The San Francisco call., 1909-03-30
Does Not Desire to Dictate, But
Is Unwilling to Add TO
Cost of Living
FavOrs Increasing Revenue by
Tax on InheritanCes
or on Stamps
By Ira q. Bennett
Especial Dispatch 10 The CALI

in revising the tariff. At the same
time he is willing to let members of
both houses who visit him understand
what his own ideas are
There has been no disposition on
The part Of the president TO swing any
kind Of stick, and reports that inti-
mate that members OF congress have
been called 20 the White House to re-
ceive the dictum Of the executive are
not warranted by the facts. In several
cases the president has suffered by the
representation Of his views.
Opposes Tea and Coffee Tax
The president believes in the general
principles Of the Payne bin and is Of
The opinion that il provides for reduc
tons in the schedules that comprise
The necessities, with one or two i'm
portsnt exceptions. In view of the in
creased cost OF living the president is
unwilling that through federal taxation
on the things consumed by the masses
daily this cost OF living shall be still
further Increased.
Therefore he is opposed TO the pro-
posed tax on tea and the countervailing
duty proposed on coffee. He wants the
tea tax stricken from the bill outright
and the coffee prOviso eliminated. as he
has made il plain 10 those with whom
he has talked that while coffee may be
on the free list. the countervailing
clause VIII impose a duty practically
amounting TO 5 cents pound.
FavOrs Reductions
While the utterances of the president
nave been more guarded with regard to
lumber. hides, shoes and oil. the i'm
preston is gathered by those who have
talked with him that he favors material
reductions on these articles. and that he
opposes any increase in the schedule
covering gloves and stockings.
The executive understands that ma
terial decreases in the rates of duty on
articles largely imported may mean a
loss In revenue unless the imports be
come greater, and when his ideas have
been sought he has suggested an alter
native proposition To meet this loss
he would have first Of all an inheri-
tance tax because Of the ease in collect
ing it. and the certainty in fixing the
amount OF tax TO be collected On the
theory that taxes should be imposed
along lines that create the least fric-
tion. the inheritance tax, from the pres
idents point Of view, is ideal and the
only drawback to this plan is the fact
that in number OF the states this
system is operative. and its opponents
argue that TO impose it by federal
enactment would double the burden.
Proposes Alternative
II the inheritance tax is not accepted
by congress then the president viii ask
for a modified income tax, although
such measure may not be advanced
until after the revised tariff law is put
into effect and some estimate can be
made Of its revenue raising capacity.
This measure probably viii be brought
out during the next session. More
properly speaking this proposition is
an excise tax measured by percentages
on income.
This tax on dividends would be ap-
plicable TO all stocks but mutual life
insurance companies. building associa-
lions and national bank stocks. Ac-
cording 90 treasury statistics such a
tax would yield about s15.oOo.o0o, which
would offset the loss Of the tea and
the coffee tax.
Moderate Stamp Tax
II the reduction in the duties which
he believes should be made endangers
the revenue raising capacity OF the
proposed law the president is OF the
opinion that a moderate stamp tax
would not impose an unfair burden
rpon the people. Statistics are now
helng compiled to show what amount
This tax upon certain specified articles
Yielded during the war with Spain.
These taxes, II reimposed. would be
nIaced upon comparatively few things.
such as bank checks. deeds, mortgages
snd other documents OF legal charac-
Ter Approximately such a tax would
weld between slO.O0O.OOo ami $4,000.
600. such tax. the president believes.
,x.nld be better than tax upon food
rs. that the people ought not to be
called upon to bear at the present time.
It is evident that President Taft does
NOT share the general belief that the
senate ia opposed to the maximum and
minimum provisions Of the Payne BILL