Arizona republican., 1909-06-30
PLAN OF THE PRESIDENT
He Believed, Could Be Mod
 flied or Repealed When the Annual Deficit Should
 Disappear, Probably Ali ter the Next Year or Two

Washington, D. C., June 29.-With the tariff schedules disposed of, the senate began consideration of the in come and corporation tax today. The question of laying a tax on incomes received attention while the tea provis- ion was under consideration and 1t was then that the most interesting oc- currence of the day took place. This was the announcement of the real at tiude of Chairman Aldrich of the fi- nance committee toward the corpora ton tax provision which he had intro duced at the instance Of the president.
 MT Aldrich said that he advocated the corporation tax as a means of de- feating the income tax He also said that he thought that for the next year or two there would be a deficit in the treasury receipts, which he was willing to have made good by the income from the proposed corporation tax. He thought that ultimately the law could and would be materially modified if not entirely repealed. This declaration was seized upon by the democrats as confession that the corporation tax was a mere subterfuge to destroy the income tax.
 Before the debate began on the in- come and corporation taxes Senator Tillman pressed hard for a favorable vote on his amendment providing for a tax of 10 cents a pound on tea. The amendment was defeated, 55 to IS.
 ] When the income tax question was formally taken up Senator Lodge moved as a substitute for Senator Bai- leys straight income tax proposition, measure providing for countervailing duties against countries imposing du- ties on articles exported to the United States.
 Mir. Aldrich immediately moved the corporation tax proposition as an amendment to the Lodge measure, thus giving the corporation tax the position of a third degree" amendment beyond which no further amendment can be offered in the senate.
 MT Flint who will have charge of the corporation tax provision, spoke at length in explanation of its provisions, and was followed by MT. Dixon, who advocated an inheritance tax. MT. Flint expressed an opinion that at the rate of per cent on the net earnings Ol lit NuulAiNs AlAt ltNNiAut RChAh bt augmented to the extent of $40,O0O,OOO or S50,00O. .000 Senator Kean placed the figures at s1OO,O0O 900.
 During MT Cumnins' speech, Mir Al drich declared that with the additional revenue to be provided by the corpo- ration tax. he would be greatly sur prised if there is a deficit next year. His estimates of the expenditures for the present year when the tariff bill was reported to- the senate, he said, were about S9,OOO. 900 too high. The deficit for the present year. he added. would be about s60,O00,000. He de- clared that if the tariff bill became a law in its present form, it would, next year, produce an income of about s35e ,00O,O0O. Mir. Flint said that the finance committee had not been united as 10 whether it would be necessary to have revenues in addition to those pro- duced by the tariff. The committee had considered not only a. corporation, but also an income tax law, as supple mentary to the tariff. and had decided f would be unwise to pass an income tax bill. The committee had, he said, abandoned the idea of an inheritance tax because such tax was so largely imposed by states and they did not