The Denison review. [volume] (Denison, Iowa) 1867-current, 1909-07-07

stitutional amendment which proposes
to give the government power to inn
pose an income tax of unquestioned
validity. With the corporation tax a
law. the income tax power would be
held in reserve for use only in emer-
gency. Therefore. the question now
is between the corporation tax and an
income tax which includes corpora
tion tax. The corporation tax was
not proposed by Senator Aldrich or
any corporate interest. It was pro-
posed by President Taft when it sp-
peared that without some such COM
promise the Bailey Cummins corpora
tion and individual income tax would
carry. The president proposed the
corporation tax because it was enough
of . concession to the income tax
principle to secure some republican
votes previously committed to the
Bailey Cummins proposition.
Suppose President Taft had allowed
matters to drift instead of interyen-
ing. We would now be confronted by
the practically certain passage of the
Bailey -Cummins amendment in the
senate. and its probable adoption in
the house. Persons who heartily be-
lieve in the straight income tax could
logically prefer such q situation. Per-
sons who distrust the income tax
should certainly look upon the corpora
tion tax as the lesser evil. even if
they cannot learn to like it. This is
particularly true because the Bailey
Cummins amendment contains cor
poration tax clause that must be
equally as Objectionable to corpora
tions as the one proposed by President
Taft. President Taft having inter-
vened in behalf of the corporation tax.
let US suppose it should be defeated
when put to vote as q substitute for
the Bailey Cummins amendment. The
defeat Of the administration measure
would clear the way for the adoption
of the Bailey. Cummins amendment.
Republicans who had left the latter
to support the Taft plan would be
free to 60 back to their old allegiance.
The insurgents and democrats would
be willing to stay in Washington un-
til the opening of the regular session
if they could make sure of passing q
straight income tax law. How would
conservative opponents of the corpora
tion tax like that prospect?
What is the main purpose back of
the income tax movement? Clearly
it is to raise q large amount of reve-
nue.. perhaps 5000. 600. 900 annually.
And what then? Then will follow
logically a proposal to reduce the GUS
toms revenues by the amount of sur
plus raised by the income tax. And
what will become of protection, while
this programme is being carried out ?
If the programme is ever set under
way there will be little thought Of
protection. Democrats and repu bli.
cans who sympathize with them will
be running things. and protection will
be lost in the shuttle.
It is true that the supreme court
may stand in the way of the income
tax programme. It stood in the way
by vote of five to four the last time
the democratic plan for the destruction
of protection was tried. Senator
Bailey and his supporters think the
income tax might be approved by 8
five-to-four vote next time. Loya,
protectionists should be chary Of TAX
ing the chance. whatever it may be.
The corporation tax is offered them al
a means of permanently sidetrackine
the income tax movement and all Il
may mean in the wav Of disruptine
our present revenue system.