Evening bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1895-1912, 1909-07-01

sion. makes It appropriate for me to
submit to Congress certain additional
Recommendations
THE decision of the Supreme Court
in the income tax cases deprives the
national Government of a power which,
by reason of previous decision of the
Court. II was generally supposed the
Government had. II is undoubtedly a
power that the national Government
ought to have. It might be indispens.
able to the Nations life In great
crisis. Although I have not consider.
ed constitutional amendment as
necessary to the exercise of certain
phases of this power. n mature con.
sideration has satisfied ME that an
| amendment Is the only proper course
for its establishment to its full extent.
Recommends Amendment.
Il therefore recommend to the Con.
gress that both houses, by n twohhirds
vote, shall propose an amendment to
! the Constitution comforting the mower
to levy an income tax upon the Ma.
tional Government without apportion.
ment among the States I'm proportion
to population,
This course is much to be preferred
to the one proposed. of ro.enactinr n
law once judicialIy declared IN he nm.
constitutional For Congress to as.
sumo that the court will reyerse II.
self. and IN opoc, ,og,,,o,;o, nm oroh
ASSUMPTION will not strengthen non.
ular confidence in tho STABILITY of tho
judicial construction n, tho Cone,i,u.
ton II is mucb wider no,icv IN NJ.
cent the Constitution and romody tho
defect in due and regular course
w,,u. D..
Again II IL clear that hv tho o,oc,.
ment of the nronosed ,,w ,ho Conano,,
will NOT he bringing ,,o,o, IT, ,,o
treasury IN mao, m, ,rosa,, laa,,a,
CIV. but nv uniting IN Tho s,a,u,a hoo,,
law aJraodv ,baro ,r.I ro,or .o,,o,,
ed will simnIv no sug,os,,,o go a.,
executive officers of the coyor,ran,
their nossjb,. d,,tv >, ,r,,,,o ,,,,,,.,,,,,,
II the court sbould maip.,i, nc ,or,or
view. no tax womb he coI,ected NJ nj,
II II should ultimately reversa i,so,r
still no taxes Womb h,y. beor co,,oo,.
ed until after rrotr,ct,a ,o,oy
at is said the .diG,cu,tv and DALAI
In securing the onnrovnI or ,hroo,
fourths of the States v,,u dos,r,,. o,,
chance of odontInp tho ouo,dr,o,,
or course. mn ono go, snooL Win oo,
tainty upop this MONT hut hora ha
coma con,j,,o, 81 =.
of the people or this country arc IN
favor of ,estingt the National covorn.
ment with mower m low On iroono
tax
Second. the decision IN tho po,,oor
case left uowe, I'm tho National CO.,
eminent to levy an excise inv which
accomplishes tho samo ,,r,oso a., -
corporation income fay md 10 ,roa
from certain. objections urped IN tho
proposed income tax measure
Would Tas 'corporations
Il therefore recommend n, o,,o,a
ment to tie tariff hin in,ros,,g mo,
all corporations and Joint stock cn,,.
panies TO, profit except national horL,
otherwise taxedD. savings b,pks and
building and loan societies an income
tax measured nv 2 per cent of tho ma,
income of such incomes This ia -,
excise tax upon the priviIeyo n, do,na
business as. an artificial entity and
of freedom from n general nnrtnershI~
liability enjoyed BY those who own tho
stock.
Il am informed that n mar co,, ,ov
OF this character wouId hring into tho
Treasury of the United stotas mn, ,oss
than 1925, OOO. 900.
The decision Of the su,ro,,o rou,,
in the case of tba SnrecLo,s &C., D.
fning Comnopy ayoin,, MoC,at,
seems clearly to establish Tho ,ao,
that such n tax AS This 10 nm ovoioa
tax upon privilege and mot n diroo, ~.