Los Angeles herald., 1909-06-17

VIZ ASHINGTON, June 16-Recom-
w mending a per cent tax on
the net income of corporations
and the adoption of an amendment TO
the constitution providing an income
tax without an apportionment among
the several states, President Taft to-
day sent to congress a message en-
bodying his views on the subject. Ine
president speaks of the apparent in
ability Of congress to agree to an m
heritance tax, and as regards an IN
come tax he refers to the decision OF
the supreme court in the case Of Pol
lock against the Farmers Loan q
Trust company in which ne court held
the tax to be unconstitutional unless
apportioned according to population
ut is,'' says the president, "un-
doubtedly a power which the govern
ment ought to have. 1t might be in
dispensable to the nations life in great
crises"
The amendment suggested provides
for the imposition on all corporations
and joint stock companies for proht'
except national banks (otherWlse
taxed), savings banks and building and
loan associations of an excise tax OF
2 per cent on the net income OF SAID
corporation.
The president points out that an
other merit to the tax on corporations
is the federal supervision which VIII
give to the government, the stockhold-
ers and the public knowledge OF the
real business transacted. The message
was brought into the senate Whlle
Senator Burton was speaking. SEN
ator Root, being in the chair, ordered
the reading of the document as soon
as the Ohio senator ceased speaking.
All Listen AttentiveIy
oc11rp
was made known both Republicans and
Democrats remained in their seats and
all listened attentively. Senator Gore
moved to refer it to the committee on
finance with instructions to report by
next Friday a resolution for an income
tax in accordance with the presidents
recommendation. A motion by SEN
ator Aldrich to lay Mr.. Cores motion
on the table was carried, 81 to 70, a
strictly party vote.
Mr.. Root, in the chair, had already
made the customary reference OF the
document to the committee on finance
before Mr. Gore made his motion.
Discussing, Mr. Bailey said he would
not vote for the amendment as offered
and that he would insist on gradu-
ated income tax.
Mr.. Hepburn declared himself OPP
posed to any proposition for an income
President Taft is deeply gratifed
over the situation and believes the
prospects for real revision of the
tariff downward are brighter TO-DAY
than they ever have been.
President Tafts message follows;
ITO the senate and house of repre-
sentatives: 1t is the constitutional
duty of the president from time to
time to present to the consideration OF
congress such measures as he shall
Judge necessary and eXpedient.
I'm my inaugural address, immedi-
ately preceding this present eXtraor-
binary session of congress, l invited
attention to the necessity for revis-
ion of the tariff at this session and
stated the principles upon which
thought the revision should be ef-
fected.
Wants Adequate Income
81 referred to the then rapidly in
creasing deficit and pointed out tho
obligation on the part of reformers of
the tariff bill to arrange duties so as TO
secure an adequate income, and sug-
gested if it was not possible to do so
by import duties new kinds of taxation
must be adopted, and among them l
recommend a graduated Inheritance
tax as correct in principles as certain
and easy of collection.
"The house of representatives has
adopted the suggestion ana mas pro-
vided in the bill it passed for the coll
lection of such tax.
"In the senate the action of its
finance committee and the course of
the debate indicate that 1t may not
agree to this provision, and it is now
proposed to make up the deficit by
the imposition OF a general income tax
in form and substance of almost ex-
actIy the same character as that which
In the case of Pollock vs.. Farmers
Loan and Trust company d57 U. s.,
429) was held by the supreme court to
be a direct tax and tariff not within
the power of the federal government
to impose unless apportioned among
the several states according to popula-
tion.
'eThis new proposal, which did not
discuss in my inaugural address or my
message to the opening of the present
session, makes it appropriate for me
to submit to congress certain addi-
tional recommendations.
"The decision of the supreme court
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