Omaha daily bee., 1909-07-02
ROOT HEARD FOR TAFT PLAN
Author Of Corporation Tax Bill
Supports it in Senate.
IS AGAINST INCOME TAX
New York Statesman PrOnOunces "a
an "Unyvise Measure"-Senator
BOrah of Idaho IL stin
Hostile.

General wickersham, drafted the Taft plan
for a corporation tax, made a brief speech
In the senate today in suppport Of that
form OF taxation, as against an income tax.
Speeches in opposition to the administra-
ton plan were made by Mr.. Borah Of
Idaho and Mr.. Clapp Of Minnesota, both
republicans, and a number of brief speeches
" ere made by other senators on both sides
Of the question.
The senate came within one Of agree
ing to vote next Tuesday on the entire
income tax amendment to the tariff bill,
including the corporation tax substitute.
The compact was prevented by the obJec-
ton Of Senator Buckley and his opposition
aroused no little feeling
1t was apparent when Senator Flint made
his proposition for a vote that the discus
sion of the income tax, question had been
almost IL not quite exhausted.
Senators Little Interested.
It was evident throughout the entire day
that the corporation tax question had failed
to arouse as much interest in the senate
as had been expected and some suggestions
were heard in support of a proposition
looking to the postponement of the entire
income tax question, including corporation
tax and Inheritance tax, until the regular
session in December.
The corporation tax was taken UP
promptly when the senate met today. Mr..
Borah had resumed his speech which no
began yesterday when he was interrupted
by Senator McCumber Of North Dakota.
who disavowed any sympathy with Senator
Aldrich's remarks as to his reason for
| enpnortipu the nornnraftop a. II -
clarsd that Mr.. Aldrich had not spoken for
members Of the finance committee gen
orally.
The personal reasons of that senator,
for his support of the corporation tax" said
Mr.. McCumber, referring TO Chairman Aid
rich Of the nance committee, were not
put forth as reasons which sctuated the
committee In any respect. He gave them
as his own personal reasons. do not
understand that a single other member OF
the committee agreed with him in thai
respect"
CIapp's sharp Query.
Should not the senator from North Da.
kota poll the finance committee before he
attempts to voice their views?" inquired
Senator Clapp.
Denying that he had attempted to voice
NAN vi NHG SOllllllllAbtt MI. " c.
Cumber declared he only wanted to make
clear the fact that Mr.. Aldrich did moi
voice that sentiment. He added that he
would prefer the income tax to a tax cor.
p%oratlon II 1t could be made c~onstltu.
tional.
Il will show later" said Mr.. Borah, mot
only from the statement of the chairman
Of the finance committee, but will
| nrOVa haVnnh 1nnht A.. AL
corporation tax had its origin in 6
desire to defeat the income tax. And wher
it shall have served its purpose, it will die
as the great leader in this chamber said
an ignominous DEATH"
In opposing the corporation tax, the Id
aho senator declared he was followins
in the footsteps Of leaders of his party
He recalled the corporation tax proposed
by the minority as a war measure in 1898
declaring 1t was not rejected by the repub
lican majority as a matter of expediency
not because the tax was not necessary, blu
because Of the principles it involved. II,
read extracts from a speech by Senate
Lodge made In 1898 In strong opposition
to the corporation tax proposed by tn,
democratic minority.
Senator Borah charged that the men VIII,
were now advocating the plan of submit
ting the income tax question to the state.
for the amendment OF the constitution
would be found against the amendment
when It reached their own states. Thii
charge aroused Mr.. Flint of the financ,
committee, who said he would favor tn,
amendment in California and expressed
confidence the amendment would carry
He predicted that the corporation ia,
would not be repealed as Mr.. Aldrlcf
had prophesied.
Root for Taft Plan.
Senator Root made a short speech. Con
Guiding he said:
Gentlemen may say 1 am for a cor
poration tax to beat the income tax.
am for the corporation tax because
think 1t is better policy. better patriotism
and higher wisdom than the genera
income tax at this time. 1 wish to bea
the income tax provision because / thinl
It is unwise and wish to pass a corpor
alton tax provision because l think IL Il
wise"
He viewed the income tax as a means fol
dislodging the protective tariff and de.
claTed that In his judgment the proposed
Income tax would raise from $3.50. O0O, 900 tC
SEQ, OOO.O 900 annually.
Il think" said the New York senator
the United States ought to have the powe
to lay and collect income tax because
want my cOuntry to have the power tC
summon every dollar possible to its RELIEF
In times OF stress"
He said he would advocate the opproya.
by the legislature OF New York Of tn,
proposed constitutional amendment fol
that purpose.
Replying to Mr.. Bacon, Mr.. Root said
those who had considered and framed tn,
pending corporation tax had agreed tina
they could not reach the bonds of cor.
porations in the hands OF the bondholder.
consistent with the decisions Of the su.
preme court
Severely critictsing the corporation tar
amendment, Senator Clapp called atten-
ton TO the presidents message, in which
he said savings banks and building and
loan associations should be excepted from
the provisions OF such a measure.
And yet" he said, this amendment
which We are told he approved included
savings banks and building and loan as
sociations."
The publicity feature OF the corporation
tax measure, he said, provided very honest
returns for the purpose of taxation. 1,
was not framed. ne said, to bring out any
secret agreements that might exist he-