The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1909-09-22

the owner lives or dies. and will
pass on by succession Of law I'M
diminished and without reducing
the capital. This distinction justi-
fies making a difference between
tax upon the income of corporations
and that of individuals where they
earn their income by services. either
by. making the rate less or by not
taking the earned incomes at all.
The latter is the effect of the cor
poration tax
1t is tax easily collected-one
that no corporation can escape-one
in which perjury can not play any
to escape it.
Another feature of it is that IN,
cidentally 1t will give the federal
government opportunity to secure
most valuable information in re-
spect to the conduct of corporations,
which they are required TO show
In general terms in public re-
turn. In addition. the law provides
that means under proper iimita-
lions of investigating fully and In
detail their course of business.
Up to this time we have no ade
auate statistics concerning our cor
porations. Even the stock noloeIs,
whatever their right may De 10
8
porations. are generally In state OIL
Complete Ignorance. and any instru-
mentality by which corporations
shall be compelled to disclose VII.
accuracy a general statement OF
their conditions certainly makes Tor
the public good Indirectly 1t would
help very much in another revision,
whenever that shall come, because
corporations engaged lin business
will have upon record in Washing
ton their exact financial condition
from year to year in the matter or
their income, their expenditures ana
their debts.
Assuming the constitutional au-
thority to have been given, l am OPP
posed to general Individual IN.
come tax law, except in times OF
great national stress. am opposed
to it because of the dificulty al
ready alluded to that it puts such a
premium on perjury as to have LED
other governments to abandon that
and of imposing the tax whenever
possible on the sources of income In
the hands of those who are not ulti-
mately to Fay it..
But I am most strongly in favor
of adoption by the states of the
the amendment authorizing congress
to impose an income tax without
apportionfng it among the states &C
cording to population: and l am
strongly in favor OF this because in
times of great stress. If war or some
other calamity were to visit this
country, and we should need 10
would be one of the essential ipstru-
ments by which we could collect
large amount of money to enable us
to meet the exigencies.
%ox II ant
passes, as / hope it may. We can
then enlarge the corpora ton tax SO
as to include a proper burden on the
bond holders in corporations as Wei
will make this instrument of taxa
ton even more equitable than 1t
now is.
Those who favor directly per-
restraining great wealth will prob
ably find 1t ineffective for the rea-
sons given.
have already considered in a
speech which hoM made ra IN cSlpmDss
could be divided without drastic
confiscatory methods. 1t seems TO
me now as 1t did then that the
proper authority to reduce the size
Of fortunes is the state, rather than
the central government.
Let the state pass laws of inher-
itance which shall require the divi-
sion of great fortunes among the
children of the decedents. and shall
not permit a multimillionaire to
leave his fortune in trust so as to
keep it In a mass: make much more
drastic the rule against perpetuities
which obtain at common law, and
then impose heavy and graduated
inheritance tax which shall enable
the state to share largely in the
proceeds of such large accumula-
lions OF wealth which could hardly
have been brought about save
through its protection and it's aid.
In this way, gradually but effec-
lively. the concentration of wealth
in one hand or a few hands will be
neutralized and the danger to the
republic which. has been anticipated
by a continuation through genera
tions of such accommodating fortunes
Will be obviated; The use of the in
come tax itself for this purpose will.
think, never be very successful
because of the defect already indi-
cated-the difficulty of finding the
income upon which to impose the
tax and the opportunity that perjury
Will offer to escape It.
A. a =