Albuquerque citizen. [volume] (Albuquerque, N.M.) 1907-1909, 1909-06-16
10 TAX EARNINGS
OF CORPORATIONS
He Believes Maiority of People
Favor Income Tax and Pol
lock Decision Gives
Power for Ex.
else Tax.


Taft today sent to Congress the fol-
lowing message on the subject of tax
ing corporations ara an income tax
amendment:
"In my inaugural address | called
attention to the necessity for revision
Of the tariff at this session and stated
the principles upon which I thought
rveision should be effected. l re-
ferred to the increasing deficit and
pointed to the obligation of the franz
ers of the tariff bill to arrange the
duty for an adequate income.
"The decision of the courts in the
income tax cases takes from the gov
ernment a power which it was sup
posed the government had. 1t is un-
doubtedly a power the government
ought to have.
II therefore recommend that both
houses of Congress. by a two-thirds
vote. propose an amendment to the
constitution. comforting the power to
ley an income tax upon the national
government. without apportionment
among the states according to popu-
iation. This is a much better course
than to enact the law once declared
unconstitutional
For Congress to suppose a court
will reverse itself and to enact legis-
lation on such an assumption will not
increase confidence in the stability of
the courts
"It is said the difficulty and delay
in getting the consent of three
fourths of the states will destroy all
chance of adopting this amendment.
While none can speak with certainty
on this point, ] believe the majority
of the people will favor vesting the
national government with power to
levy an income tax.
Tax Corporations.
"The decision in the Pollock case
left power in the national govern
ment to levy an excise tax, which ac-
complshes the same purpose as a
corporation income tax. I therefore
recommend an amendment to the
tarim bill imposing on all corpora
tious and joint stock companies for
profit Except certain banks other
wise taxed) an excise tax measured
by per cent of the net income of
such corporations. | am informed
that such a tax will bring a revenue
VI hoN ltSS IMAM S4orVVVguVO.
Taft declared in his message that
iuasmuch as the power to incorpor-
ate has resulted in great business ad-
vantage it has also caused abuses to
which the people objected He be-
leved, therefore, that the tax law
will give the people an insight into
business methods of the corporations
and thus a long stride is accomplish
ed. Il recommend, therefore," says
the message, the adoption of a joint
resolution by two-thirds vote of both
houses. proposing to the states an
amendment to the constitution
granting the right to levy an income
tax and an enactment as part of
the pending tariff measure an excise
tax on all corporations, measured by
per cent of their net income
Special Cabinet Meeting.
Washington, June 16.-President
Taft today held a special cabinet
meeting which was attended by SEN
ator Root II is inferred that the
meeting was called to obtain the
views of the cabinet as to the presi-
dents proposed message to Congress
today regarding d tax on the earn
ings of corporations
Committee to Meet.
Washington, june l6.-With the
understanding that President Taft's
message on the subject of taxing the
not earnings of corporations and am
ending the constitution so as to en-
power Congress to levy a tax on in
comes would be received by the SEN
ate today, senator Aldrich has called
a meeting of the finance committee
for tonight 70 consider both PROPOSE
tiOus.
There were a number of senator's
at the White House this morning in
conference with the president on the
corporation tax 1t is not expected
that the proposed amendment taxing
corporations will be submitted with
The presidents message, but that II
will be communicated directly to the
finance committee and will emana e