The Washington times., 1909-06-13
Aldrich's Efforts to Block
Amendment Fail-Vote
Comes Friday.
WHOLE THING NOW
WITH DEMOCRATS.
But Little Headway Made in Sen
ate as to Dividend
Levy.

That an income tax amendment TO the
pending tariff bill viii be forced when
the vote is taken in the Senate next
Friday. Jtne IS, now appears certain.
Unless the situation changes material
" between now and the time OF voting.
ehe income tax adherents will win out.
The strenuous efforts which Senator
Aldrich and. his supporters have been
putting forward TO XII of this propo-
sition have thus far been ineffective
Instead Of losing strength it has been
gaining.
IN trying TO buck against an income
tax amendment, the Senate leaders have
have found it backed by powerful
public sentiment without regard 10
party, and their various plans to side
track it have failed. This has been the
case despite the fact that President
Taft. while not opposed 60 an income
tax. on principle. has taken the position
that it would be better 10 let il so over
at this time. The President himself pre-
fers a tax on the dividends Of corpora
tons, which, in its last analysis, OF
course, is form OF income tax
Leaders Anxious.
senator Aldrich ana his Heutenants
are anxious oveF-the situation and fully
realize that 1t has got away from them.
Hetween now and the time for a vote,
they may be able to corral enough votes
10 turn the tide. The tax adherents say,
Of course. this cannot be done and that
the amendment is going through.
The parliamentary situation has been
much cleared sap and improved for the
supporters BIZ the amalgamation Of the
C7ffnuains and Bailey amendments into
Hfeh F--aNtfnz for 4 straight 7
cent tax on the incomes of individuals
AMI corporations above 5000.
The Senate has ninety-one- members,
IoTimer OF Illinois not vet having been
sSern In Forty-seven votes. II the fun
membership Is present, will pass the
Measure. The Democrats Number thirty
two. Senator Bailey processes the be-
lief that he WIN get the full minority
stnength for the amendment If all the
Democrats support It. fifteen Republic |
can votes will be needed TO pass IL. I
Senator Cummins has given il out that
nineteen Republican Senators are for
tRs tax as the situation stands now.
On this basis, tire supporters could lose
some strength snd stil be able 10 pull
through.
Rests With Democrats.
II the Republicans hold their strength
or nearly ali OF IT. it viii rest with the
Democrats whether the amendment
passes. Senator McEnery OF Louisiana
ts-one of the Democrats about whom
there Is some uncertainty. Another is
zpSenator Foster. Both these Louisiana
Senafors have at different times desert
p the Democratic side and the down
xard revlsionists and have gone to Aid
rich's support. What course they viii
AXE on the income tax remains 10 be
seen
NIt win be 3 hard blow at the Demo
rFatic party IL the amendment falls BY
reason Of Demoeratic- OBJECTIONS. The
fainority viii seek TO make the amend |
4ent a great issue before the country /
= Congress fails TO pass II. But If the
Democrats themselves split on this
aHestiOn and defeat can be laid up 10
their notes.-the value OF any such issue
-senator Raynsr Of MARYLAND Is not
sated as an income tax enthusiast, but
be is exos; 81 70 support it.
But Little Headway.
The proposed tax on the dividends or
net earnings Of corporations has made
little headway ia the Senate. The in
ecmo tax supporters say that 1t Is less
nleritOriOus than what they want. FOR
The reason that II would impose a tax
On the small stakeholder who owns enc
share and the large one who owns
r0oe alike n other words, Il would
impose taxes without reference J0 the
ability TO pay. They also say that the
advocacy Of the tax On dividends rec
osnizes she need for additional taxation
and consequently strengthens the cause
g the income tax and thai 1t IS graded |
according 10 The ability of people TO
pay. whereas the tax on the dividends
Is not
Moreover. theirs are some signs that the /
Senate leaders have buck fever on the
proposed dividend tax This is because
the President has plan Tor coupling
with II plans for the regulation OF cor
poraGiOnE which would be far-reaching
To use such tax 70 defeat the income I
amendment and Fhen get out OF II not
only tax on dividends out the regula-
ton Of corporations, publicity OF cor
pOrations, uniformity ia the system OF
accounting Of corporations. and other
forms OF regulation would not meet the
approval OF many Senators who would /
be perfectly willing to use the tax on
dividends 10 defeat the income matter
ans have il IN somehow result ia the
failure 81 all legislation for additional
taxation, and Tor duties levied on other
than consumption.
The real source of the opposition in
the Senate 10 the income or 10 any other
form W1ich is not based on consumption
Is The fear OF the effect IL viii have on
the protective tariff system. Ii is per-
cetved by Senator AIdrieh and the high
tarin Senators that with the income tax {
Established as part OF the Govern /
SCENTS system Of raising funds the day
~ exorbitant tariff rates would he /
P4ssed, and something IKE revision on /
rnedes 2te and Just lines would be com /
PEELED.
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