The Detroit times. [volume] (Detroit, Mich.) 1903-1920, 1909-06-21
TAX BURDEN To
Be ON CONSUMER
House VIII Block dividend Assess
mentv and Tariff Provisions Will
Hit the Masses

WASHINGTON, d. Jane IA
The light is out In the pipes OF the I
people who thought there was a I
chance FOR tax on wealth In the /
tariff measure congress- is about -ie |
consummate Taft and Aidrich killed
the income tax amendment at a time
when IL might have become law,
and this Is the story of how the
trick" was turned
The income tax Is dead. there viii
be no inheritance tax, the house Will
be hostile TO Taft's proposed dividend
tax" and there you are. l quote a very
distinguished senator: There Will be
mo tax on wealth-the burden Is all
n upon the consuming public and IL IS
the most infamous piece OF political
trickery OF a decade"
Two or three days before Taft
issued his "feeler" in regard TO a
dividend tax he had been seen by
Aldrich, who was excited ana
scared Aldrich informed the prcsi-
dent that there was a majority OF
three in favor OF the income tax
amendment and that unless some
thing was done the amendment would
pass. Aldrich called upon Taft 10
help him out OF the hole. The pres
ident responded Whether the idea
was his is not disclosed. but shortly
after Aldrich had blown out of the
White House the dividend tax scheme
was sprung on the public.
pess,y Work Done.
Before .Taft's special message rec
ommending tax on corporation in
comes had been sent 10 congress the
deadly work had been done. II had
broken the forces in favor Of an III
come tax. 1t had pulled away Bourne.
Jones, OF Washington; Brown, of Ne
braska; Sutherland and Nelson.
This meant that the Cummins-B Bailey
Borah- income tax amendments could
not possibly pass.
The house bill contained a pro
vision for an inheritance tax. That
was left out OF the senate bill by
Aldrich's committee.
Senators like Cummins, Borah. La
Toilette and Bailey all agree that The
action OF President Taft in sending
his recommendation in special
message was distinctly hostile. have
talked to them and they are OF no
uncertain mind. The Republicans arc
not anxious to rush into print with
criticisms OF the White House, but
they are frank enough in their ordi-
nary speech.
IT have no objection 10 voting for
a constitutional amendment now cri
any time, making an income tax be-
yond any legal question: said Senator
Borah. "But | want 1t 10 be under
stood that a constitutional amend
A.. q
income tax proposition
Tax Burden Shifted.
On the subject Of the effect Of the
proposed corporation tax, BOrah was
ottsp0ken 1T is only another way
to~shfft the burden OF the tax 20 the
consumer and the producer at the
bottom" said he. IF q mans in
come is $4,000 and the law tells him
he must pay per cent on that n
come TO the government, there IS
no. way for him To shift that tax
But IL il Is a corporation that has an
INCOME o: $4,000, and the govern
ment cones along and puts per
cent tax on those earnings, the cor
poration turns around and adds the
tax to the price OF the goods it sells,
or takes enough from the wages OF
it's men TO make up the difference"
Many friends OF a genuine income
tag believe that President Taft has
made very serious blunder. One
Republican. said;
"Mr Taft is on record as favcring
a stralght-out income tax. He has
said in speeches and Official messages
that he considered il unnecessary to
amend the constitution in order 10
have n perfectlv. sound and legal In.
come tax And now. as soon as there
is danger that an income tax law is
TO pass the senate, Mr.. Taft rushcs
in with n message asking for a con-
stitutional amendment, and for q cor
poration tax in place Of an income
tax. How in the world is he to recon
ellie HIS present conduct with his past
declarations"