Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1909-06-17
Declare Their Position Not Inconsist-
ent With Tafts Attitude.
EARNINGS TAX IS NOT ENOUGH
They Give Out Statement Defining
Their Views in Detail.
DEMOCRATS ARE UNDECIDED
Bornh, Bristow, CIBpP, Cummins and
La Toilette Hold Meeting and De-
eide to Garry On Fight On
Original Lines.

WASHINGTON, June 16.-Five prog
ressive republican senators. Messrs. Borah,
Blistow. Cummins, La Toilette and Clapp,
conferred tonight to determine what their
attitude is tc be in relation to the income
tax amendment to the tariff bill in the
face of President Taft's special message
to congress today, favoring the submission
Of the question to the states for consti-
tutonal amendment, and the enactment of
law taxing the net earnings of cor
porations
They decided that the presidents plan
is not inconsistent with their demands for
the adoption of an amendment taxing in
comes, and that both may be adopted in
harmony. They assume that the pres-
dents plan. endorsed by leading republ-
cans on the finance committee, is designed
to "chloroform," the income tax amend
ment, but nevertheless announce that they
will continue to fight for it's adoption.
In a brief statement prepared by Messrs.
Borah and Bristow the supporters of an
income tax amendment, say:
"The friends of the income tax feel 1t a
duty to continue to put forth every effort
to secure the adoption OF the measure
They WILL therefore urge the adoption of
the amendment. They also stand ready to
support a resolution providing for an
amendment to the constitution of the
United States While they believe that
the supreme court will sustain the law, yet
to provide against a possible contingency
that might result from an adverse decision
they gladly favor the propositions to amend
the constitution. They do not feel salts
fled with simply a corporation tax.
Corporation Tax 'Tmperfect."
"A tax upon the net income of corpora
tionse only will imperfectly reach the de-
sired result 1t will tax tens of thou
sands OF stockholders whose total incomes
are small and will exempt in large meas
ure tho immense personal incomes of the
country, The provision they favor treats
large incomes exactly alike whether re-
eeived by corporations or individuals and
whether arising from interest, dividends,
inheritances or otherwise. The plan which
they propose simply carries the presidents
views to their legitimate end, and is as
consonant with the decision of the su-
preme court as is the tax on corporate
incomes alCne There is no reason for
excmpting from this tax the vast incomes
of individuals like Carnegie, Rockefeller,
and others, a very large part of whose
fortunes do not consist of corporation
stocks.
1T is also well known that corporations
especially the larger ones can In most
instances shift the burden of the tax to
the public by imposing upon the people
increased charges and prices
''As to the publicity feature, there is no
substantial difference between the two
measures. In other words, there is the
same necessity for securing Information
and insuring publicity in the income tax
as in the corporation tax.
secure the passage of the income tax
amendment"
Expect Some More Help.
The small attendance at the conference
sympathy with tho income tax proposition
but is explained by the fact that the meet
ing was not called until after the presi-
dents message was received and many
senators had engagements which they could
not break. An effort will be made to-
morrow to get together again. Senator
Brown, author of the first resolution in
troduced to enable the states to pass upon
the question of amending the constitution
so as to empower congress to levy a tax
on incomes, was present tonight for about
ten minutes. II is declared that he is not
opposed to the adoption of the presidents
program and the income tax amendment
as we'll.
That the supporters OF a direct tax on