Evening bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1895-1912, 1909-07-01
TAf1'S Plan FOR
Income TAX
First Republican Pres.
To Definitely Urge
This Tax
FULL TEXT OF MESSAGE;
HIS CORPORATION TAX
Brief and Pointed Review Of Status
Of Present Income Tax Law
Revenue from Dividend
Tax. a..


Washington, June 15.-Urging a Q
per cent tax on the net income of cor.
porations and the adoption of an
amendment to the Constitution pro.
viding an income tax without an ap.
portionment among the several states,
President Taft today sent to Congress
message embodying his views on
the subject.
The President speaks of the ap.
parent inability of Congress to agree
to an inheritance tax. and, as regards
an income tax, he refers to the deci.
sion of the Supreme Court in the case
Of Pollok vs.. the Farmers Loan and
Trust Company, In which the Court
held the tax to be unconstitutional,
unless apportioned according to pop
ulation. 1T is" says the President,
undoubtedly power which the Gov.
eminent ought to have. II might be
Indispensable to the Nations life in a
great crisis"
An amendment to the tariff bill
which Is suggested provides for the
imposition on all corporations and
Joint stock companies for profit. ex.
cept national banks otherwise taxed) .
savings banks and building and loan
associations of an excise tax OF 2 per
cent on the net income of said corpora.
tiOns,
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 transacted.
The message was brought into the
Senate while Senator Burton was
speaking. Senator Root being in the
chair ordered the reading of the docu.
ment as soon as the Ohio Senator
ceased speaking.
When the purpOrt of the measure
was made known. both Republicans
and Democrats remained I'm their seots
ana all listened attentively. Senator
Gore moved to refer II to the Commit.
lee on Finance, with instructions to
report by next Friday a resolution for
an income tax in accordance with the
PRESIDENTS recommendation A motion
ny Senator Aldrich to lay Cores mo.
ZION on the table was carried, 81 to %
a strict party vote.
Text Of the Message.
Ihe message Is as follows:
10 the Senate and House of Rep.
resehtatiNes-lt Is the constitutional
duty or the President from time TO
lime 10 present to the consideration of
congress such measures as he shall
Judge necessary and eXpedient. I'm my
inaugural address, Immediately pre.
cedins this present extraordinary SEES.
SION OF Congress, ! invited attention
10 the necessity for revision of the
tarlf at this session. aud stated the
principles upon which th,nght the re-
vision should be effected. | referred
10 the then rapidly increasing deficit.
ana pointed out the obligation ON the
part oi reformers of the tariff bill 10
arrange the duty so as to secure an
"uequa'e income. and suggested that
u IL was not p'Ssible TO do so by i'm.
port duties now kinds of taxation must
ne adopted, and among them recon-.
ihehded graduated inheritance tax
az correct In principe and as certain
ana easy of collection,
senate Proves lntractlble.
The House of Representatives has
adopted the suggestion and has pro.
Vlded In the bill 1t PISSED for the col.
iec'ioh OF such tax. In the Senate
the action of its finance Committee
ana the course of the debate indicate
'hat IL may not agree to this provision
ana u Is now prop0sed to make IN the
dehcit by the imposition of general
income tax In form and substance of
almost exactly the same charnc er as.
mat yhich In the case Of Pollock w.
Farmers l.oan and Trust C.ompouy
'lo' U. $. 42O was held by the su.
pr'me Court to be u direct tax pnI
therefore not within the power of the
hederal Government to impose unless
among The several states
according to population. This new
proposal, which did not discuss In