Evening star., 1909-06-09
PROPOSAL MADE BY TAFT
Advocates Of Revenue From Incomes
Refuse to Give Way.
PLAN MEETS WITH NO FAVOR
Two Factions Of Republican Party
to Confer-Party Policy Likely
to Be Adopted.

ZINE Senate was canvassed today to de-
termine what would be the fate of prop
ositlon to place a tax upon dividends of
corporations as substitute for an income
tax. 1t was developed that there is an
overwhelming sentiment in opposition to
such a plan.
Practically all those who opposed the
income tax idea are against the corpora
tion tax. Supporters of the income tax
refuse absolutely to be side-tracked from
the principle for which they are contend
ing
After a conference at the White House
yesterday between President Taft and
Senator Aldrich it was stated that the
finance committee would consent to plac-
ing per cent tax upon dividends of
corporations If the supporters of the in
come tax amendments would accept 1t
and withdraw their proposition. This sug-
gestion came from President Taft. and
was designed to prevent q split In the re-
publican party over the income tax fea-
ture.
Progressives Refuse to Yield.
Mr.. Aldrich communicated the plan to
Senators Cummins and Borah, leaders of
the progressive republicans who have ia
ment. These senators consulted with their
colleagues. AS a result the plan was re-
pudiated by them.
Mr.. Aldrich consulted also with repub-
lican leaders who are opposed to the in
come tax idea. He had no better success
with that faction than with the progress
ives.
By an order of the Senate the income
tax proposition will come up tomorrow
for vote. In view of the unsettled con-
dition a motion will be made to post
pone action. Indications are that practi-
cally all the republicans will support
postponement.
1t is expected that Senator Bailey will
protest vigorously against this delay.
Some general debate the income tax
amendment probably will result.
1t is not expected that Senator Aldrich
will move to refer the income tax amend
ment to the judiciary committee. but that
he will leave ii before the Senate SO that
further conference may be had between
the two factions of the republican men,
bers of the Senate.
Opposition to Inheritance Tax.
The canvass of the Senate in relation
to the corporation tax plan developed also
that there is decided opposition to the in
heritance tax feature adopted by the
House at the behest of President Taft
and stricken out OF the bill by the Sem
ate committee on finance.
The income tax advocates are encour-
aged by this showing. 1t was said today
that if President Taft desires to gain
their support he must lend his influence
to aid them In obtaining some agreement
by which the income tax feature shall be
brought to a vote.
In view of the short time that re-
mains before the date popularity fixed
in the public mind for adjournment of
the present session, some income tax
advocates are not inclined to insist
upon vote at the present session if
there can be, coupled with the molion
to refer the proposition to the judici-
ary committee. instructions that the
committee shall report to the Senate
early in the next regular session.
They will make an effort to incor-
porate instructions of that character
in any motion that is made to refer
the amendments to committee.
Party May Adopt Policy.
In the next few days number of
conferences will be held between the
two republican factions in the Senate.
between Senate leaders and House
leaders and between supporters and
opponents of the income tax amendment
and President Taft. The position taken
by the democrats in the Senate on the
subject of the income tax has con-
vinced republican leaders that some
party policy must be worked out of
the conglomeration of ideas on this
question.
So far as the pending tariff bill l.,
concerned any plan to tax the dfvi-
dendS of corporations might be hailed
as a democratic idea. for the reason
that Senator Daniel has pending an
amendment to do that very thing. His
amendment was introduced soon after
the bill was reported from committee.