Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1909-06-22
CORPORATION TAX AMEND.
MENT TO Be DECIDED TONIGHT:
Conference Will Be Held at White House,
Senate Devotes Day to Discussion
OF Tariff on Hides===f1Ouse Sends
Census Bill to Conference.
THE CORPORATION TAX.

Washington, June 2i.-President Taft
will personally supervise putting the fin
i.bing touches upon the proposed amend
ment to the tariff bill providing for the
IMPOSITION of a > per cent tax upon the
net earnings of corporations. This will
be done tomorrow night at conference
at the White House
There will be present Attorney General
Wickersham and Senator Root who are
drafting the amendment; Secretary of
State Knox and Senators Aldrich, Bur-
rcws, Penrose, Hale, Culom, Lodge. Nc
Cumber, Smoot and F'lynt. constituting
the Republican membership of the finance
committee. The draft prepared by
Messrs Wckersham and Root will be
discussed at the conference. Such
changes as are agreed upon will be made
by the attorney general on Wednesday
and it is expected the perfectly amend
ments will be ready for introduction in
the Senate on Thursday. The attorney
general and Mr. Root had a long meet
ing at the Capitol today and reached an
agreement on practically every feature of
the corporation tax plan. The portion
which is giving them the greatest trouble
relates to the government control of cor
porations necessary to carry the law into
successful operation. There has been no
little opposition to subjecting the cor
porations to the amount of publicity that
will be required for the enforcement Of
the law and to prevent manipulations of
stocks and bonds for the purpose of eva
sion.
Members of the finance committee as
we'll as Mr.. Root and Mr.. Wickersham
agree with President Taft that such pub
licty must be given and that without it
the corporation tax would be a failure.
This feature, it was said today, will GER
tainly be incorporated. The authors of
the draft. however, are experiencing diff
ficulty in finding an effective way of
reaching the situation.
Among the details of the bill determin-
ed upon today are that the tax to be
levied will be at the rate of . per cent
and that it will be collected from all cor
porations. All banks will come within
the range of the tax but deductions will
be allowed national banks to the amount
of taxes paid upon their circulation.
An important provision to be included
in the bill is a definition of net earnings
THIS will follow as nearly as possible
the definition of earnings contained in
the interstate commerce act relating to
railroad corporations
Questions as to the constitutionality Of
the proposed corporation tax do not dis
turb the President. The right to impose
such tax has been distinctly upheld in
a case before the supreme court-that Of
Spreckles VS.. the United States. This is
point wherein the President believes
his corporation tax scheme should out
weigh an attempt to pass an income tax
at this time. If an income tax were pass
ed njunctions against it's collection could
be secured because of the supreme court
decision declaring unconstitutional for
mer act of this character
The President does not believe there is
any immediate way to stop collection on
the corporation tax. The courts must
presume it to be constitutional under de-
csons of the past and hence no injunc-
ton would issue.
There seems now to be little doubt
that the corporation tax as passed will
exempt net earnings of $1,000 and less so
as to take any undue burdens off the
smaller corporations. ms is the under-
standing at the White House and appar-
emily it is the plan of the Senate leaders
The collection of the proposed corpora
ton tax would be under the direction of
the internal revenue bureau. and while
additional inspectors and other employees
would be necessary. it is not believed that
any added authority would be required.
The internal revenue authorities would
act in harmony with the bureau of cor
porations of the department of commerce