The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1909-09-22
Urges Adoption of the Income
Tax Amendment.
GOOD FOR EMERGENCY
But Objectionable fer General
Use, He Holds.
1t Tends to Place Premium on
Perjury.

last night in the Denver auditorium
where a year ago Mr.. Bryan was nom
mated as bis opponent in the presiden-
tial race, faced a crowd of thousands
that in its noisy welcome and eontinu-
IL g enthusiasm recalled some of the
scenes OF convention week. President
Taft switching from his purpose to dis
cuss the question of the conservation
OF natural resources in his Denver
speech elected to take up the corpora
ton tax passed as part of the Payne
tariff bill and TIC defend it against
| the proposition to impose a direct in
come tax which he acknowledged SEEM
| ed likely to pass the senate when the
| corporation tax was devised as COM
promise. The president strongly urged
that all the states should adopt the
proposed amendment to the constitution
however, to make an income tax posi-
bic in time of need.
Mr.. Taft was joined here by the sec
rotary of the interior, Mr.. Ballinger,
who will accompany him on part OF
the trip through the far Northwest. 1t
is likely that the president desired
further conference with Mr.. Ballinger,
whose conduct of the interior depart
ment be upheld in a long letter called
cut by the Ballinger- contro-
Versy before making a final exposition
of the aims and objects of this admin
istration as to the conservation of the
resources. Mr.. Taft probably will not
take up the subject now until he reach
es Salt Lake City, where he spends
Friday and Saturday; or he may wait
until he arrives at Spokane, Wash,
where the Ballinger-Pinchot contro-
Yersy really had it's first public airing.
Best Form of Income Tax.
The president declared that the cor
X Grafton tax was in itself the best form
of income tax that could be levied and
contained many of the best features
of the income tax law of England. In
urging that the states should vote for
the amendment to the constitution per-
hitting tho levy of direct income tax,
with the cppcrtioning of the proceeds
among the states. according to their
population, the president declared that
it would be possible to SO amend the
corporation tax as to include within its
scope every desired feature of the in
come tax except the levy upon incomes
derived from actual salary and pro-
feSsional services.
The president said he opposed a di-
rect income tax except in cases OF
emergency and he believed it to be
Prime fault in the federal constitution
that no provision is made for a direct
levy to meet war Time or other extra
ordinary expenses.
Mr. Taft declared that it was the
supreme court decision declaring UNI
constitutional the income tax law pass
ed by Democratic congress some
years ago that prevented the leaders
in congress during the session recent
1y closed from including in the corpor-
alton tax measure provision Tor
levy upon bonds and bondholders. To
tax bonds would result in a direct tax
upon the individual holders Of the
bonds and come in contact with the
decision of the court that no direct tax
could be levied by the national govern
ment without the resulting apport1on-
ment of the proceeds among the states.
The English System.
orasidaD+ based his argument in
favor of the corporation tax as com
pared 70 The direct income tax almost
entirely upon the results of the income
tax in England
He pointed out that the tax there is
not a direct levy, such as was recently
in the senate only through a
&C mpormise, but that it laid the tax
upon the income before it came into
the hands of the individual
1t is a question, the president declar- |
cd whether incomes earned as salaries |
and from professional work should be |
-axed as heavily as incomes derivedI
The latter, he said, was the effect of
me corporation tax.
The president received a most en-
.husiastic welcome to Denver. Signs
we're hung along the streets all over the
lily reading, Welcome to Denver, the
Capital"
While here the President is a house
quest of United States Senator Hughes,
ion for two hours at the state capitol.
At the auditorium, after a few pre-
remarks, as to the extent and
purpose of his trip through the west,
Mr. Taft touched briefly upon the tariff,
saying that, while a revision had been
deemed essential there was also a
deficit in the treasury to be met. This
partly will be met by a cut of $40,000,000
to $50, 900 goo in the appropriations to be
made by congress and partly by the in
come from the new corporation tax law.
Mr.. Taft said he had favored at first
an inheritance tax but the objection
that the states had pre-empted that
field had sufficient weight to defeat the
The president continued:
"A part of the Republicans and all of
the Democrats of the senate united in
for consideration an income
tax on individuals throughout the
United States.
THE law was as near as it could be
made to that income tax law which n I'd
once been considered by the supreme
court some ten years ago, and which
was held to be unconstitutional b. a
vote of to 4. 1t was conceded that the
tax would probably raise $3.50, 00O. 900 to
|