Omaha daily bee., 1909-06-17

sable to the nations life in great crises.
Although | have not considered a consti-
tutional amendment as necessary to the
exercise of certain phases Of this power,
a mature consideration has satisfied me
that an amendment is. the only proper
course for it's establishment TO its full eX-
tent. l therefore to the con-
gress that both houses, by a two-thirds
vote. shall propose an amendment to the
constitution comforting the power to levy
an income tax upon the national gov
eminent without apportionment among the
states in proportion to population.
This course is much to be preferred to
the one proposed OF ~re-enaoting a law onoe
judicially declared to be unconstitutional.
For the congress to assume that the court
will reverse itself and to enact legislation
on such an assumption will not strengthen
popular confidence in the stability Of judi
cial construction OF the constitution. 1t is
much wiser policy to accept the decision
and remedy the defect by amendment in
due and regular course.
Again, 1t is clear that by the enactment
OF the proposed law the congress will not
be bringing money into the treasury
to meet the present deficiency, but by put
ting on the statute book a law already
there and never. repealed, will simply be
suggesting to the executive officers of the
government their possible duty to invoke
litigation. II the court should maintain
its former. view, no tax would be collected
at all. II 1t should ultimately reverse itself
still no taxes would be collected until after
protraeted delay.
1T is said the difficulty and delay in
securing the approval Of three-fourths Of
the states will destroy all chance of adopt
ing the amendment. OF course, no one
can speak with certainty upon this point,
but 1 have become convinced that a great
majority of the people of this country are
in favor of vesting the national govern
ment with power to levy an income tax,
and that they will secure the adoption of
the amendment in the states If proposed to
them,
Corporation Tax Urged.
Second, the decision in the Pollock case,
left power in, the national government to
levy an excise tax which accomplishes the
same 9 purpose as a corporation income
tax, and is free from certain objections
urged to the proposed income tax measure.
II. therefore, recommend an amendment
to. the tariff bill imposing upon all cor
porations and joint stock companies fol-
profit-exoept national banks, (otherwisC
taxed, savings banks and building and
loan associations, an excise tax measured
by 2 per cent on the net income OF such
corporations, This is an excise tax upor
the privilege of doing business as an arti.
fetal entity and of freedom from a genera
partnership liability enjoyed by those whC
own the stock. .
Il am Informed that a 2 per cent tax NJ
this character would bring into the treas
ury OF. the United States not less thai
SIS. 600, 900.
The decision Of the supreme court in IT,,
United States in the case of spreckeii
Sugar Refining company against McClair
-us2, U. s. S9O seems clearly to establish
the principle that such a tax as this is a,
excise tax upon privilege and not a direc
tax on property and is within the fedora
power without appOrtion according to
sH #""s 10 " O."