The Montgomery advertiser., 1906-11-29
WEALTH TO FIGHT
 ROOSEVELT PLAN
PRESIDENTS SCHEME FOR, INFER
 ITANCE AND INCOME TAX.
Aims At Great Fortunes-Purp0ne ia Net To Galn Revenmes But To fre- vent Transmisaion of Big
 Estates.

rhere is every reason to believe that within the next week or two the couh fry will be conyulsed with a financial and economic discussion which Will so far overshadow other things that it VII, occupy the attention of Congress ana the people to the exclusion ot many other topics of interest of perhaps greater importance.
 Congressmen arriving here within tne last few days say there is extraoroi- nary interest manifested througnout tte country in the stand to be taken by the President regarding the pro posed legislation to strike at exagser- atedi fortunes. His speeches last spring and later at the dedication or tne Penh- s,,svsnia state House foreshadow the recommendations he will make 10 Coh- gress
 An inheritance tax and an income tax. graduated in such a way as to oper- ate harshly against great fortunes anu most Isrfent1y against moderate in- comes, seam to have aroused interest from div%HSSe points of view and largeiy according to the section of the countTy. system of taxation not on revenue basis but on a punitive basis Is what President Roosevelt expects to propose to Congress. and the proposal IS so rad teal. it attacks SO maisy vested interests, that fin the opinion of shrewd observers here it will provoke discussion in and cut of Congress Of far greater proper ttons than that which was stirred up by the Presidents unexpected demand for railroad rate legislation.
 strikes Popular Chord
 II will be remembered that the Pres- tdent's recommendations forsreform in the railroad situation go az to give the Interstate Commerce Commission power 10 fix rates came like thunderboit from a clear sky. Tn less than week the country was In a ferment because g. popular chord had been struck. ai- though the agitation before thet time in the same direction seemed 10 arouse no popular enthusiasm.
 There was suspicion of socialism about that proposition which was seiz. al mon at once by the railroads and hv ali their allied interests. But the neopIe looking the situation in the face determined that governmental regula- tion WIS not government ownershlp' and from the day that paragraph In inc message was made public until the rate law was finally passed by Com rress there was no time during whien thes demand for such reform showed any sfgns of diminishing.
 The railroads resorted to delay. they established literary bureaus, they went to immense expense In their endeavor fo educate the puDIlC tV luSH FSft-.ss - view. but without the slightest indica- lion of success at any time.
 More soefaliHtic Than Rate Edea.
 According to Congressman who have returned to washington for q few uaYs, and who had their ears to the ground during the campaign, the country ls m a frame of mind to lash itself into condition of perhaps hysteria by the rronosItion to limit the size of great gor4unes by preventing their descend'ns from one generation to another and oy attarking living incomes, without which fortunes cannot easily increase.
 The uroposition ia perhaps mucn more socialistic than that for the reg ulatfon of railroad rates. hut the mar cations are that 1t will prove even more popular. On the other hahY' there will be a great outcry from . peo- pie who have swollen fortunes, rom the great corporations. and from all those allied interests which have been knit together nowadays in such way as to consolidate railroads and build up the all-powerful trusts,
 This coming fight between the man | of moderate means and the rich man promises to take on extraordinary pro portions. Representatives of the peo- l ple who come from the West saw that
 an inheritance tax and an income tax | are by no means unpopular even In | cities and among 8 certain class o5
 moderately rich men.
 New England May Rebel.
 On the other hand, reports from New | England, and particularly Boston. tndi- cate that people in that vicinity are | becoming badly frightened over the possible results of the Presidents pro- posed attack on unhealthy fortunes New England people fear that he will rouse the greedy spirit among the people and that when they once learn | that they can constitutionally tax for | tunes and incomes, there will be nc bounds to the exercise of their power
 New England people. it is said. will | lombard the President the remainder of this week with letters and tele- | grams, urging him not to present this subject to Congress or to do so oniy | in such vague form that 1t will not becone necessary to take action. 1t should be understood distinctly in The first place that President Roosevelt ! has not advocated and will not advo- cate any mere scheme of taxation for revenue only. He wants to prevent inc accumulation of great fortunes. on the theory that wealth beyond cer- tain measure, when concentrated Tn the hands of any one man, Is a dan ger to the community, and should be prevented by an exercise or police power of the Government.
 How Income Tax Works.
 This kind of an inheritance tax and fhIs kind of an income tax is novelty Many States, like Illinois and New vorL fax inheritances and derive 8 large income in that way. The eoun- trv had an income tax under the Wll- son law passed in 1894, and It gave nrornise of rolling up an enormous revenue without being seriously bur densone on the people. Great Britain bas an income tax today which in- cludes rents as well as ordinary in comes. and which produces approxie mately now nearly $5,O0O,OO0,OO0 year. rs..,a.,,+ Roogevelt Is aiming at Great Britain is the greatest capitalistic country Tn the world. It's monarchy and it's Far liament are controlled absolutely Dy fine great wealthy middle class, and vel if submits to an income tax as fair means of raising revenue. The presidents notion Is much more radl- cal If he hZs ar income tax, he wants if so devised that 1t will bear lightly upon men of moderate incomes, put will soak" those who measure theF annual gain by hundreds of thousanas and even by millions or tens or mll- lions. ,... 1s Congress has the right to Impose It for one purpose 1t can do so for another I' Mir Rooseyelt's suggestion merely is that A tad this kinw should be lm- nosed byS# the Federal Government STaduated fn such a way that 1t will