The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1909-06-30
CORPORATION TAX DEBATE.

(sOhFORA Jun ] Az OEBR K
Senator Cummins opened the debate
upon the presidents corporation tax
amendment, and his arguments cannot
be refuted. Amendments were Of
fered by the Iowa senator and Bailey
of Texas providing for a general in
come tax, to be paid by all persons,
co-partnerships and corporations with
annual net earnings in excess of $4,000. |
The plan of the president, Mr.. Aldrich.
Senator Root and Attorney General
Wickersham involves the taxation of
corporations only, but, as Senator
Cummins pointed out, it is an income
tax incorporating under another name
and would just as surely collide with
the decision of the supreme court as
the Bailey-Cummlns proposition. The
Iowa senator well said that the spe-
cial income tax not only contravenes
the most sacred principles Of our gov
ernmental compact, but also Overrides
the deepest convictions that civilized
man holds with respect to taxation"
The circumstances surrounding the
birth OF the administrations corpora
ton tax plan we've somewhat peculiar.
Nn the Democrats in the senate and
many of the Republicans were in favor
of a straight income tax, so drawn as
10 bring it within the decision of the
supreme court. 1t was feared by Mr..
Aldrich that the amendment would
carry Something must be done. A
conference was called at the White
house and a special message sent to
congress, one Of the features of which
betrayed the ignorance of the men who
drew it with the subject discussed
The New York Journal of Commerce,
Republican at all times and seasons,
tells the story as follows:
Taken entirely by itself, the present
muddle over taxation in the upper cham
Der calls for good deal of explanation
President Taft it was supposed had
steadfastly refused to interfere in political
matters in the senate, resting on MS oars
in dignified style and awaiting the time
10 exercise his constitutional power OF
VetOing or signing a tariff bill But as
soon as he sees the Aldrich clique in
trouble, he rushes into the arena and by
the use of executive prestige WOrsts their
progressive" opponents by urging con-
stitutonal amendment. This he does in
spite of his record during the campaign,
amendment for income tax, and in
spite of his repeated declarations to mem
bers of congress at the opening Of the
current session, when he asserted his
friendliness to the general income tax
idea. In casting about for argument to
support his new position he finds II nee
essary to abandon the older recommends
ton for an inheritance tax, and then he
falls into some serious plumbers about
facts in the endeaVOr to emplasiZs the
rnWisdOm Of referring the whole subject
a
States by immediate legislation. The in
eVitabie impression made upon the mind
OF the observer is that Mr.. Taft has tried,
but failed, to make the worse appear the
better reason, and that instead of adopt
ing any one of the numerous entirely
practicable courses open to him-includ-
ing that of the veto-he has allowed him
self to be used to save the face of Mr..
Aldrich and to protect him from an EN-
barrsssing defeat on the floor Of the SEN
ate. The situation cannot but recall the
former incident, already lapsng into OBJ
scurity. when Mr.. Taft at the opening of
the session, exerted all his newly &C
CURED power TO save the Cannon clique
from defeat in the lower chamber at the
time Of the rules" contest
OF course, IL is possible the president
intended to kill off the income tax
amendment, knowing in advance that
his own proposition would fail for any
one of several reasons. This is not an
honest and upright way of legislating
for the people, but it is in perfect keep
ing with the tactics employed by Al
drich and his ''msnikins," as the Chi
cago Tribune calls them. Senator Root
is coming forward as the champion Of
the administration. Probably he is
more familiar with the subject than he
was when the presidents message was
written. for at that time he had not
read the decision Of the supreme court
in the income tax case or he failed to
grasp its meaning. His special plead
ings will be read with great interest, If
not amusement
The objections 10 the corporation tax
as proposed by Mr.. Taft are many and
varied. At first it was intended. and
so stated in the message, TO gain ac-
cess TO the books of corporations for
taxation purposes and at the same
time gather evidence 10 be used in pos
sibie criminal prosecutions. That fea-
ture of the plan has been abandoned i'm
the amendment now before the senate.
and corporations will be required TO
make such statements as those Of
railroads, which are now published to
the world. Even this would work great
hardship upon thousands of the
smaller corporations that face keen
competition and are not under sus-
picion of violating the law. Trade Sc
erets would be sure 70 leak out and the