Ottumwa tri-weekly courier. [volume] (Ottumwa, Iowa) 1903-1916, 1909-07-03
rur coRPoRATloN TAX.

The Chicago Tribune mas pfepa. ou
list of six arguments against the
rorporation tax plan favored by Presi-
dent Taft and introduced in the sen
ate by Mr.. Aldrich as an amendment
10 the tariff bill. The Tribune de-
FLARES that there are few measures
which would not at once commend
themselves to the public when 1ndors-
cd nv President Taft, for all recoS-
nize the soundness of his judgment as
we'll as the sincerity of his motives.
But the corporation tax is held 10 De
mo of these few for the following rea-
Bons: =,
az 1t would mean inequatry IN
taxation. A corporation carrying on
particular business would be taxea'
while a partnership or individual car
rving on the same business would De
ayemnt. A man like Mr.. Carnegie,
with his fortune in bonds, would es-
eape while the incomes of thousands
ne small stockholders In big and little
rornorations would be cut down.
~, 1t would be double taxation IN
The case of corporations which are
taxed by states or municipalities on
account of the special privileges winch
the national government did not con-
fer hut which it Is now proposed 10
tax.
(2a The tax would be inimical to
The interests of the country in that 1t
would discourage the use OF the COIL
venient corporate method Oh CARRYING
on business. The business Of the
country is largely transacted by cor.
porations, not merely by the great
ones which are in the public eye, ana
with which the public Is sometimes
angry, but also by tens OF thousands
Of smaller ones which never are com
planned Of and which should. not o'7
specially taxed because they do pusf
ness in particular way.
az That while the federal super
vision of corporations engaged In In
z terstate commerce, which has often
been urged by President TAFT, may pe
desirable, anything which looks IN the
direction of federal supervision OF cor
/! porations doing an intrastate or pure
ly local business is not desirable. They
should be regulated, If they need regu
lation. by the states that created them
(5) The tax would not yield revenue
during the years of deficit. While the
president is convinced of its constltu
tionality, the question would be taker
into the courts and would not be dis
posed of offhand.
(6) Senator Aldrich says the tas
will be only temporary one, for It's
continuance would destroy the protec
tive system because of the great rev
enue it would provide. 1t is harder TT
repeal such tax than to impose 1t
Congress would be reluctant to sur
render tax whose proceeds minis
tered to congressional extravaganza.
Senator Cummins made an able
speech in opposition to the corporation
tax yesterday and in favor of the in
come tax His plain presentation q
\ his position won friends for his cause
But the Chicago paper does not agree
with Senator Cummins that the in
,come tax is the remedy. 1t believes
that any deficit that would come II
the wake of the new tariff bill could
be made up by stamp taxes, which
would bring in revenue at once, be
cause their constitutionality Is un
questioned, and to which there woule
be no popular objection. They would
be wisely distributed, equitable ani
/, unfelt, the Tribune believes ant
mould be substituted for the corpora
ion tax.