Vilas County news. [volume] (Eagle River, Vilas County, Wis.) 1896-1927, 1909-06-23
PRESIDENT TAFT IN SPECIAL
MESSAGE WILL SUGGEST
TWO PER CENT.
ALSO PROPOSE CONSTITUTIONAL
AMENDMENT PERMITTING
INCOME TAX.
EXECUTIVES ACTION RESULT OF
CONFERENCE OF LEADERS
IN SENATE.

washington, June Io.-fleSiueHl
Taft today will send to congress a
message urging the passage OF an
amendment to the tariff bill impos-
ing a tax of two per cent. upon the
undistributed net earnings of corpor-
ations, and the adoption of a resolu-
ton submitting TO the several states
an amendment to the constitution
giving congress the power tc impose
a tax on incomes. This understand
ing was reached at session OF the
cabinet yesterday and was approved
by the republican leaders OF the SEN
ate who conferred with the president
during the afternoon and evening.
In order that there shall be no queS-
ton that two propositions to be re-
commended have the support of the
administration, Attorney General
Wickersham, according to the present
plans. will draft both the amendment
and the resolution. 1t is expected
that the corporation tax amendment
when introduced, will be referred 10
| the committee on finance, and the
resolution submitting the question of
amending the constitution will go to
| the committee on judiciary. Doubt
| less both these committees will re-
port promptly so that all the ques-
lions involved may be disposed of on
! Friday, when the pending income tax
amendment will be taken up for con-
| sideration
In view of the emphatic stand taken
| by President Taft against direct
| tax on incomes, in the face of the de-
cision of the supreme court of the
| United States on that subject, and
| his preference for the proposed tax
| on net earnings of corporations, a
number of progressive republicans
| have signified their intention of fol-
| lowing his recommendations At the
same time not all progressive repub-
licans are satisfied with this admin
| istrative program, and it is probable
| that some of them will voice a Wig
| orous protest. Democratic senators,
| also, are expected to indulge in strong
| criticisms denunciatory of the tax on
| corporations as a substitute for the
| direct tax on incomes
| Not only is the president favorable
| TO an amendment providing for a tax
| on net earnings of corporations be-
| cause of the added revenue it would
produce, but much more so on &C.
| 81 fon haf hn
would bring about helpful and
healthy degree of publicity relative to
| the affairs of the corporations of the
| country. This, he as well as many of
| his advisors, believe would be re-
form which otherwise it would be i'm
benefit 10 corporations, it is argued,
would arise from the fact that it
would, in a way, stamp upon them
/ the approval of the national govern
ment, and sentimentally, if not legal
/ ly, supply federal endorsement which,
it is believed would not increase
! their credit with domestic investors,
| but with owners of foreign capital.
The president is said to be con-
WINGED that if the suggested amend
ment is properly drawn it would give
| government officials access to the
| books of all corporations, and thus
publicity would be assured. Such
] legislation would mean supervision
| which, ii is contended, would be help
| full to the corporations and satisfying
| to the general public. 1t is believed
| that this publicity would prevent
what is considered to be one of the
! evils of the day. in that it would
eliminate the possibility of concealed
| equities, and in the language of one
OF the presidents advisers, do away
with corporation melon cutting" and
insure responsibility for corporation
! management to stockholders.
1t is understood to be the presi-
| dents opinion that the provision for
| the imposition of such tax can be
| framed on the basis of the internal
/ revenue law, giving the government
| full power to investigate the books of
corporations for the purpose of de-
termining their earnings. He also