The Detroit times., 1909-06-18

able opposition In being manifested al
ready I'm the senate 10 the Taft-Ald-
rich propositions TO put a tax OF two
per cent on the net incomes OF all
corporations.
AS a result it is possible that when
the amendment is reported from the
finance committee II will contain pro-
visions which Will exempt from taxa
ton the incomes or corporations which |
do not exceed certain figure, and
may also exclude from the operations
of the law the incomes derived from
corporations OF individuals which DO
not exceed a certain figure, and may
also exclude from the operations or
the law the incomes derived from cor
porations OF individuals which do not
exceed a certain amount In othe-
words, an effort is TO be made 10 pro-
tect the small stockholder and throw
1.-THE burden OF the proposed two per
cent tax. small as II is. upon wealth.
One OF the first objections raised
To the plan proposed by Senator Aid
rich and endorsed by President TAFT
Is that the pending suggestion viii
affect everybody who has even thu
smallest kind of an interest In a cor
poration or a joint stock company OK
any kind.
Depend on Dividends.
Railroads for example, not only IN
the east but in the west. count among
their stockholders thousands of people
in very moderate circumstances who
are usually dependent upon the divi
dends accruing from their stock hold
fngs In these roads. IL IS claimed That
many widows and orphans dependent
upon stock legacies OF corporations,
would find their incomes materially re-
duced on account OF the amount which
the federal government would take OF
the net earnings OF the corporations
whose stocks are held In trust for such
widows and orphans. or FOR the bene-
4 ht OF charitable institutions, a large
part OF whose income is derived from
dividends from corporation stock.
According to figures obtained today
from the interstate commerce commits
sion. the net earnings Of the railroads
Of the country for the nine months cr
the present fiscal year ended March
81 aggregated more than $500 900.
which makes an average OF about $50
0O0. 900 a month. Should the same rate
be maintained. the grand total would
approximate 70O.000.000 upon which
two per cent tax would yield $4,000 +
600 or more than half OF the amount (
which the president estimates should /
be collected from all OF the corpora
lions OF the country.
Senators Borah and Bristow. two OF
the most ardent Republican support
ers of a direct income tax. Joined IN
a statement as TO the effect OF the |
proposed tax on corporations. as fol
lows:
"A tax upon the net incomes OF cor |
porations alone will very imperfectlv
reach the desired result II will tax
tens of thousands OF stockholders
whose total incomes are very small.
and will exempt in large measures the
immense personal incomes OF the
country.
May Shift Tax Burden.
There is no reason for exempting
from taxation the vast incomes OF in
. dividuals like Carnegie. Rockefeller
| and others, a very large part OF whose
fortunes do not consist OF corpora
ton stocks.
cit is also wei known that corpora
tions. especially the larger ones can
in most instances shift the burden OF
the tax on the public. by imposing
upon the people Increased charges and
prices"
II is certain that II the plan 70 be
proposed by the finance committee
does not contain exemptions 10 cover
the cases OF small corporations and
foint stock companies. amendments
will be offered on the floor by senator's
who object TO the assessment OF taxes
upon the net earnings Of these small
concerns.
Senator Cummins. who, with Bailey
Is the Joint author OF he pending
amendment for a direct income tax.
does not admit that the fight has been
lost. although admitting that the sup
port given by President Taft has great
" strengthened the hands OF Aldrich.