New-York tribune., 1909-07-02
IR. TAFT SQUARELY
REHlND EARNINGS TAX
r,roRS IT NOT rs MERE
EYPEDIENT.
First Step in Carefully DcTised
sustcr1 Of Federal Control
of CORPORATIONS
Of Corporations 9
----.- --s ---are Bureau

-T7ef-rC-0ll JUN
.-s1,. ba-ir5 TIE FAX On the net earnings OF
t211. He advocates il not merely as
P-.s;s.,. o' with which - si5ar~aek the IN
- r,r+ - highly desirable form ~ tax
- ba,aD=a If -he 7rbItCir. Il the 1@f'rS II
.-..3o-s 7-r:--- it --s-.~.s and as '-7 1' 81
.s-er..ll- -e,tsoi system # .cderal
Intro, o. corporations. r-e "eHr step IN Fs.7a
all - federal s-re-, sion of al issues 7t '-7S
,,-- ,,r-.-- ra viii r--a~-r,51d IN CON-
.ss in his 4-z- annual message There VIII
:. ~ s,,Hs-i-..-t--..~ conferences 0. The la7erl-
.s.oe tax for the taa on o--ro-at-ons 7-'h TIE
--..t5.-..s assent a-d --a --.=f Executive
soes not believe am So, substitution IS
ta--plate5.
Tre Fe--1-l-z- --7---o=-s - '.- t-07a.- '..--
--i,rea v.t, re exception Of senate A.i'-'---
Who * o.r n r-e .-r- declare that '.'I -'"
- f-r.rrt7r os substituting car r-e corporation
r,r the inheritance -zs - -rs House 1''. and
=. uo,e- leaders trr--E.nE tre Speaker. r.1-
silently r-s6.-r --a, tie corporation r1s "-.. lie
s-scrs5 IS Z -sr. n --= -l-r- bill
-lese tsc-5 together r.-r much NJ -'-a history
r. the corporation tax proposition most -
which has zrrez-sl IN raese dispatches ware
brought 7ur 81 -fe Waite House to-day. where
The President =-zeE freely with several friends
or rbe suH-4-- which had come up 4s result =
ne PREDICTIONS ard t-rtr-ar.o-s III various quar-
te-s taat rhe senate leaders r-~pa='I % uze the
CORPORATION TAX - s-la-r8 x rre income TAX and
thar repIa-e = u5r- -re inheritance TAX IN con-
ference and os Se-z-o- t.d---hs statement on
The fo-- = -h- senate that he would vote f-r
the corporation TAX as q means r0 defeat the
trcorae tax and thai a. the nd ~ f"a years
The corporation tax should "na reduced ro nom
rraI amount ny repealed TIE existence NJ a-v
s-a-srerr ~ III -A'Er.-hz dislike ~ fha g0r-
po-arlon Tax NJ - his f-s-E-ezs IN SAVING So. is
matter = great surprise 70 --@ President n
view II ire means br which --- senate leader
cane 70 espo-s- this tax
PREFERS Circulated INCOME TAX
The President has also made clear his -Eav-=
regarding all r-e forms ~ special taxation E'h--7
hsve 6s=n suggested ia. connection 0.rh the
current deeete-r- = rr@ federal revenues lI~.
Taft prefers above All other forms graduated
income tax although 01 mature consideration
he believes i Mould H- improper 20 re-aracr an
.rcone tax 50 similar IN rr=- already pro-
-ou-ce5 Unconstitutional rv the supreme Court
as % compel that tribunal 70 reverse Itself = y
approved such 2 tax Moreover lA believes
ttst 10 1e sgL---o-s z- income tax must ha
g-sdgzted md should begin With every income
vh.-l amounts 30 sl=- ta- vzn- of q better
tsr-n. r. des -E-a-es as 2 FAIR living wage This
snou-' h IS disposed - rl- - 5000 -ea-
H believes thar every man should C----5 -.-e
through d.re-t TAX "a fair proportion - his
income - The maintenance = thu government
ret oci. <ar '.e slA- o< rae revenue such . tx
would weld rut because such contribution
p-cuio bring home 20 every man p realization
cf his re-pcaslhll-- q and for -he E3ye-uuer,
Cf T- ~ L--
ttat a. income tax determined H- IN z-.rlm@rl-
ca ratio r0gE be fsf~ TAX E- IS convinced
that 2 the man 7-ao ENJOYS IN income Of $1,000
Z -fz- contributes rr- cent Of that amount
10 III su7Do-t - rze government. the nsau who
e1jr-E On income - g. 600 p -rar =houls con-
1anuts higher percentage. say. per cent. and
Is Ea=n whose Income reaches t0to the tens
q thousands should contribute rn-- bly, = Ter
cen or more. ana 60 on
: stamp Tax tho President regards as wholly
rfcIs7 revenue measure for ~. emergency but
eS lacking n considerable dr-re- that tendency
. correct evils cs distribution which would be
1ttc'npl,shc1 b.. either z GRADUATED income tax
oE graduated inheritance tx
f-aa' 'iy, r regards : corporation ts1 Il highly
a@S-E2ois from every point of view. primarily
because u T-i insure degree of federal m
SPset!on and pIr-'c kno9lcdE@ of the transec-
ions Of a. corporations. thus hitting IN With
rs general economic plans in 81 far as they
'+a'e . Corporations. and. secordarilv. because
y VII yield ample revenue to obvi4to anv de-
----s--oy Nnreover. he believes that. g n the
Use q t5s income tax of Great Britain the rate
nay oe increased or decreased IS the needs Of
~ae government NAV. demand without interfering
Ni'a ne publicity feature \ clear understand
As n The Presidents economic creed will make
Easy OF
: 'ne corporation tax n his relations With Cor
g'ess and also ms var.ouz public l,rrersncez and
RECOMMENDATIONS n Congress REGARDING
5se several methods of taxation
ne 1lstc-v e the developn7ert of the cor
P"at-on -zZ n connection With the tariff bill
-'eo On The highest possible authority Is a.
10 sooner had the President secured
:, - george " Wickersham his Acceptance Of
'!lee q Attorney General last winter than
ssAeo NJ N-Ckersharn 10 prepare \ measure
H-Y'-o'hg for tax on the dividends Of cor
's-ohs Within few DAYS after his in
eesoratlon he submitted this rough draft to
N--''t'an FaEre Of the Ways and Means Com
So then considering the tarr bin. The
PUBLIC a7-ourceraent Of the fact that the
eS.'eht had caused this measure 70 be IRE
8h1 vas seriously considering Il vas
80 N The Tribune Of March g. In : Wash
vas stated. '''7 u
%. gFess leaders who have consulted the
'-'eht have been informed that If the Senate
Gus ne inherlt4nce tax provision they NAV
,-,|@nseives .-i='nseives confronted with an urgent rec
r-,--,I--oH that some form Of income tax be
.syioea for. presumably that On corporstto,
dividends p0i q '''a
PRESIDENT MADE NO PROTEST.
ne House adopted the GRADUATED ,,bert,ar..
~. 1-o ne President made no protest u.
however. seriously considering gil tI,, tim,