The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1909-07-31
Catching the Corporations.

Catching the Corporations.
The latest news from Washington
is that the president will be able TO
persuade the congress to adopt his
tariff Views. and that agreement will
be reached between the executive and
legislative departments of the govern
ment. There appears to be no doubt
that the plan Of taxing the income
Of the corporations will be adopted,
although II IL not to be supposed that
this measure will be accepted without
running the gauntlet Of the courts.
The corporation plan Is described o.,
"a special excise tax with respect to
the carrying on or doing business by
such corporation" and we are admon..
ished by the Chicago Tribune. news
paper which 10 generally very level
headed In OF years. that the point
will be made that the right to carry
on business a. q corporation granted
by the State IL not taxable by the Ma
tional government. Some very good
lawyers take this view. When a SINH
lar proposition was submitted to the
senate ten years ago Mr.. Spooner. who
was then Z most important and in
nuentiai member Of that body. admit
ted that while the national govern
ment might tax the property Of corp
orations. he doubted that II could tax
the franchise Of tn corporation. "Ts
II not the fundamentally employed
by the State for public purpose" he
asked. "and ID 1t not true that the
power upon the part Of the United
States to tax It at all involves the
power 20 tax II out of existence. and
may not the Federal government dis
mantle the States so far as corporate
fundamentally is concerned? Tho
question is whether congress can any
more tax the right to be of the COR
poration than the State can tax the
Federal corporation"
According to Judge Cooley. a tax on
q corporate franchise may or may
not be "just or politfc." II the bust
ness be one. he said. open to free
competition hetween corporations and
individuals. and I'm respect to which
corporation would enjoy no special
privileges or advantages. a tax on the
privilebe Of conducting the business
under q corporate organization would
be wholly unreasonable and unjust"
We do not believe that there Is any
necessity for such a tax. We do not
believe seriously that IL IL within the
power Of the Federal government to
Impose such tux. We do not believe
that such tax would be In the inter-
est of the people. We believe that 1t
Is simply an entering wedge to the ex-.
ercise Of larger powers by the Federal
government. that 1t Is an interfer-
ence with the rights and authority Of
the States. that II Is largely punitive
In Its purposes and that the necessi-
ties of the government do not re-
quire such an extension of It's taxing
powers. We do not believe that the
courts will sustain the CONSTITUTIONAL
lty Of such measure. We know that
the government at Washington just
| now Is In rather a close place on ac-
| count of the wicked extravagances OF
the recent administration. but we dc
not believe that the way to remedy
the evils Of the Rooseveltian regime 1,
resort to extraordinary measures. A
simple stamp tax would put the treas.
ury on its feet again and would save
the government from making tn.
blunder now OF placing new burden,
upon the people: for. after all. tn,
corporations. with some notable ex
ceptions. are owned and controlled ,,
the people.-News and Courier, Jul,
"a.