The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1909-06-17
MESSAGE SENT
TO CONGRESS
BY president
Income Tax Amendment to
Constitution to Be Sub
mitted to States.
CORPORATION TAX TO
REPLENISH TREASURY
TAFT POINTS OUT NECESSITY OF
RAISING MONEY, AND SEES NO
HOPE IN TARIFF BILL.

Washington, June 16.-Recommend-
ing a per cent tax on the net income
of corporations and the adoption of an
amendment to the constitution provid-
ing an income tax without an appor-
tionment among the several states,
President Taft today sent to congress
a message embodying his views on the
subject.
The president speaks of the appar-
ent inability of congress to agree to an
inheritance tax, and as regards an III
come tax he refers to the decision Of
the supreme court in the case Of Pollock
VS.. the Farmers Loan & Trust com
pany, in which the court held the tax
to be unconstitutional unless appor-
toned according to population. 1T is,
says the president, undoubtedly a
power which the government ought to
have. 1t might be indispensable TO the
nations life in great crises
Scope of the Amendment.
The amendment suggested provides
for the imposition on all corporations
and joint stock companies for profit.
except national banks otherwise
taxed, savings banks and building and
loan associations, of an excise tax of ,
per cent on the net income of said cor
pOratiOns.
The president points, out That another
merit to the tax on corporations is the
| federal supervision which will give 10
! the government, the stockholders and
the public knowledge of the real bust
/ ness transacted. The message was
/ brought into the senate while Senator
/ Burton was speaking. Senator Root
1 being in the chair, ordered the reading
OF the document as soon as the Ohio
senator ceased speaking.
When the purpOrt of the measure was
made known, both Republicans and
Democrats remained in their seats and
all listened attentiVely Senator Gore
moved to refer it to the committee on
finance, with instructions to report by
next Friday a resolution for an income
tax in accordance with the presidents
recommendation. A motion by Senator
Aldrich to lay Mr.. Cores motion on the
table was carried, 81 to %, a strict par
ty vote.
Had Been Referred.
Mr. Root, in the chair, had already
made the customary reference of the
document to the committee on finance
before Mr.. Gore made his motion.
Discussing the motion, Mr.. Bailey
said he would not vote for the amend
ment as offered, and that he would in
sist on a graduated income tax.
Mr.. Hepburn declared himself Op-
posed to any proposition for an income
tax.
President Taft is deeply. sratifed over
the situation which called out his mes
sage, and believes the prospects for a
real revision of the tariff downward are
brighter today than they ever have
been. The message follows:
The Message.
ITO the Senate and House of Repre-
sentatives; It is the constitutional
duty Of the president from time to time
to present to the consideration of con-
gress such measures as he shall judge
necessary and expedient. In my inaug-
ural address. Immediately preceding
this present extraordinary session Of
congress, 1 invited attention to the ne
cessity for a revision of the tariff at
this session. and stated the principles
upon which I thought the revision
should be effected. I 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 1t
was not possible to do so by import
duties, new kinds Of taxation must be
adopted, and among them I recon-
mended a graduated inheritance tax as
correct in principle and as certain and
easy of collection. The house of repre-
sentatives has adopted the suggestion
and has provided in the bill it passed
for the collection of such a tax. In the
senate, the action Of its finance commit
tee and the course of the debate indi-
Continued on Page 10.