The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1909-07-01
CORPORATION TAX STOP-GAP.

Senator Aldrich the boss of the
United States Senate. openly admits
that his advocacy of the corporation
tax is because he wishes to defeat the
income tax proposition. He rs not
in favor of corporation tax as such,
but prefers it TO tho income tax Scna-
tor Aldrich IS position in this is made
clearer from the explanation Of Sena-
tor La Toilette of Wisconsin. who
claims that sufficient number of
the Senators who were tied up 10 the
Aldrich propositions on the tariff sched-
ules, will leave him on the income tax
proposition Mr.. La Toilette says that
! I"enough votes are pledged to insure
| the passage of the income tax immedi
ateIy in the Senate, by five majority -
otherwise he possible, the anxiety of
| Mr. Aldrich TO switch off on something
else rather than face n square vote on
the income tax proposition. But why
Senator AldrIch should be so desperate
| " opposed TO an income tax does not
appear II is a sane tax, a Just tax,
IN every way an equitable tax. 1t is
worth while putting the proposition of
It's validity up again TO the Supreme
Court in the hope of more favorable
judgment at this time, inasmuch as but
four of the Justices, who in 1894 de
cided against the income tax, are now
on the bench The Eve new members
of the court would decide the qucs-
ton, and the probability is that they
would decide il on their own personal
opinions, rather than folow the old
decision as binding precedent, and the
idea that the question was settled,
fully adiudicated, and ought not TO he
reopcned.
With respect to the tax on corpora
tions, certain things are becoming
clearer as definite words of the Pres-
dent are better sensed Ii is not
merely in order TO get the per cent on
the net income of corporations that the
President desires this amendment
adopted II is Il flank movement,
through which, as the President said in |
his message TO Congress, ''by a per
fcctly legitimate and effective system |
Of taxation we are incidentally able to |
holders and the public of the knowl
edge Of the real business transactions
aGd the gains and profits Of every cor
poration in the country" And he
concludes that if this is done "we
have made long step toward that
supervisory control of corporations
which may prevent further abuse of
power -
The amendment. therefore, while os-
tcnsbly directed toward the taxation
of corporations. is meant TO give the
National Government power to super
wise and regulate the corporations; not
only corporations doing an interstate
business, but all corporations
IT is Justly argued that here is a fca,
-ure of such far-reachlng Importance
hat the mere matter of taxing cor
1orations is dwarfed beside il. 1t is
argued, and The Tribune mas
taken this position, thai the
Nation has no authority 10 interfere
with and supervise corporations, cX-
.cpt by first passing a National cor
,oration law under which corporations
in interstate commerce will
re required to take out National in
paying a Federal license
j lerefor. This principle. however, for
me supervision of all corporations um
Ter the claim of National power to tax,
5 one that really puts the whole 1
amendment in peril. 1t is very hard to
conceive the idea of the United States