Ottumwa tri-weekly courier. [volume] (Ottumwa, Iowa) 1903-1916, 1909-06-17
SAYS FIRST WOULD
BE GOVERNMENT AID
TAX ON NET INCOME OF coRPo
RATioNs WOULD GIVE BETTER
SUPERVISION; CITES couRE
DECISION ON INCOME TAX.

Washington, June 16.-Recommendg
ing legislation looking to the. placinG
of a 2 per cent tax on the net incoms
of corporations and also the adoptiom
OF an amendment to the constitutions
providing for the imposition of an in3
come tax without apportionmenK
among the several states, President
Taft today sent to congress a messag8
embodying his views on the subject!
The action followed protracted spaS
cial cabinet meeting.
Refers to Income Tax Decisions.
In his message the president speakg
of the apparent inability of congresA
to agree on an Inheritance tax, and aa
regards the income tax he refers I'd
the decision OF the supreme court IN
the case Of Pollock vs.. the Farmera
Loan & Trust Co., in which the court
held the tax to be unconstitutional un1
less apportioned according to popula2
ton.
''It is,' the president says, " una
i doubtedly power which the govern
ment ought to have. 1t might be int
! dispensible to the nations life jM
great crises" \
An amendment, therefore he de4
clares was the only proper coursad
Such an amendment to the constitute
ton, he continued, was preferable tH
the one proposed of reviying a law
| judicially declared to be unconstitr1l
tional.
The Corporation Tax. i,
I The amendment which he proposea
should be made to the tariff bill pro3
vides for the imposition upon all cor7
i porations and joint stock companiea
1 for profit, except national banks, "oth9
erwise taxed" savings banks and
! building and loan associations, of AM
excise tax of 2 per cent of the net ind
come of said corporations. This 1t iA
estimated by him will bring in an arnS
nhal revenue of $25,000,000.
This is a tax on privilege and no&
on property" he says, "and Is withi4
the federal power without apportionA
ment according to population" !,
Would Increase Government PoWers
The president points out that ana
other merit to the tax on corporations
is the federal supervision which ii
will give to the government and stoclny
holders, and the public knowledge Of
, the real business transactions and
gains and profits of every corporation
in the country The adoption of the
amendment, he says, will make long
: step toward the supervisory contros
, OF corporations which may prevent
further abuse Of power"
Down Motion to Refer Message.
Upon the completion of the reading
: of the presidents message in the sem
J ate, Mr.. Gore moved to refer 1t ia
? the committee on finance with instrucs
tions to report by next Friday the res,
oiution for an income tax in accord
: ance with the presidents recommen,
dation. A motion by Mr.. Aldrich I'd
!, lay Cores motion on the table wa1
= carried by a strict party vote.
e Philippine Amendments Pass.
t Opposing the provision Of the tariff
I bill by which restrictive amount ~
Q sugar and tobacco are to be admitted
e free Of duty from the Philippines Mn
l. Foster of Louisiana addressed the
e senate as soon as the session began
s today He expressed the opinion that
T. the establishment of free trade rela
tions between the United States and
x tn islands would destroy I'll hope oi
u their independence.
9 After Mr.. Dick had made an effori
to prevent the free entry of tobacco
/ from the Philippines, the Philippine
q free trade section with amendment.
d was adopted by vote of AZ to %
u Six Republicans, Root Borah Bristow
u Clapp, Crawford and LaFollette votet
y with the Democrats against thu
II finance committees proposition,
: