hw;e,)e?n (lne t0 the om8
f?P 'if3d U,a plaPin sugar on the
fiee list would reduct the profit
Zln n c!rstroy the industry in
he United States, but would result
f l7oVo0 AmeHC-
wood said, "is to extend the tax : on
doing of business bv individuals
..... uw,,.lmBU Ule Sftme res,j1t
como tax law so far as raising re?
con.Htutlon.ut, ot thoofaC
"The bill does not in any wav
shall be subioot to "Jay" annually 'a
carrying on or doing business by snohi
persons, equivalent to l per cent on
the entire net income over and above
$5,000 received by such person from
all sources during each year, and
further provides that in computing
tho income of any person there shall
not be included the amount received
from any corporation, joint stock
company or association, or insurance
company if the special excise tax of
1 per centum net Imposed by law
has been paid by such corporatism
or stock company or insurance com
pany or association.
"In other words, the income de
rived from dividends of a ca?ra
tion on which the tax is nw levied
by law will not be subject to a
further or additional tax, fcut in
comes derived from other sources of
business than those named in the
corporation tax act will be subject
to a tax of 1 per cent where the net
income exceeds $1,000 annually."
The statement further says:
"That if these bills become laws
they will have repealed a burden
of taxation now borne by the Ameri
can people on a food product that all
must consume of $107,000,000, and
will have substituted in place thereof
me taxes wnich will probably ag
gregate between $50,000,000 and
$60,000,000 that will be collected
from persons who have an income
of more than $5,000."
The sugar bill submitted to tho
caucus would eliminate the much dis
cussed duties standard that test, and
contains the following provisions:
Sugars, tank bottoms, svrunn nf
cane juice, melada, concentrated rae
lada, concreate and concentrated mo
lasses, maple suear. manlo vrnn
fined syrup, glucose or grape sugar
and sugar cane, shall be admitted
free of duty.
Saccharine, 65 cents per pound
duty.
Sugar candy and all confectionery
not specially provided for in this act
or in the first section of the act cited
for amendment, valued at 15 cents
per pound or less and sugars after
being refined, when tinctured, col
ored or in any way adulterated, 2
cents per pound; valued at more
than 15 cents per pound, 25 per cent
ad valorem. The weight and the
5w th?, immediate coverings,
other than the outer packing case
? nlf c,0T?PlnB sha11 1)e included
in the dutiable weight and the value
of the merchandise."
fi1iih.!!'m?n Undei'wood's statement
then continues:
The removal of all taxes it th,
custom houses Will of course reduce
the revenue that the government
needs by $52,000,000, and ft wS be
necessary for the committee on ways
and means to provide other soi7rcS
of revenue to take the place of too
loss from the removal of the taxes
on sugar. To accomplish this r2
t, ; r ;i"" "lua ,s committee de
termined to nr;n 'rr u l.we a
bill extending the pient exohTta;
coSrr.8 t0 ta-W
"The sunrGmo nmn-t j...., .
ing its former decision1 1 oU linTth
an income tax was unconst i fionai
has maintained tho constitutionltv
of an excise tax levied on a 1 cornor7
tions doing business in tho C
States. The supreme court hi,
cided that congresses ?he power to'
ovy a special excise tax on ?ho ,in
tt50tS W" business? whethS
;rv,"Sness Is conducted by an
individual or a corporation iL
the power to levy a snenini L , d
tax on the doing of all S GXCl
corporations. Tghef ZvZ? &
bill presented to the caucus la tn
extend the tax on doing business bv
individuals and co-partnershlna
Tho special excise tax will accomn.
llsh the same result as would have
been accomplished by an income tax
if it were within the power of con
gress to eaact an income tax law bo
far aa raising the revenue is con
cerned, but at the. same time the bill
keeps well within the principles laid
down by tke supreme court in its
decisions affirming the constitution.
ality of the corporation tax law.
"Under the present law persons
who have their money invested in
corporations that are employing
labor and developing the country are
taxed 1 per cent on the net earnings
of the corporation. Why is it not as
equitable and just to impose a simi
lar tax on individuals whose money
is invested in lines of business not
organised a3 corporations. Under
the present law the stockholder In a
corporation is compelled to pay a
tax; the bondholder, who, as a rule,
takes little or no risk in tho busi
ness, is not taxed. If the bill be
comes a law the bondholder can bo
taxed n the same basis as the stock
holder. The levy of this tax is not
excessive. A man having an in
come of ten thousand dollars would
pay no tax on the first five thous
and, and on the second five thous
and dollars would pay only $50 a
year, and yet from tho estimates
made we feel assured the levying of
this tax will produce a revenue for
the government that will equal that
lost by the repeal of tho tax on
sugar.
"The present corporation tax
raised about thirty million dollars.
and as the special excise tax on in
dividuals raised sixty million dollars
more it will only place a direct bur
den on the wealth of the country
of about ninety million dollars, as
compared with seven or eight hun
dred million dollars that we must
raise to support the government. As
the wealth of the country receives
groat benefits from tho maintenance
of the government it is not believed
that the collection of thiB amount of
taxes from this source will be re
garded as unjust.
"There has been a universal and
general demand coming from all
parts of the United States for free
sugar, that the high cost of living
may be reduced to some extent.
"Tho removal of this tax will bring
relief to all, no matter how -humble
no matter how poor, and the burden
will be shifted to those who are pos
sessed of more than comfortable for
tunes and can .bear the additional
tax without serious inconvenienco."
Some of the special provisions of
the income tax, or excise bill, pro
vides that in computing incomes ex
penses aCtliallv InPlirrod in nori'V-
ing on a business, not including per
sonal living or family expenses, shall
be deducted, as shall interest on in
debtedness. National, state, school and munici
pal taxes, not including those as
sessed against local benefits, shall
bo deducted from the profits on in
comes of the person who actually
paid them. Losses by fire, ship
wreck, storm, etc., not compensated
by Insurance, and worthless debts
are to be exempt.
The term business as applied in
tho act is held to embrace everything
about which a person can bo em
ployed and all activities which occu
py time, attention and labor of per
sns for livelihood or profit.
The word "person" is held to in
clude natural persons or individuals
or persons or copartnerships.
One provision is drawn to elimi
nate salaried men who contribute to
the taxed income of firms or com
panies. Another provision would
direct all paymasters and disbursing
officers of the' United States to de
duct the tax from payments to go
ernment employes.
-WF!
pS HS11 WWW ;
t, JVv'?rvi
