The Hartford republican. (Hartford, Ky.) 18??-1926, 1909-06-18
CORPORATE INCOM-
Els To BE TAXED.
Congress to Pass Such Law
at This Session.
Amendment to Federal Constitu-
tion to ce Proposed Making
Income Tax Legal.

Washington, ID. c., June 16.-The
Finance Committee has practically de-
termined upon the presentation of an
amen dment to the tariff bill providing
fo.' tax on dividends of corporations
as a substitute for the income tax
amendments. President Taft is hear
tily in favor of this form of special
tax and it will be known, probably,
as the Taft amendment. There are
many Republicans who feel it necessary
to vote for an income. tax, or some
substitute for the same purpose, and
when the President learned that the
Organization was stu short a few
votes necessary to refer the income
tax amendments to the Committee on
Judiciary, he gave new impetus to the
corporation tax proposition and adj
vised its presentation as a substi
tute. The details of the proposed
amendment are yet to be worked out.
A tax of two per cent. on the divi-
dends of corporations is the sugges-
ton of the President. but whether
that percentage will be adopted by the
committee remains TO be determined
and will depend largely, no doubt,
on the estimates of the probable rev.
enue. which are now to be compiled
with greater accuracy than heretofore.
One thing seems to be settled, and
that is that such an amendment will
provide for the imposition of this
special tax for a specified period, two
or perhaps three years. Some Sena-
tors are heartily in favor of the
Presidents plan, while other would
prefer to postpone the enactment of
special taxes until next year, on the
ground that it will then be possible
to determine the precise revenue pro-
ducing power of the new tariff law.
Those who favor it submit that tax
of two per cent. on the dividends of
corporations would be insufficient to
amount to hardship to any stockhol
ders; that such a tax would prove i'm
mensely popular with the great major
ity of the voters, ETC., and they be-
lieve, too, that were a proposition so
favored by the Chief Executive to be
incorporated in the bill it would in
sure for it a heartiness of support
by him and possibly a leniency in
dealing with the schedules which woul
facilitate the work of the Joint COM
mittee on conference. And last, but
not least, the claim is put forth by
those who favor such an amendment
that the Republican party would be
in better tactical position could
1t go into the campaign of 1910 with
a record of having enacted legislation
which is accommodating a surplus in
the Treasury instead of enacting a
measure which barely meets, or per-
haps falls just short of meeting, the
federal expenses.
An amendment to the Federal con-
stitution is to be proposed remov-
ing the doubt of the legality of
general income tax law
The announcement of the probable
substitution of this amendment for
the income tax amendments of Sena-
tors Baily and Cummins brought the .
two Senators together Immediately in
a determination to bury their differ
ences and unite on a common measure.
They have agreed on a measure which
includes the fundamental provisions
of the Cummins amendment and the
of the Bailey amend
ment, and they now insist that they
purpose to press its adoption with
all their power. This is interpreted { |
mean lineup of President Taft and
Senator. Aldrich. backed by the Re
publican organization on one side, and
Senators Cummins and Bailey back
ed by the "insurgent" Republicans
and the Democrats on the other side !
The income tax amendment agreed up
on by Senators Cummins and Bailey |
provides for tax of two per cent
Of all incomes exceeding $4,000 year
with a provision for the reimburse
ment of those stockholders in cor
porations whose total incomes do not
exceed $4,000.
Notice. ]