New-York tribune., 1909-07-03
THE PRESIDENTS ATTITUDE.

1t is improbable that serious Importance was
anywhere attached TO the charge made the other
day by Senator Borab that the corporation eX-
else tax now before the Senate was devised and
submitted merely as a means of forestallinS the
imposition of an income tax. Undoubtedly not
few Senators who supporting the corpora
ton tax amendment are supporting it as a
choice of evils. They sympathize with Mr.
Aldrich in his opposition TO any and all forms Of
special taxation and subscribe 10 the view of
the Rhode Island Senator that it is better to
accept a partial tax on income such as the
amendment contemplates than To run the risk
Of seeing a straight income tax incorporated in
the tariff bill.
But Mr. AIdrlch and those who agree with
him are not responsible for the submission Of the
corporation tax. That form Of tax was sug
gested by President Taft and viii owe its adop-
tion entirely to his initiative lie is the force
behind it, and anybody who understands his
character and his political methods will fully
absolve him from any intention of playing off
one form of special taxation against another for
temporary political advantage If he IS now
urging the imposition of a corporation excise
tax il is because he believes that tax 70 possess
distinct and positive merits not because he
wants TO make the enactment of some other
species Of direct tax impossible.
President Taft'S record special taxes is
entlr ly clear ana consistent. lie mas favored
a more liberal use of the power of direct taxa
ton He was originally of the opinion that the
Supreme Court WIuld reverse its decision on the
income tax If another income tax law should be-
submitted to il for Interpretation. Recently he
has become satisfied that il would be a breach
Of that comfy which should rule between the
different departments Of the federal government
for the executive and the legislative departments
to assume that the judicial department would
reverse itself. We believe that conclusion 10 be
sound, and that il will be heartily approved by
the country. Determining, therefore, TO ask
Congress 10 submit a constitutional amendment
To the states relieving the federal government OF
the limitations on its taxing power far as
direct taxes not apportioned among the states
according to population are concerned. Mr.. Taft
has had to fall back on the two other forms Of
direct taxation not obviously I'm conflict with
court decisions-the excise tax on corporation
profits and the inheritance tax He has recon-
mended both Of these to the Republican leaders
in Congress. The House of Representatives pre-
ferred the Inheritance tax to the corporation tax.
The Senate declined to accept the inheritance
tax because nearly all the states now depend
for considerable portion Of their revenues on
taxes on nheritances 1t was entirely natural
and proper, therefore, that when the Senate's
determination TO levy some other direct tax than
the inheritance tax became apparent the Pres-
dent should recall his earlier recommendation
of a corporation dividend tax
Mr.. Taft's policy is always Of fair and
open dealing. He has not departed from that
policy in his efforts To promote the passage of
the amendment before the Senate He believes
in the corporation tax end In itself not
form Of insurance against other legislation
He is not working to relieve the personal embar-
easements of leaders In the Senate but to initiate
well understood policy of enlarged direct taxa
ton. His programme is open TO fair criticism by
those to whom some of its features seem inequ!-
table and oppressive, but it cannot be attacked
as lacking candor and good faith