New-York tribune., 1909-06-16

determine whether or not they win SO amend
the Constitution The joint resolution will not,
Of course. provide that such = tax shall he i'm
posed. hut only that Congress shall have the
power 70 impose such tax.
sn the estimation ~ the President such power
should be enjoyed by the federal legislature
FOR use in emergencies. He is confident that
the proposed tax on the net earnings Of the
corporations will Weld ample revenue To main
tain the government. and that even the amend
-Snent OF the Constitution under such conditions
viii not be followed ny any fnsistent demand
Shst an income tax be imposed. He believes
moreover. that the tax the earnings of the
corporations viii prove popular that after
s. is once in operation there will be few who
viii TO substitute for il a tax on the in
comes of individuals. a tax which implies
system of inquisiticn generally repugnant 10
Americans.
The Presidents message will advocate the
principle az tax on the net earnings OF the
corporations. but viii not insist on any specific
rate Of taxation. The desire of the President
end the purpose Of she Republican leaders is so
TO frame the tax to yield an income Of from
S2s.o0o.Ooo to 3o.o00.oOo and the rate will he
determined by the estimates now being prepared
as 10 the revenue such tax Will yield, although
: per cent has been used in the discussion
snerelv matter of convenience.
There are those who fear the Presidents
proposition viii work some injustice small
corporations. which are in reality little more
thar partnerships. but this argument is met
with the contention that such corporations can
-eaEily resolve themselves into partnerships. and
that If they d. NOT it IS because they wish 10
escape the individual responsibility which
partnership implies and from which incorpora-
ton relieves them II is maintained. however.
thst in return for such immunity # Is only fair
'that they should contribute their share 10 the
maintenance Of tire state which gave them being.
Most Of the Senate leaders convinced that
70 the larger corporations the tax will prove no
hardship. and that 10 many. especially those
which list their securities in the open market
- win prove grateful because Of the federal
euperTision il assures. thus enhancing the value
of such securities in the eyes Of investors Some
70 far - predict that the enactment of
fhe law and its successful operation wil insure
rn influx n untold millions of foreign capital, |
fhe owners Of which win find reason for security
IN the protection Of the minority stockholder |
which the law is expected 10 afford.
There IS no reason 10 expect that the Cum !
,nins- Bale, income tax amendment or the Taft
corporation proposition viii he acted next |
friday. So slow is the progress being made |
with the schedules that 81 IS regarded as almost
ce-tsin NJ Aldrich viii again be obliged 10 |
sneve that consideration Of such special taxa f!
4lon be deferred 70 later date
As AZ example of the interest which The Pres |
scent Is taking in thr proposition he has faith |
cred 81 has become known that the amendment /
eraodyinz The tax the net earnings of cor
rorstions vill he drawn by himself with the |
assistance ~ Attorney General wickersham. 1
xnd draft # the statute as framed bv them |
vii then be handed 70 the Committee on /
Finance