The Washington herald., 1909-06-30

The corporation tax amendment Of. the
tsri6 Pill Is now before The senate. Il
was called up for consideration and
damned with faint praise by rs leading
supporters. Senator Aldrich, the nominal
father OF the amendment. indicated that
ne had no love for IL, and that between
the corporation tax and the income tax.
the corporation tax was a choice Of evils.
Mr. Aidrich's remarks were interpreted
by many Senators as an admission thar
the corpo. alton tax proposal had been
presented merely as a means OF defeating
the pending Income tax amendment.
Senator Bailey. joint author Of the
Baiiey-Cumnains measure. which provides
foF the imposition both Of a corpora
tion tax ard d tax On Individual in
comes. asserted ma ar. AIdrieh had s5-
mitted that the corporation tax was
merely a su5terfuse 20 defeat the income
tax, and in spite OF NIr. Aldrich's denial
Mr.. Bailey persisted that Mr.. Aldrich-s
language admitted Of no other oonstrue-
ton.
Anticipates a Repeal.
But Il difference existed as 20 what NJ
Aldrich did say as 20 the puroose OF -ba
Finance Committee IN presenting rbe
corporation tax amendment. his langusee
vas clear and Unrnistakable when he ex-
pressed the opinion that This tax. II en-
acted would be repealed N two year. or
the rate OF taxation reduced. While ad-
hitting that the corporation tax was
good thing IN bringing in revenue 10 rneet
the existing deficit. and he was in favor
OF It for that reason. he said thar bs
believed that the tariff bin as re,o-+e5
originally from the Finance Committee
would bring in enough revenue 20 provide 4
Tor the governments needs.
What NJ. Aldrich had 70 say q, he
subject. ard knowledge OF the private 4
consideration which Senators are giving
70 the matter OF direct taxation LEADS
70 the belief IN some quarters that before
the tariff measure IS enacted into law
an effort VIII be made 10 substitute for
the corporation tax provision the pro,-l- I
sion Of the House bill imposing tax on Z
In his advocacy Of direct taxation as 4
means OF raising revenue. President Tafr
favored the Inheritance tax He suggest (
Cd II IN his inaugural address and backed /
IL Up in his message 10 Congress q. the
OF the present extra session.
he reached the conclusion
hat the Senate would not ACCEPT the in
tax. and he therefore entered
nto the arrangement with the Senate
eaders under which the corporation tax
amendment was proposed.
EOuse Bill Is Compromise.
No doubt exists that the Senate leaders
Till push the corporation tax amendment
But the expectation IN weH informed
Senatorial circles Is that as soon as the h
arin bil is sent TO conference the Sen
lte conferees viii show a decided willing
less 10 recede from support OF the cor
'oration tax, and VIII yield to the IN
istenoe Of the House ccnferees that the
Inheritance tax be incorporated in the
arin measure. The plan IS a little
iebulous, but enough has developed TO
how the present tendency.
Senator Aldrich aroused some interest
a the Senate yesterday by disavowing
ersonal responsibility for the corpora
ion tax amendment. He also disclosed a /
title unpublished history regarding Pres
dent Tsfts part IN bringing the matter
orcibly 10 the attention OF Congress. IN
identally. he admitted frankly that he
ras led 20 espouse the corporation tax
fter the President had suggested il sim
b to get rid of the income tax and he (
entured the prediction that If enacted !
he corporation tax law would remain IN !
)rce only about two years. :
The statements made by the chairman
T the Finance Committee were called out
= Senator Clay. OF Georgia 0Ir. CLAY
-as making a speech on the amendment !
fered by Senator Tiilman imposing a / Il
uty OF 10 cents a pound on tea. He F. q
ranched on into a discussion Of the =
Continued on Page 2, Column s.