The Montgomery advertiser., 1909-06-30

lieve that 1t is not only in conflict with the Pollock case, but believe that It has constitutional weakness pecu- liar to itself and that it's validity is much more doubtful than the validity of the amendment that we have of- fered."
 MT. Cummins suggested that the very existence of the protective tarir
 would make necessary some other
 means of raising revenue than that
 now followed. The people. he said.
 would not consent to the excessive du-
 ties that would be necessary to obtain
 all the revenue needed from imports.
 He said the objections that are urged
 against the income tax, when weighed
 with the objections that can properly
 be brought against any other form of
 taxation open to Congress. will be
 found to be trivial and ephemeral. If
 1t has been fairly established that we
 ought now or in the near future, to
 resort to some form of taxation not
 now employed, there can be little
 doubt that we should take incomes
 rather than any other kind of proper
 ty. whether tangible or intangible, as
 the object of our additional taxation" The Iowa Senator concluded that if
 the government depends upon its pres ent resources 1t will have a large de-
  regarded 1t as necessary to find some means for off-setting it by . new form of taxation which would be imposed upon the people best to bear 1t. Meets the objections. Mr. Cummins reviewed many decis- ions bearing upon the income tax. The amendment proposed by the Finance Committee, he said was subject to all the objections from a legal point of xrtou against fba In n- come tax proposed by him.
 Reviewing these objections. he said: "First---It IS tax on incomes and | the fact that 1t brings within its pro- visions the incomes of corporations only does not and cannot change it's character. The Spreckels case. which have already mentioned, gives no more
 support to the validity of this amend ment than to ours.
 "Second-It does not change the na- i ture of tax to bAStow upon 1t diff :, ferent name; and If a mere name were | important or influential, the tax pro- posed by our amendment could be i called an excise tax just as easily and | just as correctly as can that term be | applied to the tax proposed by the committee.
 "Third--The stroke of a pen will make the tax authorized by our
  ceive and enjoy a certain income, and | 1t will be as well described as the tax l which the committee insists upon when 1t is said that 1t Is laid upon the net incomes of corporations with re- | spect to the carrying on of their busi- ness."
 During MT. Cummins' comment on | the receipts and expenditures of the | government, MT. Aldrich declared that with additional revenue tc be provided | by the corporation tax. he would be | greatly surprised if there Is any je- | ficit next year. His estimates of ex- | penditures for the present gear when | the tariff bill was reported to the | Senate, he said. was about $9.000, 00C | too high and he had. he said. con l graduated himself that he had esti- | mated within $2,ooo,0oo of the annual receipts. The deficit for the present year, he added would be about s60,- ! O00,0o and not so great as formerly | estimated.
 | Again he declared that If the tariff 1 bill becomes law in its present form
 1t would next year produce an income l of $350. 100000.