Daily press. [volume] (Newport News, Va.) 1896-current, 1909-06-15
MAY Be SUBMITTED 70 STATES
Question Of Governments Right to
Levy Direct Tax May be Decided by
Vote on Proposed Amendment to
Constitution-Democ and Pro-
gressive Republicans Together.
(Ry Associated Press.l

WASHINGTON ID. C., June IL
When the income tax question comes
before the Senate for a vote next
Friday. the plan of it's opponents, back
ed By the influence of President Tart,
to circumvent the adoption OF such a
measure will be fully outlined.
Already the opponents express con-
fldence in their ability 10 substitute
for the income tax Amendment pro-
vision for tax. on net earnings OF cor
pcrations. available for dividend pur-
poses. coupled W III prcvisian for the
submission to the legislatures OF the
several states constitutional amend
ment giving congress the power to lay
and collect direct taxes on incomes.
For several days it has been recog-
nized by the opponents OF the income
tax question that the only way they
could make certain the defeat of the
proposition would be to offer some
thing In It's stead which would be ac-
ceptable to the country.
Taxes on net earnings of corpora
tions, gross receipts of corporations,
dividends of corporations and other
forms of corporation taxes were
brought forward one after another on
= " to meet rejection from advocates oil
the income tax. It became known that
Pres dent Taft disagreed with the sup
porters of a tax on incomes and
would lend the administrator in
nuence TO bring about their defeat
Keep Up Bold Front.
| But the income tax faction, number
ing all Of the Democratic senators
and a number of progressive Republi-
cans variously estimated at IL TO 49,
have been keeping a bold front. refus.
ing to be diverted from their purpose
Dy the suggestion of different forms
for corporations taxes.
Senator Aldrich discussed with the
President the proposition for tax
o. two per cent on the undistriDuted
met earnings OF corporations. available
for dividend purposes with provi'
sion. submitting to the states the
question of adopting an amendment
to the constitution giving 10 congress
the right to collect direct taxes OF
incomes.
Presidents Views
The chairman OF the finance com
mittee agreed with the President ina
such a plan would be wise 1t Is IN
derstocd that the President believes
the income tax question should no
again be submitted TO the Suprem'
Court. but at the same time he takes
the position. 1t is said, that congress
should be given the power TO lew
taxes en- incomes.
II is his theory, according to mem
beers OF the Senate who have taike'
with him. that the right Of congress
to levy such a tax should be determ
ined as soon as possible in order tina
this method Of raising revenues should
be accessible in time OF war or emer
gency Of any character.
Every effort Will be made by Sena
tors Borah, Cummins and Bailey. and
their followers among the progressive
:; Republican and Democratic senator
70 get a direct vote in the Senate mex
Friday on the income tax amendment
Leaders IN Conferences.
A Conference on this subject toda,
was attended by N~ssrs. Cumsains
norah, LaFoIlette. Bailey ard Clay
They sought to meet the changing sen
timent in the Senate by deciding 9
amend the Bailey Cummins amend
menf 70 provide for a tax on the IN
distr buted earnings Of corporation
an dexcluding taxation Of dividend
Of corporations which are paid 20 IN
diyiduais. This Is simpiy snothf
for moi providing against double taxa
ito min an iuceue tax law.