The Montgomery advertiser. [volume] (Montgomery, Ala.) 1885-1982, 1909-06-17
|TAFT'S VIEWS
ON INCOME TAX
Sends Special Message
to Congress.
HE RECOMMENDS LEGISLATION
He Would Tax Net Earnings Of
Corporations.
The President Would Also Amend Com
stitution, Providing For Imposition
OF Income Tax without Ap-
portionment Among states.
HE RECOMMENDS LEGISLATION

ton OF an amendment to the Consti
tuition, providing for the imposition o
an income tax without an apportion
ment among the several States. Presi
dent Taft today sent to Congress {
message embodying his views on, thu
subject.
This action followed a protractet
special meeting Of the cabinet.
In his message the President speak,
| on the apparent inability OF Congress.
to argee to an Inheritance tax and al
| regards an income tax. he refers Il
the decision of the Supreme Court IL
the case OF Pollock VS.. the Farmers
court held the tax to be unconstitu'
tional unless apportioned according Il
population.
at Is" says the President. sun.
doubleday a power which the governs
/ mcnt ought to have. II might be In
dispepsabie to the nations life IN
| great crises"
The amendment, therefore. he de.
clares, was the only proper course
Such an amendment to the constitu-
tfon. he contended, was preferable to
the one proposed of reviving q law
| judicially declared TO be unconstitu-
| tional.
The amendment which he proposes
should be made to the tariff bill pro-
vides for the imposition upon all corr
porations and joint stock companies for
profit, except national banks (other-
wise taxed) savings banks and build
tax Of two per cent. on the net income
of said corporations. This, u - es-
timated by him, win bring an annual
revenue Of $4,000. 200.
"This IL a tax on privilege ana not
on property" he says. "snd Is within
the Federal power without apportion-
ment according to popuiaticn."
The Presidents points out that anoth-
er merit 10 the tax on corporations IL
the Federal supervision. which VIII
give to the koveFnnaeuG the stock hold
ers and the public knowledge OF the
real business transactions and the
gains and profits of every corporation
IN the country The adoption Of the
amendment. he says. viii make q long
step toward that supervisory controI
of corporations which may prevent q
further abuse OF power"
The Presidents message was
brought into the Senate about ] 80
o'clock while Senator Burton was max
ing a speech in opposition to a duty
on zinc ore. Senator Root. being IN
the chair, ordered the reading OF the
document as soon as the Ohio Senator
ceased speaking. Many Senators were
at luncheon in the restaurant ana Sem
ator Lodge caused the full Senate to
be called ia to hear the reading by
suggesting the absence of a quorum.
Listened Attentiveiy.
When the purport Of the message
was made known. both Republicans
and all listened attentiveiy TO the read
Ing. ~
Upon the completion OF the reading
OF the message, Senator Gore moved
10 refer II to the committee on finance,
with instructions 20 report by next
Friday a resolution for an income tax
in accordance with the Presidents
Aidrich to lay Mr.. Cores motion on the
table was, on an aye and no vote, car
r4ed by 81 to 25, strict party vote.
Mr.. Root, in the chair. had already
made the customary reference OF the
document to the committee on finance
end Mr.. Hepburn secured the floor and
began a speech on another subject. It
was then Mr.. Gore interrupted with
his motion. wrangle upon the par
liamentary right OF Mr.. Gore TO make
such a motion under the circumstances,
was solved by Mr.. Root, who sustain
ed the Oklahoma Senator.
In the discussion, Mr. Bailey said he
would not vote for the amendment as
offered and that he would Insist upon
a.. ETAQuGIGu income TAX W0en III came
co adopt the proposed resolution.
1--WE will give Senators on the other
side more than they bargain for in
this matter" he said significantly
Upon the carriage OF the Aldrich
motion to table the Gore motion the
chair announced that his original ref
srence of the message to the finance
committee would prevail.
Mr.. Hepburn was the only Senator
x1ha 70 he fa aR H.
dents concentrations. He declared
himself opposed to any proposition for
an income tax when he said the gov
eminent is abundantly supplied With
revenue for paying its expenses
1--WE are not called here TO get even
with somebody but to enact a revenue
law" he said.
president Taft is deeply Fratined
over the situation which called out his
message ana believes that the pros
poets for a revision Of the tariff down.
ward are brighter today than they ever
have been. 1t is the consensus of opin-
ion that Mr. Taft has been assured OF
material reductions during the consid-
GRAFTON of the House and Senate meas
ures in conference.
The President also feels that he
will be able to leave Washington for
the summer on the afternoon of Julv 4.
He is due at Norwich. Conn. july &.
and to participate In the Lake Cham.
plain ter-centenary celebration july q.
I, and s. He will be at Burlington
VT, July s and hopes to go from there
to Beverly He went out to the links
of the Chevy Chase Club this afternoon
for a game OF golf. The President now
plays about three times q week
The following Is the President'a
message:
The Presidents Message.
''Fo the Senate and House of Repre-
sentatives:
at is the constitutional duty Of the
President from time to time to recon-
mend to the consideration of Congress-.
such measures as he shall Judge neces-
sary and expedient. In my inaugural
address, Immediately preceding this
present extraordinary session Of Con-
gress invited attention to the neces-
sity for a revision of the tariff at this
session and stated the principles upon
which I thought the revision should be
effected. 1 referred to>the then rapid
Iy increasing deficit and pointed out
the obligation on the part of the franz
ers of the tariff bill to arrange the
duty 50 as to secure an adequate in
come and suggested that If It was not
possible TO do so By import duties. new