Cameron County press. [volume] (Emporium, Cameron County, Pa.) 1866-1922, 1909-06-17
WASHINGTON LETTER.
From our Regular Correspondent


The Finance Committee has practi-
| cally determined upon the prosecute
ton of an amendment to the tariff bill
providing for a tax on dividends of
corporations, as substitute for the
income tax amendments. President
Taft is heartily in favor of this form of
special tax and it will be known, prob
ably, as the "Taft amendment There
are man republicans who feel it neces-
sary to vote for an income tax, or some
substitute for the same purpose, and
when the President learned that the
organization was still short few votes
necessary to refer the income tax
amendments to the Committee on Judi
ciary, he gave new impetus to the cor
poration tax proposition and advised
its prosecution as a substitute. The de
tails of the proposed amendment are
yet to be worked out. A tax of two
per cent. on the dividens Of corpora
tions is the suggestion of the President,
but whether that percentage will be
adopted by the committee remains to
be determined and will depend large
ly, no donbt, on the estimates of the
probable revenue, which are now to be
complied with greater accuracy than
heretofore. One thing seems to be
settled, and that is that such an amend
ment will provide for the imposition
Of this special tax for specified per-
iod, two or perhaps three years. Some
Senators are heartily in favor of the
Presidents plan, while others would
prefer to postpone the enactment of
special taxes until next year, on the
ground that it will then be possible to
determine the precise revenue produc-
ing power Of the new tariff law.
Those who favor it submit that a tax
of two per cent. on the dividends of
corporations would be insufficient to
amount to hardship to any stock
holders; that such tax would prove
immensely popular with the great
majority of the voters, ETC., and they
believe, too, that were a proposition SO
favored by the Chief Executive to be
incorporated in the bill it would in
sure for it heartiness of support by
him and possibly lenency in dealing
with the schedules which would iacili-
tate the work of the joint committee
on conference And last, but not
least, the claim is put forth by those
who favor such an amendment that
the Republican party would be in
better tactical position could it go into
the campaign of 1910 with a record of
having enacted legislation which is ac-
cumulating a surplus in the Treasury
instead of enacting a measure which
barely meets, or perhaps falls just
short of meeting, the federal expenses.
The announcement of the probable
substitution of this amendment for the
income tax amendments of Senators
Bailey and Cummins brought these
two Senators together Immediately in
a determination to bury their differ
ances and unite on common measure
includes the fundamental provisions of
the Cummins amendment and the non
essentials of the Bailey amendment,
and they now insist that they purpose
to press its adoption with all its power.
This is interpreted to mean a lineup
of President Taft and Senator Aldrich,
backed by the Republican organization
on one side, and Senators Cummins
and Bailey, backed by the ''insurgent"
Republicans and the Democrats on the
other side. The income tax amend
ment agreed upon by Senators Cum
minis and Bailey provides for a tax of
two per cent. on all incomes exceed
ing $1,000 year, with provision for
the reimbursement of those stock
holders in corporations whose total in
comes do not exceed S5, 1000.