The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1909-06-30

publican proposition and supported by
the president of the United states, is not
! the least controlling"
A Natural Question.
Mr.. Bailey said he had a curiosity to
know whether when they had set their
heads at work 10 defeat the income tax
amendment, the president made the
suggestion or did the senator from
/ Rhode Island submit it TO the presi-
dent"
Il suppose the senator scarcely eX-
poets an answer to that question" re-
| sponded Mr.. Aldrich. who said that his
conversation with the president was
| personal one. Mr. Aldrich refused to
reply to a question by Mr.. Gore as to
whether the president. as we'll as Mr..
Aldrich, was urging this corporation
/ tax as a subterfuge for an income tax"
while you are talking about all these
! things" pleaded Mr., Tillman in behalf
of his tea proposition, my poor little
tea baby has been laid aside and is cry
ing for papa"
MIR. clay's Opinion.
Mr.. Clay then resumed. He said he
believed the Rhode Island senator ia
vored the corporation tax solely to de-
feat the income tax.
Not solely" replied Mr.. Aldrich.
''The imposition of an income tax now
would be an assault OF rebuke rather,
to the supreme court of the United
States. The income tax case was de-
cided after mature deiiberation. and now
to again submit the question without
change is simply flying in the face of
that decision, to administer a Tebuke to
the court
The debate closed with statements by
Senators Bailey and McLaurin that the
supreme court might change its position
if the case were again presented. The
income tax was then temporarily laid
aside in obedience to Mr. Tillman's plea,
and was not returned to again until aft
er the disposal Of the tea amendment.
Senator cummins' Speech.
The issue respecting an income tax had
suddenly changed, declared Senator Cum
minis.
Until within a few days" he said. ''the
issue was whether any income tax should
be authorized by congress. 1t now seems
to be what kind of an income tax shall
be adopted. The amendments offered by
the senator from Texas and myself pro-
vide for a general income tax to be paid
Dy All persons. partnerships and cor
porauons with net annual earnings in ex-
cess Of $1,000 so adjusted that the tax
he enjoyed such an income even though
a part Of 1t is derived from a corpora
ton.
1.-THE amendment recommended by the
president provides special income tax
laid only upon corporation and measured
by the net earnings. The difference be-
tween the two plans is fundamental. and
Involves the most vital principle, in the
authority of any government to tax its
citizens"
Not Accepted as Command.
Mr. Cummins said he did not consider
any presidential recommendation as a
command nor did he believe the presi-
dent would want any senator to accept
1t unless 1t is in harmony with his own
judgment, He felt that he could not agree
with the presidents conclusions.
81 believe" said Mr. Cummins, chat
the special income tax not only contra
venes the most sacred principles of our
governmental compact. not only over
rides the deepest convictions that civil
lied man holds with respect to taxation
but it collides with the decision of the
supreme court at the same point and with
the same force as does the general in
come tax provision which we propose"
Mr. Cumnins sug 5es ed that the ex-
istence of the prOtertiv tariff system
would make necessary some other means
Of raising the revenue han that now fol-
lowed The people, ne said. would not
consent TO the excessive dulles necessary
to obtain all the revenue needed from inn
ports.
Objections Trivial.
THE objections urged against the in
come tax" he said. when weighed with
the objections that properly can be
brought against any other form of taxa
ton open to congress viii be found to be
trivial"
Mr.. Cummings concluded that if the
government depends upon its present re-
sources il will have a large deficit in 1911.
AS a practical matter. he regarded it as
mo- arr~ rra md ZEE
setting it by a new form of taxation i'm
posed on the people best able to bear it,
The amendment proposed by the finance
committee he said was subject to all the
objections from a legal point of view that
were urged against the income tax pro-
posed by him. Reviewing these objec-
tons, he said;
Taft Plan Criticised.
Tt is a tax upon incomes. and the
fact that it brings within its provisions
the incomes of corporations only does
not and cannot change its character.
PIT does not change the nature of a
tax 10 bestOw upon it a different name
and If a mere name was important or
influential the tax proposed BY our
amendment could be called an excise tax
just as easily and just as correctly as
can that term be applied to the tax pro-
posed by the committee
''3-The stroke of a pen will make the
tax authorized by our amendment a tax
upon the privilege to receive and enjoy
a certain income; and It will be as well /
described as the tax which the committee
insists upon. when It is said that IL is |
laid upon the incomes of corporations
with respect to the carrying on of their 1
business
Comment by Aldrich.
During Mr.. Cummins comment on the i
receipts and expenditures OF the govern !
ment, Mr. Aldrich declared that with ad- 1
ditional revenue to be provided BY the 4
corporation tax, he would be greatly sur
pTised II there is any deficit next year.
His estimates Of expenditures for the 1
present year when the tariff bill was re- 1
ported to the senate, he said, We're about /
s.. 600 too high, and he had he said
con era Inflated hinself that ha had est