The Newark star and Newark advertiser. [volume] (Newark, N.J.) 1909-1909, 1909-06-16
Recommends in Message
. Per Cent. Toll on
Corporations.
SAYS GOVERNMENT OUGHT
TO HAVE MORE POWER
Points Way to Getting Revenue
Lost by Income Tax
Law Defeat.

WASHINGTON, June 16.-For more
than two hours today President Taft
consulted with the six lawyers Of his
cabinet regarding the message he sent
to Congress this afternoon on the sub
ject of a tax on the undistributed net
earnings of corporations and the prop
osition to submit to the States the
question of an amendment to the con-
stitution to make clear the right OF
the government to levy an income tax.
Present at the cabinet session were
Secretaries Knox, Macveagh, Dickin-
son, Ballinger and Nagel and Attorney
General Wickersham.
President Taft's last public utterance
upon the subject of the income tax was
made in his speech of acceptance at
Cincinnati last July. At that time he
said:
s.In my judgment an amendment to
the constitution for an income tax -
not necessary believe that an In
come tax, when the protective system
Of customs and the internal revenue
tax shall not furnish income enough
for governmental needs, can and should
be devised. which under the decisions
of the Supreme Court will conform 70
the Constitution
Preaident,s Message.
Tho text of The Presidents message
follows:
"To the Senate and House of
Representatives-It is the constitutional
d,1tv of the President from time to
time to recommend to the consideration
of Congress such mea sures as he shall
think necessary and expedient In my
inaugural address. Immediately pre-
ceding this present extraordinary ses-
sion of Congress, invited attention to
the necessity for a revision Of the tariff
at this session, and stated the prin-
ciples upon which Thought the re-
vision should be effected. referred TO
the then rapidly increasing deficit and
pointed out the obligation on the part
of the trainers of the tariff bill to ar
range the duty so as to secure an ade-
quate income and suggested that II 1t
was not possible to do SO by import
duties, new kinds of taxation must be
adopted. and among them recommend
ed a graduated Inheritance tax as cor
rect in principle and as certain and
easy of collection.
..The House of Representatives has
vided in the bill it passed for the col
lection of such a tax. In the Senate.
the action of it's finance committee and
the course of the debate indicate that
It may not agree to this provision and 1t
Is now proposed to make UP the deficit
bv the imposition of a, general income
tax in form and substance of almost ex-
actly the same character as that which
In the case of Pollock VS.. Farmers
Loan & Trust Company Q57 u. s. 429)
was held by the Supreme Court to be
direct tax and therefore not within
the power of the Federal government
to impose unless apportioned among
the several States according to popula-
ton.
Power Government Ought to Have.
sThe decision of the Supreme Court
in the income tax cases deprived the
national government of a power which,
by reason of previous decisions of the
court, it was generally supposed the
government had. 1t is undoubtedly a
power the national government ought
to have. 1t might be Indispensable to
the nations life in great crises. AL
'4.khough I have not considered constf-
tutional amendment as necessary to
the exercise of certain phases of this
mower. mature consideration has sat
isfied me that an amendment is the
only proper course for its establishment
70 its full extent. I therefore recon-
mend to the Congress that both Houses,
Nv a .two-thirds vote, shall propose nm
amendment to the constitution confer
ring the power to levy nm income tax
mon the national government without
.puortionment among the States in pro-
portion to population.
sIt is clear that by the enactment of
the, proposed law the Congress will not
be bringing money into the treasury to
meet the present deficiency, but by put
fling on the statute book a law already
there and never repealed will simply be
suggesting to the executive officers of
the government their possible duty to
invoke litigation.
..It is said the difficulty and delay in
securing the approval of three-fourtlis
OF the states will destroy all chance Of
adonting the amendment.
sr have become convinced that a srent
,,a5ority Of the people of this country
are In favor of vesting the national
government with power to levy an in
ro,,e tax ana that they will secure the
,doution of the amendment in the
states IL proposed to them.
"second. the decision in the Pollock
fcontinued ON Third Page.)