Vernon County censor. [volume] (Viroqua, Wis.) 1865-1955, 1909-06-23
TAX CORPORATIONS
ON NET INCOMES
PRESIDENT TAFT SUBMITS TO
CONGRESS SPECIAL MESSAGE
ON QUESTION.
LOUISIANA SENATOR OPPOSES
FREE ENTRANCE OF PHILIP
PINE SUGAR.

PINE SUGAR.
Washington, June 1.-THE message
OF President Taft recommending the
incorporation OF provision ia the
tariff bill for the taxation or the earn
ings of corporations and the 3doption
OF resolution looking to the amend
ment of the constitution so as to per.
init the levying OF an income tax
without interference from the courts
which was received by the senate
yesterday, was generally regarded by
senators as of such transcendant I'M
portance as to place in the shade all
questions pertaining strictly to seized
ules of the tariff bill The message
was received early in the afternoon
and after brief discussion as to the
method of proceeding was referred TO
the committee on finance
In his message, the president
speaks of the apparent inability of
| congress to agree to am inheritance
tax, and as regards an income tax he
refers to the decision of the supreme
court In the case of Pollock VS.. the
Farmers Loan & Trust company. in
which the court held the tax to be
unconstitutional unless apportioned
according to population. 1T u.s." says
the president, undoubtedly a power
which the government ought to have.
1t might be indispensable to the na.
TONS life in great crises"
The amendment, therefore, he de
clares, was the only proper course
Such an amendment to the constitu-
ton. he contended, was preferable to
| the one proposed of revivlng a law
judicially declared to be unconstlta-
tional.
Income Of S25,o0o, 900.
The amendment which he proposes
should be made to the tariff bill pro-
vides for the imposition upon all cor
porations and joint stock companies
for profit, except national banks 10th
erwise taxed savings banks, and
/ building and loan associations of an
excise tax of per cent. of the net
income of said corporations. This, 4
is estimated by him, will bring an
annual revenue of S25,000,000. This
is tax on privilege and not ON pro.
perty," he says, "and is within the
federal power without apportionment
, according to population"
Merit of the Tax Plan.
The president points out that an
other merit to the tax on corporations
is the federal supervision which will
! give to the government, the stock
holders and the public knowledge of
the real business transactions and
the gains and profits of every corpor-
alton in the country. The adoption
of the amendment, he says, will make
long step toward that supervisory
control OF corporations which may
prevent a further abuse of power"
Senator Root occupied the chair
when one of the presidents secre-
taries appeared with message in
hand but owing to the fact that Mr.,
Burton was at the time making
| speech the presentation of the mes
| sage was delayed some time. When
Mr. Burton concluded. but not until
after Mr. Hepburn had addressed the
chair to proceed with the discussion
of the tariff bill, the message was
read There was a full senate pres
ent and the document was awarded
most careful attention from all sena-
| tors. Mr. Gore attempted to hav>
| the committee instructed to report OH
the income tax feature of the message
| by next Friday when under a gener-
al agreement. the income tax ques-
| ton Is again to be taken up for con
sideration His motion was, however,
voted down and for the first time in
many weeks the division was strictly
along party lines, all republicans vot-
| ing TO lay on the table. while all dem.
ocrats voted against that proposition,
| During the informal discussion Of
! Preference OF the message, Mr.. Bailey
gave notice that he would demand
that provision be made for the grad
uatiOn of any income tax that might
| be provided for and minated that
much time would be necessary TO get
through provision which did not
carry that qualification.
| After considerable consideration
the senate adopted the finance com
mittee recommendations regarding
the admission of Philippine products
but not until after two or three
amendments had been voted down
! Mr. Foster Of Louisiana occupied the
early hours of the day with a speech
opposing the tree admission of any
Philippine sugar into the United
States. He took the position that
with the encouragement that would
be given by allowing 100000 tons OF
Philippine products to come in free
the production Of the islands would be
50 rapidly increased that il would
soon exceed the quantity named
During the afternoon Mr. AldrIch
presented the finance committees
substitute for the house zinc schedule
and Z received the major portion OF
attention Of the senate during the aft
ernoon The committee amendment
provided for a graduated scale o. duty
on zinc ore IN place Of the fixed rate
Of the house bill
Mr. Burton spoke against any duty
on ziuc orc while Nessrs TJnyhurn