New-York tribune., 1909-06-18
CORPORATION TAX PLAN
np4FT OF AMENDMENT
COMPLETED.
Framed by President and attorney
General Programme an
Senate.
From Tho Tribune Bureau.1


-,-,sbing+on. June 1.-THE President and the
...,rne, General completed to-day the draft of
=. nroposed amendment To the tariff bill i'm
-..ire a tax Of per cent on the net earnings
= soornorations Later in the day the Attorney
c.,sraI delivered the draft 10 Senator Aldrich
-. chairman u the Finance Committee The
r-s,a adjourned comparatively early. and the
-,,,,hlicar members Of the Finance Committee
,,er, two hours in considering the amendment.
there WAS some discussion Of the advisabihty OF
,,,cirr = minimum limitation in the bill. so
=. generations whose net earnings We're less
-, +ba stimulated amount would not be
,;ras 70 paw any tax. but no decision was
-s,csed and no such change viii he made unless
!. ,,mn,ends itself 70 the President and his legal
.,rissrs Members Of the Finance Committee
-,-s nnv-fIling 70 discuss the proposition after
.bsv adjourned. hut il was learned that the
.-,sndr,ent would not be introduced tomorrow.
1,e.sad Nf- AIdrich viii move that considera-
+ion of the Bailey -CummiDs amendment be de-
ssr-sd rntr the middle NJ next week when. be
hlteves. consideration Of the schedules in COM
-,i,tee Of the whole viii have been completed
The committee was somewhat amused TO dis
e,,-er that the President had made legal slip
q his message when ne said that the income tax
,sw which was a part Of the Wilson German
,,p had never been repealed and was already
m the statute books. Il has now been found
rb,t the law expired by limitation on January !.
1gnn and therefore Is not at present on the
statute books in The sense in which the Presi-
dent used the expression. II iS regarded as
rrobable shat the Democrats in the Senate will
undertake 10 minimize the force Of the Presi-
dents message by citing this slip.
Those who are usually well posted regarding
he course of events in the Senate predict that
will he added
tariff law without difficulty and without pro
lorres debate and that it will receive the almost
unanimous support Of both parties The consen-
SIS Of opinicn appears to Ga that the Presidents
recommendation viii actually hasten the enact
raent Of The tariff law Mr.. Taft is greatly IN
earnest in his advocacy OF the corporation tax,
and is urging all Senators To get into line with
the organization and vote for it
The Democrats held long caucus this after
zoon. a. which speeches were made by Senators
BAILEY. Money. Fletcher. Daniel and Shively.
The only statement they were willing 10 make
when They adjourned was that they purposed
70 work for the income tax as long as any hope
remained. It is known. however. that con
dsera be part Of the discussion was devoted TO
II effort 10 devise a method. first by which a
5fect vote on the income tax proposition can
4 obtsined: ana. second, 10y which the Demo
get some credit Tor tile TAX on llle net
earnings Of the corporations Senator Daniel
recalled the fact that early in the debate he
offered an amendment providing for a tax on
the gross earnings Of corporations. and he will
attempt 10 show that the Presidents proposition
IS merely modification Of his method of rails
ing revenue
NJ. Bailey indicated his determination TO oh
tain direct vote on his income tax amend
ment either in committee of the whole or in
the Senate. Some Of the Democrats are urging
Nr. Bailey 10 withdraw his amendment SO that
he can offer il later as a substitute for the
TAFT corporation TAX proposition. Even if the
Democrats do succeed in getting a direct vote
OF the income tax proposition. il viii not COM
1and more than t1irty-five votes. or eleven less
than ma jority