Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1909-09-22

enable us to meet the ~exigcneies.
"Of course It will be said by those
who are opposed to the income tax
that there viii be a disposition to i'm
pose a direct income tax merely rs a
means of collecting ordinary income
taxes in FORMAL times and that no dis
tlnction can be made in tho consti-
tuition hy which the power to levy
such a tax can be limited to times Of
emergency, because it is impossible
20 describe what the emergency should
be, | agree with that and ! agree that
there Is a probability that at times the
desire to tax accumulated wealth viii
lead to the movement in favor Of a
direct income tax. but | am also con-
iident that its inqulsitorial character
and the fact that in time the oppor-
tunity for perjury viii show IL to be
80 ineffective in reaching the persons
whom il is sought to reach, that Il
viii be wise To adopt the course with
such a tax and To follow the course
of our corporation tax rather than by
direct personal imposition except in
great emergencies.
~ Nv il'piit AhN dIIitliAillElll l'dF-
SEES, as | hope 1t may, we can then en-
large the corporation tax SC as to in
c(ude q proper burden on the bono
holders IN corporations as wen "a upon
the shareholders: and this win make
this instrument of taxation even more
equitable than II now Is.
Those who favor a directly per-
sonal income tax for the purpose Of
restraining great wealth will probably
find it ineffective for the reasons !
given.
Il have already considered in a
speech which | made in Columbus in
1907. how our great fortunes could be
divided without drastic confiscatorN
methods. II seems to me now as il ala
then. that tho proper authority 10 re-
duce the size of fortunes is the state
rather than the central government.
Let the state pass laws of inheritance
which shah require the division OF
great fortunes between the children of
the ~deCcndontS n shall not permit q
multi-miilionaire to leave his fartune
in trust so as 10 keep il in a mass.
much more drastic the ruiz,
against perpctuitics which obtain at
common law, and then impose "A
heavy and graduated inheritance tax
which shall enable the state to share
in the proceeds OF Such large
tccumulations of wealth which would
hardly have been brought about save
its protection and its aid. In
this way, gradually. but effectively.
he concentration Of wealth in one
or a few hands will be ncuteral-
.zed and the danger to the republic,
which has been anticipated by a con
mutation through generations of such
formulating fortunes will be obVi-
tted Tho use of the income tax it.
self for this purpose will, ! think.
lever be very successful because of
he defect already indicatcd-the diff
icultV OF finding the income upon =,
which to impose the tax and the OPP -
.lortunity that perjury will offer to cs-
ape ii. An inheritance tax cannot be
nus escaped because when a man dies
lis property must come before some ~
for consideration and adjudica-
on with a view To its legal transmits u
ion, and therefore those who are To y
uccecd, however. reluctant. must al
Il Il Tli'h ihS 81 Ilinl " lltil vic
~ecrcased left in order that they may y
cquirc valid title to the succession \
1T SENS, therefore. that the pres
mt congress has taken the wiscst ,
curse in adopting as much OF the
azure of an income tax as conforms
, the constitution and by recon- u.
reading an amendment to tho consti- -,
Ition which shall enable us to round ~
ut and perfect this corporation taN
4, as To make IL more equitable and So w.
to make IL "a Instrument of super
OF corporate wealth by federal ".
lthority. doubt not hat the in
'rmation thus obtained may bc made
basis for further legislation of al,
.sulative character. applicable only 49,
the conservation of the resources. ~
so largely Of an interstate character
to Justify greater restrictions and
ore direct supervision
Mr.. TAFT Wds Joined here today by
- secretary OF the interior. Mr. Bal
igcr. who will accompany him on 40
ut of the trip through the TAR north IN,
est. II is likely that the president IN,
sired "A further conference with Mr. ~,
tllnger whose conduct OF the in ~
rior department b" recently upheld raj
a long letter called out by the
illinger-Pinchot controversy b%cfore
aking a final exposition of the aims IT
~ objects nf this administration as RI
The conversation of the r%esourcrs ri
rs. TAFT probably will not take up III