The Lee County journal. (Leesburg, Ga.) 1904-19??, 1909-06-18
TAX ION CORPORATIONS
President Taft Asks Congress to
Amend Constitutions
INCOME TAX AMENDMENT
Democrats VIII Stand for Income Tax
In Present Tariff BiiI---Hard
Fight Coming.

Washington, d. C.-Recommending
legislation locking to the placing OF
a 2 per cent tax on the net income
OF corporations, and also the adoption
of an amendment to the constitution
providing for the imposition of an in
come tax without 5appOrtionment
among the. several states, President
Taft sent to congress a message en-
bodying his views on the subject. This
action followed "a, protracted special
meeting Of the cabinet.
In. his message the president speaks
of the apparent inability of congress
to agree to an Inheritance tax, and,
as regards an income tax, he refers to
the decision of the supreme court iii
,ers' Loan and Trust Company, in which
the court held the tax to be unconsti-
tutional unless apportioned according
to population.
1T is" says the president, ''undoubt-
eddy a power YhfsK the government
ought to have M might. be indispensar
BILE to the naflon,s"1ife in. great cri-
ses." The amendment, therefore, he
declares, was the only. proper course.
Such an amendments to the constitu-
ton, he commended, was preferable to
the one proposed of reviving a law
judicially declared to be unconstitu'
tionaL
The amendment which he proposes
to be made Ito the tariff bill provides
for the imposition upon all corpora
lions and joint stock companies for
profit except national banks. (other.
wise taxed) savings banks and build
ings and loan associations, of an ex,
else tax of per cent upon the net
llcome of such corporations.
This; tax, it is said by him, will bring
an annual revenue of $4,000, 900
'This is a tax on privilege and not on
property he says; land is within the
federal power without" apportionment
according to population"
The ipresident points out that an
other merit to the tax on corporations
is the federal supervision, which will
give to the government, the stock
holders and 1.-The public knowledge OF
the real business transactions and the
gains and profits of every corporation
in the country
The adoption of the amendment, he
says, will make long step toward
that supervisory control of corpora
tions which may prevent further
abuse of power"
The message concludes:
II recommend then. first, the adop
ton of joint resolution by two;thirds
of both houses, proposes to the states
granting the federal government the
right to levy and collect an income
an amendment to the constitution
tax tsapportionment among the
states according to population; and
second, thee enactment, as part of the
pending revenue measure, either as g
substitute for, or I'M addition to, the
inheritance tax, of an excise tax upon
all corporations, measured by q per
cent of their net incomes" H
The message was referred to the
finance committee. -.
Five progressive republican sena
tors, Messrs. Borah, Bristow, Cum
minis, LaFollette and Clapp, conferred
to determine what their attitude is
to be in the fact Of President -Tafts
special message to congress favorine
the submission of the question to the
states for a constitutional amendment
and the. enactment of a law takine
the net earnings of corporations.
They decided that the presidents
plan is not inconsistent with their
demands for the adoption of an
amendment taxing incomes, and that
both may be adopted in harmony
They assume that the president
plan, Endorsed by leading republicans
on the finance committee, is desig.
mated to 'chloroform" the income
tax amendment, but, nevertheless. an.
nounce that they will continue the
fight for its adoption.
What the position of the democrats
in the senate will be. when President
Taft's program is submitted for a
vote has #not been determined.