Ladysmith news-budget. [volume] (Ladysmith, Rusk County, Wis.) 1907-1927, 1909-07-01
ACKNOWLEDGEMENTS
WASHING I ON LETTER
by John j. Hannah
NEUTRALITY-SUSPICIOUS.

81
ACKNOWLEDGEMENTS
Washington, June 26. Give US a
lawsuit. That in substance is what
the corporation tax means. eff you en-
act an income tax you are merely en-
acting legislation which will result in a
lawsuit So let US discard the income
tax and enact a corporation tax. =
Elihu Root and Nelson w. Aldrich
did not say what is quoted but that is
the substance Of the argument of these
eminent statesmen. Yet when they
bring in measure to put their ideas
into the form of law, it is palpably an
invitation for lawsuit. The corpora
ton tax amendment which President
Taft has permitted to be christened
with his name is subject to the same
legal objection which is urged against
an income tax. Stripped of all legal
verbiage the income tax was declared
to be unconstitutional, for the reason
that it is direct tax and that it was
not apportioned according to the popu-
lation of the several states. The cor
poration tax is also direct tax and it
is not apportioned according to the pop
ulation of the several states.
The changing of the name in no way
changes the character of this tax
Good lawyers in the Senate say that it
is open to the same objection urged
against the enactment of an income
tax and to the same extent. The
thorough airing which this whole sub
ject is receiving upon the floor of the
Senate will open the eyes of the coun-
try.
Although President Taft put his
official 0. K. upon the measure before
it was introduced he must be pretty
near to the point where he will change
his mind. The President recommended
corporation tax strongly because he
said that it would furnish a means for
publicity of the affairs of corporations.
AS it has been proposed by Mr. AID
rich and 0. K. ed by the President it
does not do anything of the kind. 1t
contains this significant clause. cit
shall be unlawful for any collector,
deputy collector, agent, clerk or other
| officer or employee of the United States
to divulge or make known in any man.
ner whatever not provided by law to
any person any information obtained
by him in the discharge of his official
duty or to divulge or make known in
any manner not provided by law any
document received, evidence taken or
report made under this section, except
upon the special direction of the Presi-
| dent. A fine of one thousand dollars
or Imprisonment for one year or both
is the penalty for the violation of this
section. There will be no information
| gathered under this law that will be of
any value to the public except the
President should direct that it be made
public. 1t is all made dependent upon
the will of the President. A publicity
feature that is dependent upon the will
of any one man is of little or no value.
A publicity feature, to be of any value,
should automatically make all of
information which could be of value to
the public in the framing of legislation
for the control of such corporations,
public. Those who have studied the
the question carefully say that in the
levyill., and collection of taxes there
should be no part of the machinery
which would be sealed. Other tax
payers should have the opportunity to
know all of the facts so as to deter
mine whether or not their valuation
and assessment is being made upon the
correct basis. And they should not be
dependent for such information upon
the will of any man or officer. The
publicity feature as prepared under the
direction of Mr.. Aldrich is a fake. 1t
could not be otherwise Mr.. Aldrich
the master and Mr.. Root and Mr..
Wickersham the instrumentalities
which worked out the legal end of this
tax have no sympathy with the purpose
of any such law and it cannot be ex-
pected that men not in sympathy with
it's purposes would work out law that
would be effective.
T.. IL IL IL q