The evening times. [volume] (Grand Forks, N.D.) 1906-1914, 1909-06-10
TAFT IN FAVOR
Of AN INCOME
TAX MEASURE
Wants the Larger Corpora
tions Taxed Two Per Cent !
on Their Income q
attempt TO REACH some
COMPROMISE ON SUBJECT

Leaders Of Two Republican Factions
in Senate, the House Lenders and
the President Seeking to Avoid a
Party Breach. . ,-,.. o.
J,
Washington, June 1G-After ION.
ference at the white house yesterday
between President Taft and Senator
Aldrich, it was stated that the finance
committee would consent to placing
a two per cent tax on the net earn.
lngs of corporations if the supporters
OF the income tax amendments would
accept it and withdraw their propo-
sition. This suggestion, it is declar-
ed, came from President Taft and
was designed to prevent split in the
Republican party over the income tax
feature. Mr.. Aldrich communicated
the plan to Senators Cummins and
Borah, who are the leaders of the pro-
gressive Republicans who have favor
ed the Cummins income tax amend.
ment. These senator's consulted with
their colleagues and, as a result, the
plan was repudiated by them. Mr..
Aldrich consulted also with Repub.
lican leaders who are opposed to the
income tax idea and he had no better
success with that faction than with
the progressives.
BY an order of the senate the in
come tax proposition will come up to-
morrow for vote, but in view of the
unsettled condition. a motion will be
made to postpone action and the in
dications are that practically all Of
the Republicans will supprt the post
pcnement. 1t is expected that Sena-
tor Bailey will protest vigorously
against this delay and that some gem
eral debate on the income tax amend
ment will result. 1t is not expected
that Senator Aldrich will move to re-
fer the income tax amendment to the
judiciary committee, but that he will
leave it before the senate so that fur
ther conference may be had between
the two factions of the Republican,
members of the senate.
Against Inheritance
The canvass of the senate in rela-
tion to the corporation tax plan de-
veloped also that there is decided OPP
position to the inheritance tax feature
which was adopted by the house at
the behest of President Taft and was
stricken out of the bill by the senate
committee OH finance. The income
tax advocates are encouraged by this
showing and it was said today that If
President Taft desires to gain their
support he must lend his influence to
aid them in obtaining some agree
ment by which the income tax feature
shall be brought to vote.
In view of the short time that re-
mains before the date popularity fixed
in the public mind for adjournment
of the present Session. some of the
income tax advocates are not inclin-
ed TO insist upon vote at the present
session if there can be coupled with
the motion to refer the proposition
to the judiciary committee, instruc- J,
tions that the committee shall report !,
to the senate early in the next regu-
lar session. They will make an ef-
fort to incorporate instructions of
that character in any motion that is /
made to refer the amendments to COM
mittee.
In the next few days number Of
conferences will be held between the
two Republican factions in the SEN
ate, between senate and house lead
ers and between supporters and op-
ponents of the income tax amendment
and President Taft. The position TAX
en- by the Democrats in the senate
on the subject of the income tax has
convinced Republican leaders that
some party policy must be worked
out of the conglomeration of ideas on
this question.
So far as the pending tariff bill is
concerned. some Republican leaders
fear that any plan to tax the net earn
ings of corporations might be hailed
as a Democratic idea for the reason
that Senator Daniel has pending an
amendment to do that very thing. His
amendment was introduced soon after
the bill was reported from the COM
mittee.
During the afternoon some doubt
was expressed in informal discussion
of the corporation tax proposition as
to whether President Taft favored a
tax on dividends or tax on the net
earnings of corporations over $780,
900. Both plans were discussed.
Whichever idea is favored at the
white house. 1t is said that no sup
port could be found among the sena-
tors who advocate the adoption of an
amendment providing for a tax ON
incomes.