The Washington herald., 1909-06-25
NEW TAX MEASURE
READY FOR SENATE
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the possible exception Of one. and he has
occasionally shown some insurgent tend
encies.
This is Senator Piles. Of Washington.
VINO Is an advocate Of q tax on individual
incomes in preference TO a tax on cor
poration incomes, and whose name has
never been erased from the list OF Re
puoieans who were regarded as willing
70 enter into the Democrat -insurgent
republican coalition formed by Senator
Bailey, OF Texas, and Senator Cummins.
Of Iowa. 10 bring about the adoption OF
the Bailey-Cummins amendment. which
provides for the imposition OF a tax on
individual incomes as well as on cor
poratiOn incomes.
Realize Its Popularity.
The Senate Republican leaders realize
the popularity OF the income tax propo-
sition in the Senate. ard Sce taking no
chance in the effort 10 prevent the adop-
ton OF the Bailey-Cummins amendment.
They have canvassed the situation pretty
thoroughly, and are aware OF the views
and disposition OF nearly every Senator.
The insurgent Republican forces. which
were committed 70 the income tax. have
disintegrated, until now only about seven
insurgents are expected 10 vote for the
Bailey-Cummins amendment in preference
! 10 the corporation tax amendment pro-
posed by President Taft and the Finance
Committee.
On the original list Of insurgent Re
publican Senator'S who were expected 70
vote for tie Bailey-Cummins amendment
and against the corporation tax amend
ment. Senator Cummins had nineteen
names II IS now admitted BY the hard
and-fast insurgents that an even dozen
OF the Senators whom Senator CuumIns
had on his list have returned to the
regular Republican ranks and viii vote
for the Finance Committee amendment,
one OF the main objects OF which IS 70
sidetraek the effort 70 provide for the
imposition OF a tax on individual incomes.
Most OF the insurgent Republicans are
IN favor OF a tax on Individual incomes,
and II has been the understanding IN the
Senate that II a direct vote were OBJ
tained on the straight income tax propo-
siCion, practically the entire body Of in
surgents would 60 contrary 70 the wishes
OF the Republican leaders.
But a majority OF the income takers.
who inclrde IN their number several Re
tinue 10 follow the organization leaders
and the wishes OF President TAFT, II a
way Is shown 20 them 70 do 50 that viii
not place them in the attitude OF having
voted against an income tax without fur
nishing substitute legislation that would
tend TO satisfy the most radical Of their
constituents.
The leaders have aimed 20 point out
this way 70 them in the presentation or
a Joint resolution 10 enable the States 20
pass on the question OF amending the
Constitution, 80 that Congress nay have
the undisputed right 10 impose a tax on
individual incomes, and the amendment
20 the tari1 bin providing for levying a
2 per cent tax on the net incomes Of cor
p0rations. Those Republicans who have
been incIined % vote for an income tax.
but VIII raise their voices IL behalf Of
the adoption Of the Finance Committees
programme, VIII defend their course on
the ground that as long as there Is a
question as 70 the cOnEututiOnality OF an
income tax Il would be uuwise and IN
tudicious 70 enact income tax legislation
prior 20 the adoption OF a constitutional
amendment
VIII Pave Way.
They VIII contend that the jolnt reso-
enactment OF an income tax law Is pref
erable not only for the reason that the
Supreme Court probably would declare
the law unconstitutional, and thus rob
the Treasury OF expected revenue. but
would. in effect. be a reflection on the
Supreme Court itself, IN view OF Its de-
cis!on that the income tax law OF 1894
was null and vold
According 10 the position OF these SEN
atorS a certain instead OF an uncertain
means OF revenue will be provided by
the imposition OF a tax on corporation
incomes, which, they contend. viii have
the additional advantage or giving Fed
eral supervision over the expenditures
and business methods OF corporate
bodies
The programme of the Republican lead
ers IS 20 offer the corporation tax amend
ment and the joint resolution with refer
ence 70 amending the Constitution as sub
stitutes for the Bailey-Cummins amend
ment They believe these two PROPOSE
tions. when brought before the Senate
for a final vote, will receive the support
OF many Democrats and probably ali OF
the Republicans, including the insur-
gents.