The wageworker. (Lincoln, Neb.) 1904-????, 1909-06-19

Washington. d. C-Recommending
a two per cent tax on the net income
of corporations and also the adoption
of an amendment to the constitution
providing for the imposition of an in
come tax without an apportionment
among the several states. President
Taft Wednesday sent to Congress a
message embodying his views on the
subject This action followed pro-
racted special meeting of the cabinet
The text of the Presidents message
is as follows:
To the Senate and House of Represen-
tstives:
1t is the constitutional duty of the
President from time to time to recon-
mend to the consideration of congress
such measures as he shall Judge neces-
sary and expedient. In my inaugural
address. Immediately preceding this
present extraordinary session of con-
gress. 1 invited attention to the neces-
sity for a revision of the tariff at
this session and stated the principles
upon which l thought the revision
should be effected. / referred to the
then rapidly increasing deficit and
pointed out the obligation on the part
OF the trainers of the tariff bill to ar
range the duty so as to secure an ade-
Quate income and suggested that if it
was not possible to do sc by import
duties. new kinds of taxation must be
adopted. and among them l recon-
mended a graduated Inheritance tax
as correct in principle and as certain
and easy OF collection.
The house of representatives has
adopted the suggestion and has pro-
vided in the bill it passed for the
collection of such a tax In the SEN
ate. the action of its finance commit
tee and the course of the debate in
dictate that it may not agree with this
provision. and it is now proposed TO
make up the deficit by the imposition
of general income tax in form and
substance of almost exactly the same
character as that which in the case
of Pollock versus Farmers Loan and
Trust Company uS9 U. s. isS1. was
held by the supreme court to be di-
rect tax and therefore not within the
power of the federal government 10
impose unless spportioned among the
several states according to population.
This new proposal. which 1 did not
discuss in my inaugural address or in
any message to the opening of the
present session. makes it appropriate
for me to submit to the congress Ger
tain additional recommendations,
Fawors income Tax.
The decision of the supreme court
in the income tax cases deprives the
national government of q power which
By reason of previous decisions of the
court. it was generally supposed the
government had IL is undoubtedly 3
power the national government ought
to have, IL might be indispensable to
the nations life in great crises, Al
though l have not considered a con
the exercise of certain phases of this
power. a mature consideration has sat
fsfied ME that an amendment is the
only proper course for its establish
nSent to its full extent, l therefors
recommend to the congress that botl
houses. by two-thiris vote. shall
propose an amendment to the eonSti
tuition comforting the power TO lev,
an income tax upon the national gov
eminent without apportionment among
the states in proportion to pop0lS
ton
This course is much 70 be preferrs,
to the one proposed OF re-enacting
law once 50dicislly declared to be I'm
constitutional
For the congress to assume tina
the court will reverse itself Sad Il
enact legislation on such an asSamI
ton viii no, strengthen popular con
fdence in the stability Of judicial cor
ssrsctson Of the constitution, Ii i
much the wiser policy to accept IN
decision and remedy the defect b
amendment in due and regular courSs
ASAin. il is clear that by the enac
naeat OF the proposed law. the cor
greSs viii not be bringing money int
the treasury to meet the present d,
reiency. but by putting on the Stat0t
books law already there and nevs
repealed. will simply be suggesting I
the executive officers of the govern
nssns their possible duty to invoS
litigation II the court should mail
tain its former view, no tax would b
collected at all . II ii should ultimate
N reverse itself, stin no taxes woul
have been collected until after pr
trsesei delay
Thinks Nation Favorable.
II is said the diftical,s and delay /
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