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Show EXCISE BILL IS PASSED Senate Measure Will Tax All Incomes That Exceed 5,000 Washington, July 26. Democrats and progressives united again in the senate tonight and by a vote of thirty-six to eight passed the Democratic excise tax bill, extending tho present tax on corporations to tho business of individuals, private firms and copartnerships. co-partnerships. Attached to tho measure meas-ure also by the aid of Republican votes, were amendments for the repeal re-peal of the Canadian reciprocity law and the fixing of a two dollar por ton tariff on print paper; and for the establishment of a permanent nonpartisan non-partisan tariff commission The passage of the excise bill became be-came certain early In the day; and the Republican leaders offered little oposltion to It Senator Borah in a fight to have his income tax bill substituted sub-stituted for the "tax on business" lost by a vote of 33 to 23 although he mustered to his support many regular reg-ular Republicans and four Demoorats Ashurst. Culberson, Hitchcock and Martine. The Democratic majority stood almost al-most solidly against anv change In the house bill that would threaten its defeat They declared the "tax on business" was clearly constitutional, constitution-al, while an income tax had once been held unconstitutional by the supreme su-preme court and might again suffer that fate. On the passage of tho excise bill the bills were supported by the following fol-lowing progressives and insurgent republicans: re-publicans: Bourne. Bristow. Clapp, Crawford, Cummins, Gronna, Jones, Kenyon, La Folletto, Nelson, Poindexter, Town-send Town-send and Works. Tho measure was changed from the original house bill only in minor particulars par-ticulars except for the addition of the Canadian reslprocitT repeal and the permanent tariff commission provision. pro-vision. It will go back to the house for the approval of that body and It is believed an agreement soon will be reached so that a perfected measure can be laid before the president. The excise measure would levy upon up-on all persons, firms or copartnerships, copartner-ships, an annual tax equal to one per cent of net income, in excess of 5,000. Divide on Measure. Senator Cummins permanent tariff board amendment, which. was carried yesterday In the wool fight and then lost in the final upheaval when the La Follette bill passed was attached to the excise bill by a vote of 2S to 29. All Democrats except Pomerone of Ohio voted agalust the tariff board, while all Republicans except He-yburn of Idaho supported it The chief fight aside from that over Senatoi Borah's Income tax measure, came upon the Canadian reciprocity amendment offered bv Senator Gronna Gron-na of North Dakota. The amendment adopted by the senate. 37 to 26. provides pro-vides for the complete repeal of the reciprocity law and for the establishment establish-ment of a rate of two dollars per ton on print paper Imported from Canada Cana-da in place of the present duty of $3 75 The text of the provision flvlng a new tariff on paper follows: "That rrom and after the passage of this act tho duty on chemical wood pulp shall bo one-twelfth of one por: cent per pound dry weight If unbleached, un-bleached, and one-eighth of one per cent per pound If bleached, and the duty on printing paper as described In paragraph 409 of the act approve August 5. 1909. (the Pavne Aldrich tariff law) shall be one-tenth of one per cent per pound if valued at not above three cents per pound; two-tenths two-tenths of one cent per pound If valued val-ued above three cents and not abovo fivc cents per pound; nad soven and one-half per cent ad valorem if valued val-ued abovo five cents per pound. Tho sonate changed the oxcibo bill so that tlie tax would not apply to labor organizations, agricultural associations as-sociations or fraternal organizations. A plan to check the tobacco monopoly by a special excise tax on production produc-tion above a certain amount, offered by Senator Hitchcock, was dofeated. The third ot the Democratic tariff measures, the sugar bill, will come up tomorrow. It Is believed the combination com-bination of Democrats and progressives progres-sives will continue throughout the third day of the tariff program so that a sweeping reduction in the sugar tariff will be approved. The Democrats have determined to support Senator Williams' bill providing provid-ing a one-third cut in all sugar tariffs tar-iffs and n cut of forty per cent on the molasses tariff. The bill provides a basis of rroe sugar but this will not be endorsed by the Democrats. It Is expected that a compromise measure will bo offered by tho Republican leaders reducing tho existing duty of 1.93 on refined sugar by from twenty twen-ty to forty cents per hundred pounds. This compromise may be adopted by the senate, but It Is expected that in the end it will give way, as the compromise woll bill did, to a progressive pro-gressive bill further reducing the duty. nn |