New-York tribune., 1909-06-10
TAX ON DIVIDENDS
OF CORPORATIONS
v1Y BE KNOU7N rs "T1FT
AMENDMENT"
Finance Committee Practically De
oides to offer Substitute for
Income Tar Plans.
From The tribune Bureau. J

,-as-in-ton June 9.-The presentation by the
-.-.noe Committee Of an amendment to the
.sT riU providing for q tax on dividends OF
,oreri rior1s as a substitute for the income tax
.sndr7ents has been practically determined
on This proposition for raising revenue by
--aciai taxation IS heartily favored by the
PRESIDENT. and viii probably be known as the
Taft amendment
That sucb q substitute would be offered 10y
.4e Republican orginzation if. when the time
,sr,e 70 vote on the income tax amendments.
10 confidential poll made by the leaders failed
- reveal sufficient strength 10 send those
.,rendnenGs 10 the Judiciary Committee was
Set announced in these dispatches TO The
r,r;r,,ne or May 36. Although the leaders were
.,,c,sr- - admit the truth Of the prediction
81 that time. for the reason that they stll
roned 70 obtain sufficient votes to send the in
rome TAX amendmepts To the Judiciary Com
,,itree. and felt that any admission Of their
alternative purpose would be regarded as
sipn Of weakness. they now say they have prac-
tirallv decided TO pursue the course then out
lined
.s WAS told in The Tribune then there are
nam, Fepuhlicans who feel the necessity Of
,,otne Sor an income tax or some substitute
z-hic1 viii serve the same purpose. and when
tie President was advised that the organlza-
lion was stIn three votes short Of the number
NECESSARY 10 refer the income tax amendments
he gave new impetus to the corporation tax
rroposition 10y strongly advising that it he pre-
sented as q substitute.
PRESIDENTS VIEWS EXPLAINED
A. p meeting attended by many of the BE
,,ubiican advocates OF income tax to-day
The Presidents views We're explained and con-
sderably more than the necessary number IN
dicated their willingness TO support the cor
poration tax proposition. especially as II was
advocated by tie President. Senator Borah-
one Of the most ardent advocates Of the income
Tax and Senator Cumn7ins father OF the
amendment which is viewed with the greater
favor. indicated that they were not Yet pre-
rsred to Weld their views, but i Is believed
that even they viii come into line Il tae 'aN
eu corporation dividends is found 10 be posi-
hls Of adoption and the income tax Il mol As
sne Of the leaders said to-day tax ON the
dividends Of corporations would really be a
tax Oh incomes or what IS termed lh i-t5''--'N
--sxlnc incomes at their source
-ta details Of the amendment Ihieh WI"
rrobatlv be submitted TO the Senate remain 10
= ,,-,-l,aa c,,r Tie Presidents suggestion IS
Fc- q tax Of > r,er cent on the dividends oi coy
.,,orations Whether that percentage VIII De
ssor.ea l,- the committee remains t. be deter
mined. and VIII depend largely on the es'-
mates Of the probable revenue which are no"
70 be comuiled with greater accuracy iAal
heretofore. one point IS practically decided
and that is that the amendment viii provide
for the irnrositi5n Of such a tax only for spe-
cifc period TWO or possibly three years.
ARGUMENTS FOR THE PLAN
- has been indicated In these dispatches. some
Of the Senate leaders would prefer to postpone
the enactment Of an special taxes unul next
winter. when. it is believed, it viii be possible
u determine the precise revenue producing
power Of the new tariff bin Others. however
are heartily in favor of the adoption OF the
Presidents plan. They submit that tax Oh
per cent on the dividends Of corporations
would be insufficient 70 amount 10 hardSil'P
70 any stockhol5er. that such a tax would prove
extremely popular with the great majority "f
The voters and that it would enable the Repuo-
lcanz 70 meet the charge that the-tarih pene-
fte3 the corporations more than the consumers
with the demoustrabla assertion that by means
Of this tav the corporations were themselves
compelled 70 contribute their share 10 the eN-
penseS of the federal government bhey ans"
say that b- adding to the tariff bill a PROPOSE
tion advanced by the President the popularity
Of the measure would be- increased. and, more
over # proposition so heartily favored 10y Ihe
Chief Executive were incorporated in the b'H 1t
would insure for il a heariiness u support by
him and possibly q Ieniency in dealing with the
schedules which would at least faclt''te IH7
work of the Joint committee On conference
Finally. it SIS urged that the Republican party
would be in materially better tactical position
il should go into the campaign Of 1910 with
-Ts.-Ff
accunalati-lg d surplus in the Treasury instead
q with a measure which barely mss Is or pos
sibly falls just short Of meeting the federal eX-
penses
AGAINST INHERITANCE TAN
The opposition Of The senate TO the inheTi-
tanoe tax Inserted in the bill by the House Is
farreaching and not - be overcome i Is
based. of course. on the belief that IN many
states such tax would amount to double taxa
ton. ON the other hand. TO enact IN income
tax however small. would. as one of the iead'Fs
Wittiiy remarked to-day. be only 10 enact d
lawsuit In fact the income tax contained III
The Wilson bin sui stands on the federal stat
ute books although the decision Of the supreme
Court that 81 was unconstitutional has prevented
any attempt 20 collect it since that opinion was
rendered
Western senator n stanch supporter of the
Organization. declared to-day that there We're
a number Of Republicans who stood committed
To tho income tax proposition, but would wei
come al opportunity 10 come into the organ
izat0a They want US provide creased
plank for them 20 sIlds in on" he said. Now.
10 my way q think. :, there Is not specii
Interest in the dividend tax plank, and Brothsr
Aldrich IS amply capable Of providing the grease.
MOREOVER. it y.u be wer for the organization to
remember that some Of Is have fit bed and
died Ia srsna b,- II and by giving Us "a potent