The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1909-07-02
BULkLEY BLOCKS
PLANS OF SENATE
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! fBAND Uf DEN Al &
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who were advocating the plan Of sub,
mitting the income tax question to the
states for amendment Of the consti.
tuition would be found against II when il
reaches their own states, This charge
aroused Mr., Flint of the finance com.
mittec, who said he would favor the
amendment in California and expressed
confidence that the amendment would
carry. Hhe predicted that the corpor-
alton tax would not be repealed as Mr..
Aldrlch had prophcsied,
Nothing But Aldrich.
Mr.. Borah declared The people would
have nothing 10 do with the disposal
Of either question. as everything would
he left to Senator Aldrich. who had
shown himself strong enough 10 prevent m II
the enactment of an income tax law
when there was a majority in the SEN
ate for that tan
Mr. Bourne of Oregon predicted the
enactment of the corporation tax
amendment into LAM would result in the
publicity Of corporation affairs and
eventually be of much advantage TO the
pubic. The question of revenue, be
said, was secondary
'ShhNbt jtobt, champion or inc 9Q-
mlnlstration and one of the authors of
the amendment, followed Senator
Bourne. He said the first draft of the
corporation tax amendment was made
pY the attorney general on request of
the president. This draft, in the hand.
writing of the attorney general and in
terlined by the president himself, was
sent TO the ways and means commit
tee, he said. That committee had pre-.
ferred the inheritance tax. but where
the senate finance committee had strick-
en- it out, the corporation tax amend
ment had been slightly amended and
brought forth again,
Gentlemen may say I am for cor
poratlon tax 10 beat the income tax. -
said Mr.. Root. 81 am for the corpora
tion tax because I think it is better
policy. better patriotism and higher
wisdom than the general income tax at
this time and under these circunl-
stances. ! wish to beat the income tax
provisions because / think it is wise, -
Advocating the pending provision for
corporation tax. as opposed to the
Bailey-Cummins income tax amendment,
Mr., Root said:
Root Opposes Income Tax.
"rChe corporation tax saves all of the
provisions of the income tax that are
excellent and can be enforced. The in
come tax is, to my mind, unwise, un.
Just and unconstitutional, while the
corporation tax is wise and Just and
constitutional -
He viewed the income tax as a means
for dislodging the protective tariff and
declared, in his Judgment, the proposed
income tax would raise from Sl50,O0O,-
600 to S200.000,000 annually.
'tI think, said the New York SEN
ator, "the United States ought to have
the power to Law and collect income
taxes because i want my country to
have the power to summon every dol
lar possible to its relief in times Of
stress. -
He said he would advocate the APP
proval by the legislature Of New York
for the proposed constitutional amend
ment for that purpose. Replying to Mr..
Bacon. Mr.. Root said those who had
considered and framed the pending cor
poration tax had agreed that they could
not reach the bonds Of corporations in
the hands of the bondsbolders' and at
the same time frame law in accor-
dance with the decisions OF the SUI
prcme court.
Need for Precautions.
Mr., Bacon suggested il would he
within the power of these corporations
to convert their stock into bonds and
thus defeat the payment Of the tax.
He wished to know whether that could
be prevented, IL was to avoid that,
Mr., Root said. that the provision was
placed in the amendment preventing the
payment of interest on indebtedness in
excess Of the amount of ITS capital
stock
Mr.. Bacon thought this was not suf
fIcient as the amount of stock of
the corporations could often be in
creased by mere resolution of "A board
of directors
Severely crIticising the corporation
.sI, Senator Clapp called attention to
the president S message, in which be
said savings banks and building and
loans associations should be excepted
/ from the provisions of such Il measure
The publicity feature Of the corpora
tion tax measure, he said, provided on
| ly for honest returns for the purpose
of taxation, II was not framed, he
said, to bring about hny secret agree
ments that might exist between corpora
tions. and was. in fact. a mere myth,
, Denouncing the corporation tax as Il
plan to shift the burden of taxation OH
consumers, Mr.. Clapp predicted it's
enrly repeal when the people come TO
understand its real meaning.