The Evening statesman. [volume] (Walla Walla, Wash.) 1903-1910, 1909-09-22
Guest of a Democrat.

ital''
Guest of a Democrat.
While here the president is the guest
Of United States Senator Hughes,
democrat He held a public reception
of two hours this afternoon at the
state capitol. At the auditorium to-
night Mr.. Taft touched briefly on the
tariff, saying that while a revision had
seemed essential there was also a de-
felt in the treasury to be met. This
partly will be met by cut of $40,-
0OO,OO to $5Oo0O00O in the appropria-
tons to be made by congress and part
" by the incomes from the new COR
poration tax law. Mr.. Taft said he
had favored z. first an Inheritance tax,
but the objection that the states had
pTeempted that field had sufficient
weight to defeat the proposition.
The president then continued:
A part of the republicans and all the
democrats in the senate unite in press
ing consideration of the general income
tax on individuals throughout the
United States. The law was as nea'
as it could be made to the income tax
law which had once been considered
by the supreme court some ten years
ago and which was held to be uncon-
stitutional by vote of five to four.
Tax in Excess of Needs.
1t was conceded that the tax would
probably raise from $150,000,0 to
$500, 100000, which was far in excess
of the needs of the government if the
tariff bill We're to retain its general
form, as proposed and so to produce
revenues which should be reasonably
expected Our friends. the democrats
favored the income tax with a view to
substituting it for the tariff as an in
come producing measure, thus mini
MIXING the effect of the tariff in pro-
tecting the industries of the country.
In other words the passage of the
income tax bill would have the demo-
Gratis support probably to the PROPOSE
ton to have a tariff for revenue only
and would have interfered with the
protective policy to which the repub-
lican party is pledged.
Declared Unconstitutional.
One further objection to the income
tax amendment was that it had been
declared unconstitutional by the SUI
preme court, and to invoke a second
decision upon that issue was to ques-
ton the uniformity Of the decisions of
the supreme court and to drag the
court into political discussion, which,
whatever it's decision, would not Dor
its standing as an impartial tribunal
before the people. 1t indicated dl-
versity of views before congress and
the country and the courts in its. CO.
ordinate branches with reference TO the
constitutiOnality of the law which is
unwise to perpetuate in formal sta
tute But the income tax amendment
seemed quite likely to pass by the vote
of all the democrats and sufficient
number of republicans
Therefore, those who were opposed
to the income tax amendment looked
about to see If compromise could not
be proved less Objectionable than the
income tax amendment. which would
satisfy enough republicans who were
inclined to favor the income tax to pre- |
vent the passage of that amendment. |
Such a compromise was found in |
proposal to pass the present cor
poration tax and also the joint reso-
luton referred to proposed an amend
ment of the federal constitution to |
the states authorizing the government
to impose an income tax without APP
portioning it as direct tax. accord
ing to the population of the states
Provisions Provide Exemptions.
The provisions for the corporation
tax in the bill exempts all corpora
tions whose net income does not ex-
coed $4,000. 1t is therefore in erect
an income tax-that'is it taxes earn
ings actually made. 1t is tax upon
success and not failure.
THE most Objectionable feature OF
a direct income tax is in the premium
upon perjury which it offers to those
who are willing to conceal their IN
matter not at all dlmcut
to do-and who thus subject TO mucn
heavier proportionate burden those
who are conscientious in making tnelr
80 hn