The Washington times., 1909-06-23
Finance Committee Leaders
Profess TO Have the Votes
Right Now.
BAILEY UMMINS
PLAN SIDETRACKBD
Opposition TO Levying on Incomes
Reason for Followers of
the Taft Plan.

That the air has cleared consider
ably with reference to the enact
ment of a corporation tax measure
since the conference at the White
House last night, and that the way
seems clearer for the passage of the
law President Taft is advocating
was the belief expressed about the
Capitol today by conservative Re-
publican Senators who are favorable
to the imposition of a net earnings
tax.
Leaders Feel Certain.
The Finance Committee leaders to-
day profess 20 feel certain that the net
earnings tax measure will go through
not only the Senate, but both houses
of Congress. They deny vigorously that
SO far as they are concerned. there is
any purpose to put the corporations tax
and the income tax over until next ses-
sion or 10 sidetrack the plan proposed
By President Taft at any stage of the
proceedings. They say that they are in
a position where they have TO permit
one of two things to be done, either 10
allow the Bailey-Cummins income tax
amendment 10 pass OF 10 pass the cor
poratiOns tax bill. which President Taft
is advising.
They have concluded that IT will be
far better to pass the measure for the
taxation Of the net earnings Of cor
poradons- They do not really want
anything that savors Of direct taxation
and they are accepting the net earnings
tax plan for the reason that they regard
It as the lesser of two evils.
Loss But Per Cent
For instance, it Is pointed out that,
under the plan OF a tax on net earn
fngs Of corporations, the stockholder Of
a corporation would be deprived Of but
per cent Of the net earnings OF his
stock. which would go 10 the Govern
ment- But Under the Bailey-CUmmius
plan, the stockholder would be deprived
not only OF this amount. bur as an in
divfdual he would be subjected 10 a tax
on his general income. So far as the
wealthy stockholders Of the country are
concerned, they would pay much less to
the support OF the Government under
the corporations tax plan than under
the income tax plan.
we have the votes To pass the cor
porations tax. We do not know how
long il VIII take 10 put II through, but
il VIII 20 through this session. Not only
VIII the Senate pass IT, but IL will 90
through the House without any great
opposition there"
Look for Long Debate
This was the talk OF the Finance
Committee leaders as 10 the situation
today. They admitted that they looked
for long and animated debate.
The insurgent Republicans and Dem
ocrats in the Senate who are opposed
TO the corporations tax are awaiting de-
posed net earnings scheme IN print be-
fore they decide just what 10 do. But
10 Is certain their attack on the corpo-
rations tax viii be based on the idea
That the corporations tax is not as just
as a general income tax, and that Ii
is open 10 more constitutional objec-
hons and weaknesses than the income
tax.
Ready to Introduce.
II is expected the Administration plan
for a net earnings tax will be ready for
Introduction IN the Senate Thursday.
Today, there we're a number Of con
ferences for the purpose Of perfecting
the amendment This morning early
Secretary Knox and Senator Root were
az the White House. About il O'Clock
Attorney General Wickersham visited
the Capitol and went TO the Senate
chamber where ne ar once sought out
Senator Root. II was given out that
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