The Detroit times., 1909-06-19
TAX BURDEN TO
Be ON CONSUMER
House Will Block Dividend Assess
ment" and Tariff Provisions Will
Hit the Masses.
BY gibson GARDNER.

WASHINGTON. ID. c., June 10
The light is out in the pipes of the
people who thought there was a
chance for tax on wealth in the
tariff measure congress Is about 10
consummate. Taft and Aldrich killed
the income tax amendment at time
when II might have become law.
and this Is the story OF how the
trick" was turned.
The income tax is dead, there will
be no Inheritance tax, 1.-The house Will
be hostile to Taft's proposed dividend
tax" and there you are. l quote very
distinguished senator: There will be
no tax on wealth--the burden is all
upon the consuming public and II is
the most infamous piece Of political
trickery of a decade"
Two or three days before Taft
issued his "feeler" In regard to a
dividend tax he had been seen by
Aldrich, who was excited and
scared. Aldrich informed the prest
dent that there was majority OF
three in favor of the income tax
amendment and that unless some
thing was done the amendment would
pass. .Aldrich called upon Taft to
help him out of the hole. The pres
ident responded. Whether the idea
was his is not disclosed, but shortly
after Aldrich had blown out OF the
White House the dividend tax scheme
was sprung on the public.
Deadly Work Done.
Before Taft's special message rec
ommending tax on corporation In
comes had been sent TO congress the
deadly work had been done. II had
broken the forces In favor OF an In
come tax. II had pulled away Bourne,
Jones. Of Washington; Brown, of Ne
braska Sutherland, and Nelson.
This meant that the Cummins- Bailey
Borah income tax amendments could
not possibly pass.
The house bill contained pro.
vision for an inheritance tax That
was left out OF the senate bill by
Aldrichs committee.
Senators like Cummins, Borah, La
Toilette and Bailey all agree that tho
action of President Taft In sending
his recommendation in a special
message was distinctly hostile. have
talked TO them and they are of no
uncertain mind. The Republicans arc
not anxious to rush into print with
criticisms of the White House, but
they are frank enough in their ordi.
nary speech.
81 have no objection to voting for
a constitutional amendment now or
any time, making an income tax be-
yond any legal question" said Senator
Il,,t Y m hn
stood that a constitutional amend
ment is no substitute for a genuine
income tax proposition"
Tax Burden Shifted.
On the subject of the effect OF the
proposed corporation tax, Borah was
at is only another way
TO shift the burden of the tax to tho
consumer and the producer at the
bottom" said he. ''If mans In.
come is $4,000 and the law tells him
he must pay per cent on that IN
come TO the government, there Is
no way for him to shift that tax.
But If 1t is a corporation that has an
income OF $4,000 and the govern
ment comes along and puts per
cent tax on those earnings, the cor
poration turns around and adds the
tax to the price OF the goods 1t sells,
or takes enough from the wages OF
its men to make up the difference"
Many friends OF genuine income
tax believe that President Taft has
made very serious blunder. One
said:
"Mr. Taft Is on record as favoring !
q straight-out income tax He has
said in speeches and official messages
that he considered II unnecessary to
amend the constitution in order TO
have a perfectly sound and legal In
come tax. And now. as soon as there
is danger that an income tax law is
to pass the senate, Mr.. Taft PUSHES
in with q message asking for con
stitutional amendment, and for a cor
poration tax In place OF an income
tax How in the world is he to recon
cile his present conduct with his past
declarations7"