The new era., 1909-09-30
PRES. TAFT OPPOSES PERPETUATINC
FORTUNESAND UPHOLDS INCOME TAX
Believes Government Should Be Supported in Its
Measure to Impose Corporation Tax of
One Per Cent on Profits


ing at the Auditorium Tuesday night
the President appealed to the people
in general and Colorado in particular
for the first time during his tour of
the states, to elect legislatures that
would adopt resolution in support
of the amendment. The response from
a popular audience was hearty, but
in nowise enthusiastic, and 1t did not
come from every part Of the building.
This appeal followed his set speech
which was an elaborate, judicial de-
fense Of the action Of Congress in
passing. and himself in signing, q
measure which included corpora
tion tax of one per cent. on corpora
tion profits above $4,000; and the
adoption Of a proposal for constitu-
tional amendment giving authority to
the national government to levy an
income tax without the requirement
of having the same distributed among
the states according to population.
This proposed income tax. the Pres
ident was careful to explain. is to
serve. in his belief, only in times of
national Stress.
With the constitution thus amend
ed the corporation tax could. be
strengthened by future legislation.
OF the corporation tax itself, now a
part of the tariff law, President Taft
spoke at length and defended it, not
SO much on the amount Of receipts,
which would be considerable, but be-
cause 1t would give the government
leverage on great corporations that
are complained of by having their acts
come within governmental, or at least
presidential and departmental review.
To learn whether the corporations
were paying their proper share of tax
alton under the corporation tax pro-
vision Of the law the government
would have access to their books.
Further. the knowledge gained would
aid in tariff reform that might be
found necessary as through the "in-
quisitorial" channel referred to the
government would be able to tell more
or less regarding cost and profit of
corporations.
An Inheritance tax graduated so as
to reach the multi-millionaire's estate,
and bring about the more speedy dis
tribution Of great fortunes, coming
from the states was a concession
from the President, to the state
ii6ato AuCnS DuI III pdTSuLuoSfb ne
stated that even double Inheritance
tax-national and state-would not be
burden too great to bear. He was
severe, almost Rooseveltian, in his
firmness against the habit becoming
more common Of creating trusts, to
continue for a long period, great es-
tates or fortunes In the hands of the
few. An inheritance tax, unlike an in.
come tax. could not be lodged. An
estate. after death, could not be hid
den or covered.
Evils Of Income Tax.
The President was judicial in his ut
terances. He pointed out the objec-
tions to an income tax, its putting a
premium upon perjury, and quoted the
results in England under the old sys-
tenn, and also pointed out that it would
tax earnings along with the passive
income; nevertheless, he supported
the proposed amendment and pleaded
for its support here on the ground
that 1t would be called into operation
only in emergency.
In part President Taft said:
I have selected tonight for consid
GRAFTON and discussion the corporation
tax which was embodied in the tariff
bill recently passed, and the income
tax Amendment which at the same
session of Congress, and really as a
part of the tariff bill, though formally
included in joint resolution, propos-
ing to the states to amend the consti-
tuition Of the United States by giving
to Congress power to levy an income
tax generally without regard to the
states according to population.
ronaccftu for <h}o urnuo
not only because the rates in a num-
ber of the schedules had become ex-
cessive and were quite beyond the
measure OF the tariff set by the Re
publican platform, to-wit, the differ
ence between the cost of the produc-
ton Of the article at home and that
abroad, together with a reasonable al
lowance for profit to the American
manufacturer, but also because within
the last year or two the tariff had
ceased to produce enough revenue in
connection with the internal revenue
law. to pay the expenses OF govern.
ment.
Graded Inheritance Tax.
| ut was first proposed, and recon-
mended 1t in my inaugural address.
that the central government impose a
| tax upon inheritance-a graduated In
heritance tax. that is, a tax the per-
centage Of which increased as the In
heritance was greater. In certain
proportion; but this was objected to
by many of the states. some Of whose
Legislatures passed protests against
1t, on the ground that that was field
OF taxation which the state had pre-
empted. and in respect to which It
would be rather unfair to impose q
| double burden. l have no disposition
| to quarrel with that conclusion. al
though think good deal might have
Youngest Of the Spectators.
William Howard Taft Wilsbury.