The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1909-05-29
VOTE ON INCOME TAX.


concludcd To come 10 Vote ON the
proposition of imposing an income tax.
! the vote to be taken on June 10th. 1t
| is TO be hoped that when the vote is
reached, 1T may be in favor Of that tax,
because an income tax is certainly the
most equitable Of any, and ought to he
The easiest tax of any tax, except the
customs duties. TO collect,
When the income tax was made a
part OF the revenue system Of the
United states, on the enactment of the
Wilson German bill in 1894, the u. S.
tutlonal, in that it imposed direct tax.
alton In a form different from the re-
quirement Of the constitution in the im-
position of direct taxes.
But, first of all, President Taft, who
is first.class lawyer himself. thinks
that an income-tax law could be framed
to meet the objections Of the court, and, ,
second, the court was as nearly equally
divided AS possible on the bill referred
to, four of the nine judges agreeing that
the tax was constitutional, while five
held that it was not and it is quite pos
sible that the changes that have oc-
Cured in the personnel of the court
might change the Judgment.
On the firss proposition, President
Taft has no doubt made an expert and
professional study Of the decision and
of the enactment which was pronounced
invalid. His opinion, therefore, that
law could be drafted that would stand
the scrutiny of the court, even as then
constituted, has great weight and
doubtless he will he invited by Con.
of the income tax, To aid in framing the
provisions of law which would enact
such taxation If so, there will be little
danger of the present court invalidating
the enactment
In the next place. there have been
good many changes in the personnel of
the court since that time and it is quite
likely that the court AS now constituted,
would uphold the principle Of the in
come tax, without much reference to the
former ruling Of the court; for 1T is An
undoubted fact that the clause Ill the
Constitution relied upon by the majority
Of the court lnvalidating the former in
come.tax law. was framed to protect
the Southern Shareholders against Fed
eral taxation that might be oncrous TO
them upon thoir slaves.
We believe that the income tax prin-
ciple is destined. to become a permanent
feature of our National taxation, and
that the principle, being once fairly and
formally upheld by the United States
Supreme Court, will never more be
questioned; the course Of ruling on this
having direct precedent in the legal
tender cases.
There is another form OF taxation
available to the National Government
that has never yet been touched but
which could be made to yield very large
revenues. We refer to the corporation
tax. If Congress would pass. law pro-
viding for the National incorporation
of corporations and companies oolng an
interstate business, providing therein
of such corporations by National law
and allowing for the corporate taxation
on receipts or valuation of the stock
Of such National corporations, it would
be found a good revenue measure. 1t
would serve h far moro Immediate pur-
pose, also, than that, because it would
afford the foundation for the enact.
mcnt by Congress of various statutes
which have been found unconstitutional
by the United States Supreme Court,
by reason of the failure of such Ma
tIonal corporation. An instance III point
is the employers liability act, which
the United States Supreme Court in
validated some two years ago, II was
very clear from the tone of that de
cision that If the case at bar had
arisen from the fault of a company that
had been incorporated by Congress, then
the question of whether the injured en-
ployee was engaged in State or inter
state transportation at the time he was
injured, would not have arisen at ALL
We believe that this national incorpora-
tlon of companies, with the taxation
which would probably follow. will be
come permanent feature in our Ma
tional commercial affairs before many
years.
In the meantime, the immediate
question is the income tax, and we GER
tainly hope that when the Senate comes
to vote upon it on the day named. the
vote Will be for that excellent form of
taxation, the tax on incomes,