Los Angeles herald. [microfilm reel] (Los Angeles [Calif.]) 1900-1911, 1909-06-15
TAFT TO FIGHT
INCOME TARIFF
OPPONENTS LINE UP TO At
TACK MEASURE
FAVOR TAX ON NET EARNINGS
OF CORPORATIONS
Senators, Backed by President, Pre-
pared for Final Battle Next FRI
day, When Issue Comes UP
for Vote
Try Associated Press.)


WASHINGTON, June 14.-When the
income tax question comes before the
senate for a vote next Friday the plan
of it's opponents, backed by the intiu-
ence of President Taft, to circumvent
the adoption of such measure VIII
be fully outlined.
Already the opponents express con-
fidence in their ability to substitute
for the income tax amendment a pro-
vision for a tax on the net earnings Oh
corporations available for dividend
purposes, coupled with a provision Tor
the submission to the legislatures or
the several states of constitutional
amendment giving congress power 10
lay direct taxes on incomes.
For several days it has been reallzeo
by opponents of the income tax ques-
ton that the only way they could make
certain the defeat of the proposition
would be to offer something in its
stead that would be acceptable to the
country
1t became known that President
Taft disagreed with the supporters OF
a tax on incomes and would lend the
administrations influence to bring
about their defeat
Several progressive Republicans, no
tably Messrs. Brown, Jones and
Bourne. have been called to the White
House and President Taft has dis
cussed with them the question Of sub
mitting a constitutional amendment to
the states. Senator Aldrich was at
the White House and was the guest OF
the president at luncheon.
Discuss Proposition
They discussed this proposition at
great length, and Mr.. Aldrich agreed
with the president that the corpora
ton tax plan would be wise.
II Is understood the president be-
lieves the income tax question should
not again be submitted to the supreme
court, but at the same time he takes
the position, it is said, that congress
should be given the power 10 levy
taxes on incomes.
It is his theory, according to MEM
bers of the senate who have talked
with him, that. the right of congress to
levy such tax should be determined
as soon as possible, in order that this
method of raising revenues should be
accessible in time of war or other
emergency.
Harmoilizing with the action of the
president, the provision for tax on
I1ndistributed net earnings of corpor-
atoms, if adopted, probably would pc
limited to a period of two years. 1t
is argued that the law, could be ex-
tended by act of congress, If neces-
sary.
Every effort will be made by Sen
ators Borah, Cummins and Bailey and
their followers among progressive Re-
publicans and Democrats to get d.
rect vote in the senate next Friday
on the income tax amendment.
A conference on that subject was
attended by Messrs. Cummins, Borah,
LaFollette, Bailey and CLAY. They
sought to meet the changing senti-
ment in the senate by deciding to
amend the Bailey ummins amend
ment to provide for tax IN the I'M
distributed earnings of corporations,
and excluding from taxation DIVIDENDS
of corporations which are paid to In
diyiduals. This is simply another form
Of providing against double taxation
in an income tax law.