Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1909-06-15
PLAN TO BLOCK
INCOME TAX
MEASURE
SENATE OPPONENTS SEE
CHANCE TO COMPROMISE
Proposition TO Submit Constit-
utionaI Amendment Granting
Congress Power to Levy
When Conditions Demand.


| tBy Morning Journal Special Lsassa wirsl
Washington. y. g. June Nv hen
the Income tax question comes before
the senate for vote next Friday the
plan of It's opponents backed by the
Influence OF President Tart 10 cir
cumvent the adoption Of such meas
ure viii hc fully outlined Already the
opponents express confidence in their
ability 10 substitute for the incom.
tax amendment 4 provision for 4 tax
on the net earnings of corporations
available for dividend purposes, cou-
pied with a provision for the submis-
sion to the legislatures OF the sew
eral states of constitutional amend
menl giving congress the power to lay
or collect direct taxes on Incomes
For several days It has been rec
ogni2ed by the opponents OF the IN
come tax question that the only way
they could make certain the defeat
loo the proposition would be 20 offer
something ia It's stead which would
be acceptable 10 the country 1t be-
came known that President Taft dis
agreed with the supporters Of tax
on incomes ANA would lend the nd-
ministratlon's influence to bring about
their defeat But the Income tax fac
ton. numbering all of the democratic
senator's ana a number of progressive
republicans, variously estimated at
from twelve to nineteen have been
keeping up bold front, refusing 20
be diverted from their purpose by tbs
suggestion OF different forms OF cor
poration tax
several progressive republicans, no.
tably Mossrs Brown Jones and
Bourne, have been called To the White
House and President TAFT has dis
cussed With them the question OF sub
mitting constitutional amendment 20
the states senator Aldrich was at
rae NAic House sgdn@ ind WIS M,
guest ot President TAFT at luncheon
They discussed this proposition at
great length and AIR Aldrlch agreed
with tlfc president that the corpora-
ton tax plan would he wise II is un-
dersiood that the president believes
the income tax question should not
again be submitted to the supreme
court, but at the same time he takes
the position, 1t Is said. that congress
ruNulQ NJ EiNfI ilt HNNtI " ltNN
taxes on incomes 1t Is his theory. ac-
cording to members of the senate.
who have talked with him that tho
power Of congress to levy such a tax
should be determined as soon as pos
sible, IN order that this method of
raialng revenues should be accessible
In time of war or other emergency.
IIarmonlzlng with the attitude of
the president, the provision for q tax
On undistrbuted net earnings Of cor
porntions If adopted. probably would
be limited to period of two years
rho idea back of the provision for q
ihori term tax is that sufficient reve-
nues would be produced In two years
10 wipe out the deficit In the treas
lry and put the government finances
m firm footing II Is argucd that
he law could he extended hy act uf
congress II necessary
Every effort viii be made by SEN
itors Borah Cunmins and Bailey and
heir followers among the progressive
'epuhlicans and democrats to get
lircct vote ia the senate uoXt Friday
n the income tax amendment The
Conference on that subject was at
ended by Messrs cummlns, Borah,
.aFollctte. Bailey and clay They
ought TO meet The changing scnti-
nont IN the senate by deciding to
mend the bailey -Cummins amend
ncnt to provide for tax on the un-
distributed earnings OF corporations
nd excluding from taxation dividends
Il corporations which are paid 10 In
ividuals This IS simply another form
n an income tax law.
1t Is impossible at the present time
% forecast the outcome of the vote or
everal votes that may be taken next
'riday.