The Cairo bulletin. (Cairo, Ill.) 1???-1928, 1909-04-22
SENATOR CUMMINS OF IOWA
ESENTED HIS INCOME
TAX PROVISION.
STATES HIS POSITION
With Regard to Principle of Protec-
tion-Generai Discussion on In
come Tax as II Affects
Corporations.

progres was made today by the sen
ate in the consideration of the tarif
bill. No senator being prepared tC
speak on the hill as a whole the
reading of the measure by paragraph.
was begun. Various items in the
chemical schedule were passed oyel
for future consideration. The read
ing was frequently interrupted by 6
discussion of amendments and only
1Sfpages of the bill were disposed CT
Cummins presented his income tax
provision and discussed it at ten2th
In presenting the resolution Cummins
said that If any tax were levied Cn
corporations it would be extreme y
difficult to classify corporation tc
meet the requirements of the legisla
tion. He declared that a graduated
Income tax on corporation would re
suit in the great corporations paying
The highest rate although their stock
might be largely held by men OF
small means. In that way the result
might be to place the highest tax on
men of small incomes.
Such result" said Cummins,
would not only be unjust, but it
would destroy the essential principles
that nlerlie The income duty"
Cummins said he recognized that
his amendment challenged the opin-
ion of the supreme court of the United
States on the law of 1894 in respect
to the constitutional requirement. re-
garding direct taxation, and he be-
lieved it would be impossible to frame
an income tax law that would not
antagonize that opinion.
Opinion Disastrous.
Of" he added. That opinion is to
stand in It's full scope, then the
United States must abandon for all
time or until Legislation Is amended
the exercise of power aud authority
which had been re >ognized for 100
years before the opinion was an
nounced.
That decision" he said, restricts
the federal authorities, and we should
not permit time 70 pass without
again asking an examination of this
vital power of the government"
He declared that such restrictions
of power of taxation of the govern.
ment would prove disastrous in time
of war
He denied that the proposition to
tax incomes was a Democratic doe
trine but he was willing to accept
the wholesome, sound AMI just prin-
ciple, no matter what It's origin may
be" Calling attention to Cummins'
failure to tax the incomes of corpora
tions In his proposed amendment,
RaynOr declared: we are after the
corporations principally and think
you should be. too"
After Justice.
II am after justice, and | am not
nfter the corporations, retorted
Cummins. Cummins contended that
every tax is levied in sense inquisi.
torial, hut that the income tax was
nc more so than any other.
Smith. of Michigan, said the pro
posed amendment would tax the in
comes of residents abroad unless
tax was placed upon corporations.
Raynor took the Same view.
Suppose" he said Carnegie, with
an income of $500. 900 a year, de-.
rived from the steel corporation,
should be living abroad; there would
re no way to collect the tax if he
bad no other property in the United
States to he attached"
Il propose" replied Cummins, that
the corporation shall pay that tax
That is the purpose of my amend
ment."
Cummins. referring 10 newspaper
criticism. said he had been repre-
sented as making an insidious attack
upon the principle of protection by
the raising of revenue from an in
come tax.
States His Position.
Il desire, he Said to disclaim any
such intention. There Is no senator
claiming allegiance to the Republi
can party whose feaIty to protection
is greater than my own. under
stand that | came into the senate
with some suspicion respecting my
views upon the policy of protectaion.
! admit that if | am to be measured
by the tests imposed by the Ameri-
can Protective League. then | will
be found TO be uncound. But if am
measured by the Republican platform
aud by the declarations of Mckinley.
Harrison and Blaine. then | am as
sound as any senator who marches
under the political banner to which
| yield my loyalty"
Cummins contended that the PAYNE
bill would not insure sufficient rere-