Arizona republican., 1909-09-22
He Defends The Corporation
Tax Of Tariff Bill
II BEATS INCOME TAX.
He Made That His Subject
at Denver Instead of TAX
ing Up the Question of
the Conservation of Natu-
raj Resources

Denver, Colo, sept. 2l.-Maklng his
way still further to the west. Presi-
dent Taft arrived at Denver this aft
ernoon and tonight in the Denver
Auditorium, where a year ago Mr..
Bryan was nominated as his opponent
in the presidential race, faced
crowd of thousands that, in its noisy
welcome and enthusiasm, recalled
some scenes of convention week.
Mr.. Taft, switching from his pur-
pose to discuss the conservation of
natural resources, elected to take up
the corporation tax, passed as a part
of the Payne tariff law, and to defend
it as against the proposition to inn
pose a direct income TAX. The presi-
dent strongly urged that all states
should adopt the proposed amendment
to the constitution to make the in
come tax possible in time of need.
Mr.. Taft was joined here today by
Secretary of the Interior Ballinger,
whose conduct of the interior de-
partment he recently upheld before
making a final exposition of the aims
and objects of this administration as
to the conservation of natural re-
sources. Mr.. Taft probably will not
take up the subject now until he has
reached Salt Lake City, where he
will spend Friday and Saturday, or
he may wait until he arrives at
Spokane, Wash, where. at the irriga-
ton congress, the Ballinger-Pinchot
controversy really had it's first public
airing.
The president tonight declared that
the corporation tax was in itself the
best form of income tax that could be
levied, and he pointed out that it
contained many of the best features
of the income tax law of England.
In urging that states should vote for
the amendment to the constitution
permitting a levy of a direct income
tax, the president declared it would
be possible to amend the corporation
tax TO include within ITS scope every
desired feature of the income tax,
except the levy derived upon incomes
derived from actual salary and pro-
fessional services. The president said
he opposed a direct income tax. He
believed it to be a prime fault of
the federal constitution that no pro-
vision had been made for a direct
levy to meet wartime or other ex-
traordinary expenses. Mr.. Taft said
that the supreme court decision de-
claring unconstitutional the income
tax passed by a democratic congress
some years ago had prevented the
leaders in congress during the session
recently closed from including in the
corporation tax measure a provision
for a levy upon bonds and bond
holders. To tax bonds would result
in the reduction of the rate of in
terest and hence would be a direct |
tax upon individual honders of bonds. |
The president bases his argument |
in favor of the corporation tax, as
compared with the direct income tax. |
almost entirely upon the results of
the income tax in England He |
pointed out that the tax there is not |
direct levy, such as was recently |
defeated in the senate only through a |
compromise but that it laid the tax |
upon the income before it came into |
the hands of the Individual, being |
levied first on the declared dividends |
of corporations; secondly, on rents in
the hands of the tenants. and. thirdly, |
on the individual directly.
1t was found in England that a di-
rect income tax at 10 per cent would |
not produce as much revenue as the |
present method of taxation at per
cent This, he declared, illustrated
the premium a tax places upon per-
jury and concealment
The president received a most en-
thusiastic welcome TO Denver. Signs
We're hung at intervals all over the
city reading: Welcome to Denver.
the summer capital" While here the
president is the house guest of United
states Senator Hughes, a democrat.
He held a public reception of two
hours this afternoon at the state
capital
At the auditorium tonight Mr.. Taft
touched briefly on the tariff, saying
that while revision had seemed es-
sential there was also a deficit in the
treasury TO be met. This partly will
be met by a cut of $4,000, 900 TO $50
100000 in the appropriations to be
made by congress and partly BY the
income from the new corporation tax
law. "A part of the republicans" said
he. and all the democrats of the SEN
ate united in pressing for the con-
sideration of general income tax on
individuals throughout the United
States. The law was as near as il