New-York tribune., 1909-04-21
PRESIDENT LIKES BILL
SEN4TE THRIFT WE4SURE
PLE4SES DIR. T-lFT.
U'M Not Urge -ddoption of Special
Teration- Thinks Income Tar
Last ErpCdiCRf.

washington. April 2o.-The President indi-
cated 10 some Of his callers to-day that the Sen
ste substitute for the Payne tariff bill met with
his approval that he not disposed to urge
the adoption Of any form of special taxation.
snd that lac was entirely satisfied with the
sldrich plan Of testing the revenue producing
ners Of the Senate hin during the six months
intervening between its passage and the begin
ring Of real work in the regular session Of Con
press about january l. with q view 10 urging
additional revenue producing legislation at that
zine If the Ald-ich estimates proved oversan-
guine.
President Taft said that while he was not op-
,osed T. an income tax per Sc. he would dis
tinctlv favor Two other forms of taxation as
,,refera BILE and would regard a tax incomes
as a last expedient- He indicated that no argu-
rnent thus far presented in opposition to an in
hertance tax appealed to him as conclusive. hut
that If sufficient revenues could be produced by
g straight tariff measure without recourse to
srecial taxation he would he deeply gratfcd.
President Taft told his callers that he was
5isnosed TO coincide with the view expressed
edforially in The Tribune this morning. that
Nr Aldrich was somewhat oversanguine with
regard 10 the revenue producing capacity OF
Ns tariff substitute. and especially with re-
rsrd 70 the possible economies to be effected in
the administration of the government. He
thought some economy could be effected in the
sdrninistrat ton of the army and navy. but
hardly as much as Mr. AIdrich thought How
ever he 4-as amply contented. he said. to per
nit TIE experiment 10 be tried. holding in re-
serve all recommendations of special taxation
until next winter
discussing with some of his callers the var
,ous forms of special taxation. Mr.. Taft clearly
indicated his preference for the inheritance tax,
with the tax on the dividends of corporations
ss his second choice. He admitted that he had
cherished some regard for an income tax, out
that he had come TO regard ii as injudlclous leg
isation except a last resort. He said tnal
If special taxation were necessary he would
favor the inheritance tax, because easiest and
most certain Of collection. There Tere three
forms of a tax on corporations. he explained,
and he had not decided which was the best. one
would be a straight tax on the gross incomes
of corporations: another a tax the net in
comes Of corporations or the dividends. and
third on the fund from which dividends We're
paid. He believed the subject worthy Of earnest
study as it might be necessary to recommend
one or another Of these forms next winter.
He said he had always favored an income
tax but only as a last resort. He thought, other
things being equal. it would be wiser not to fly
In the face. SO 10 speak. OF the decision OF the
supreme Court, but. more than that. he was
disposed 10 agree with MI Gladstone that IAN
income tax made nation Of liars and perjur-
ers-: that almost inevitably the heaviest bur
den would fall on tn moderately rich rather
than the very rich and that, Of course was
a serious objection.
II. Taft told his callers that he would have
sed 10 see bill containing all the reductions
Il the tariff provided by the Payne bill. plus all
those included in the Aldrich bin. but he
disposed to regard the Senate substitute
excellent measure and would certainly inter
pose objection if il were adopted in its pres
ent form.
Those who have discussed tie Aldrich bin
with the President believe that he has been
completely over by the arguments Of the
chairman Of the Finance Committee and that he
viii lend his influence. in lar he deems
II proper to exert it, TO the adoption of the
measure 10y the Senate and its acceptance by the