Iowa County democrat. [volume] (Mineral Point, Wis.) 1877-1938, 1909-06-17
PRESIDENT TAFT IN SPECIAL
MESSAGE WILL SUGGEST
TWO PER CENT.
ALSO PROPOSE CONSTITUTIONAL
AMENDMENT PERMITTING
INCOME TAX.
EXECUTIVES ACTION RESULT OF
CONFERENCE OF LEADERS
I'M SENATE.

Washington, June 1G.-President
Taft today will send to congress a
message urging the passage of an
amendment to he tariff bill impos-
ing tax Of two per cent. upon the
gndisbibuted net earnings Of cOrpor
atoms, and the adoption of a resOlu-
ton submitting 10 the several states
an amendment to the constitution
giving congress the power to impose
a tax on incomes. This understand
ing was reached at a session Of the
cabinet yes erday 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 hat 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
loss both these commit ees will re
port promptly so that all the ques
tons involved may be disposed of on
Friday, when the pending income tax
amendment will be taken mp for con
sidcratiOu
In view Of the emphatic stand taken
by President Taft against a direct
tan. on incomes, in the face Of The de
cisiou OF the supreme court =, the
United States on that subject, and
his preference for the proposed tax
on net earnings of corporations, a
number OF progressive republicans
have signfied their intention of fol
lowing his recommendations At the
same time no. all progressive repub-
Leans are satisfied with this admin
.strative program, and il is probable
that some of them viii voice a Wig
orous protest Democratic senators,
also, are expected TO indulge in strong
criticisms donunciatory of the tax on
corporations as a substitute for the
direct tax on incomes
Not only is the president favorable
70 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 aC-
count of the fact that he believes it
would bring about a helpful and
healthy degree of publicity relative to
the affairs Of the corporations of the
country. This. he as wen as many of
his advisors, believe would he a re
form which otherwise il would be i'm
possible for them 10 attain. The
benefit 10 corporations. II is argued,
would arise from the fact that it
would in a way, stamp upon them
the approval of the national govern
mont and sentimentally, If not legal
~. supply federal endorsements which,
il is believed. would not increase
their credit with domestic investors.
Dut With owners of foreign capital.
The president is said to be con
WINGED that if the sugges ed 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, it is contended would be help
tul to tn, corporations and satisfying
10 the general public 1t is believed
that TINS publicity would prevent
what is considered to be one of the
evils of the day, i'm that il woufd
eliminate the possibility of concealed
equities, and III the language OF one
ri 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 a tax can be
framed ON he basis of the internal
revenue law. giving the government
full power 10 Investigate the books Of
corporations Tor the purpose of de
terminine their earnings. He also
believes that such q provision could
he drawn 50 as To he held by the SUI
preme CONT to he constitutional. 1t
is believed thai the president will
recommend that the tax should he I'M
'imi. ed as 10 time as this feature is
considered essential 10 the success
OF the proposed law in insuring pub
fcity. which has come TO be cOnsid-
cred as of sufficient Importance TO
dwarf even the revenue producing
Element of the amendment.
Fam Tools en- Free List.
Senator Bacon yesterday introduced
an amendment to the tariff bill plas-
ing agricultural implements and ma
tersal for cotton bagging on the free
1-sr