Vilas County news. [volume] (Eagle River, Vilas County, Wis.) 1896-1927, 1909-07-07
|ALBR|CH FAvORS
CORPORATION TAX
SAYS 'TWouLD BE A SOURCE OF
REVENUE AND DEFEAT AS
SESSMENT OF INCOMES.
BAILEYs PROPOSAL FOR DUTY
ON TEA MEETS DECISIVE
DEFEAT.

WdSuluSlOu, june oO-WitA tA0
tariff schedules disposed of and the
door locked against the intrusion OF
amendments upon them, the senate
yesterday finally entered upon consid-
Grafton of the income and corporation
tax questions as connected with the
tariff bill
While the senate was more than
four hours in formally coming to the
question of taxation of incomes the
subject received more or less individ-
ual attention while the tea provision
was under consideration, and it was
during that stage of the proceeding
that the most interesting occurrence
of the day took place. This was the
announcement of the real attitude of
Chairman Aldrich of the finance com
mittee towards the corporation tax
provision, which he had introduced at
the instance of the president.
1t had for some time been whis-
pered around the senate corridors
that the Rhode Island senator had
become an advocate of tax on the
earnings of corporations as the most
eral income tax amendment to the
pending bill. Mr. Aldrich yesterday
stated his own position, which was in
accordance with the rumors. He
spoke in response to a question from
Mr.. Clay, and in so many words con-
fessed his advocacy of the corpora
ton tax as a means of defeating the
income tax. He added another rear
son, which was that he thought that
for the next year or two there would
be a deficit in the treasury receipts
which he was willing to have made
good by an income that would result
from the proposed corporation tax.
With this service performed he
thought the law could and would be
materially modified if not entirely re-
pealed.
This frank declaration was seized
upon by the democrats as a confess
sion that the corporation tax is a
mere subterfuge to destroy the in
come tax, and they were not slow in
playing UP 'the development Mr..
Aldrich, denied, however, that he had
intended to characterize the corpora
ton tax as subterfuge and defended
it as legitimate means of raising
revenue.
With only one amendment pending
when the senate met it was supposed
it would be put out of the way soon,
and that in accordance with the unan-
imous agreement the senate would
Immediately take up the internal tax
question But that amendment was
the proposition for duty of ten
cents per pound on tea, and Mr.. Till
man was behind it. The South Car
olina senator pressed so hard and so
long for his provision that it was
after two o'clock before a vote was
taken and the schedules thus disposed
of. There was another effort on the
part of Mr.. Owen to revert to the
question of duties, but in accordance
with previously announced deter
Mr.. Aldrich moved to lay
on the table the Oklahoma senator's
motion, which looked to "a gradual re-
duction of all duties imposed under
the terms of the bill, and it prevailed
Notwithstanding Mr.. Tillman's
strenuous effort, his tea amendment
was lost by decisive vote of s. to
IS. The provision had the support
of only two democrats, Bailey and
Tillman.
When the income tax question was
formally taken up Mr. Lodge moved
as a substitute for the Bailey straight
income tax proposition a measure
providing for countervaiIing duties
against countries imposing duties on
articles exported to the United
States.
Senator Flint, who will have charge
of the corporation tax provision,
spoke at some length in explanation
of the provision, and was followed by
Mr. Dixon, who advocated the reten-
ton of the inheritance tax provision
in preference to any of the income
tax measures. Mr.. Flint expressed
the opinion that at the rate of two
per cent. on the net earnings of the
corporations of the country the reve-
nues would be augmented to the ex-
tent of forty or fifty million dollars.
Mr.. Kean placed the figure at $780,
oOO6oO.
Mr. Cummins began speech in
support of the income tax. but had not
concluded when the senate adjourned.
Getting at the Facts.