The San Juan islander. [volume] (Friday Harbor, Wash.) 1898-1914, 1909-06-25
PRESIDENT RECOMMENDS
A CONSTITUTIONAL
AMENDMENT.
Wants Government Given Power
to Levy An Income Tax In Case
Such a Course Seems Advisable
Would Also Tax Corporation
Net Incomes.


he would do, sent to congress special
message on the subject of an amend
ment to the federal constitution per-
hitting the government to levy tax
on inc mes, and suggesting an amend
ment to the tariff bill providing for a
2 per cent tax on the net incomes OF
all corporations.
President Taft's message follows
''To the Senate and House of Rep
resentatives:
''It is the constitutional duty OF
the president from time to time to
present to the consideration of Con-
gress such measures as he shall judge
necessary and expedient.
''In my inaugural address, immed-
lately preceding this present extraord-
mary session of Congress, invited
attention to the necessity for a revis-
ion of the tariff and stated the princi-
pies upon which thought the revision
should be effected.
For Inheritance Tax
IT referred to the then rapidly in
creasing deficit and pointed out the
obligation on the part of the reformers
of the tariff bill to arrange the duties
so far as to secure an adequate income
and suggestion that if it was not pos
sible to do so by import duties, new
kinds of taxation must be adopted, and
among them I recommended gradu-
ated inheritance tax as correct in prin-
ciple, and as certain and easy of collec-
ton
''The house of representatives has
adopted the suggestion and has pro-
vided in the bill passed for the collec-
ton of such tax. In the senate the
action of the finance committee and
the course of debate indicate that it
may not agree to this provision and
it is now proposed to make up the de-
felt by the imposition of q general in
come tax in form and substance of
almost the same character as that
which, in the case of Pollock VS.. Far
mers' Loan and Trust Company G57
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 appor-
tened among the several states accord
ing to population.
''This new proposal, which did
not discuss in my inaugural address or
my message to the opening of the
present session. makes it appropriate
for me to submit to congress certain
additional recommendations.
''The decision of the supreme court
in the income tax cases deprives the
national government of power,
which, by reason of previous decisions
of the court, it was generally supposed
the government had It is undoubted-
ly power the national government
ought to have. It might be indispen-
sable to the nation s life in great crises
Amendment Necessary
although I have not considered a
constitutional amendment as necessary
to the exercise of certain phases of this
power, a mature consideration has sat-
isfied me that an amendment is the
only proper course for it's establish
ment to it's full extent. I therefore
recommend to the congress that both
houses, by a two-thirds vote, shall
propose an amendment comforting the
power to levy an income tax upon the
national government without appor-
tiOnment among the states in proper
ton to population.
"This course is much to be preferred
to the one proposed, of enacting law
once judicially declared to be unconsti-
tutional. For congress to assume that
the court will reverse itself, and to
enact legislation on such assumption,
will not strengthen popular confidence
in the stability of judicial construction
Of the constitution. It is much wiser
policy to accept the constitution and
remedy the defect in due and regular
course.
"Again it is clear that by the enact
ment Of the proposed law, the conrgess
will not be bringing money into the
treasury to meet the present deficiency,
but by putting on the statute book a
law already there and never repealed,
will simply be suggesting to the ex-
ecutive officers of the government their
possible duty to invoke litigation.
If the court should maintain it's
former view, no tax would be collected
at all. If it should ultimately reverse
itself, still no taxes would have been
collected until after protracted delay.
ut is said the difficulty and delay in
securing the approval of three-fourths
of the states will destroy all chance of
adopting the amendment. OF course,
no one can speak with certainty upon
this point, but have become convinced
that great majority of this country
are in favor of vesting the national
government with power to levy an in
come tax
Second, the decision in the Pollock
case left the power in the national
government to levy an excise tax,
which accomplished the same purpose
as corporation income tax, and is
free from certain objections urged
against the proposed income tax mea-
sure.