Evening star., 1909-05-04
Borah Claims Income Tax to
Be Constitutional.
SAYS 1T is NOT DIRECT
Would Send Matter to Supreme Court
Again.
BAILEY LISTENS APPRovINGLY
Texas Senator Lends His Aid in
Pushing Argument-Sutherland
Questions Repeatedly.

00SotAOAS ASSPSoNSNAy'
Going away back to the old English
law and considering in detail the debates
and circumstances of the American con-
stitutional convention, Senator Borah of
Idaho attempted today to sustain his
contention in the Senate that a federal
income tax is entirely constitutional His
argument turned upon the proposition
that such a tax is not direct tax"
within the understanding of the trainers
Of the Constitution and Of the Supreme
Court for a hundred years. Not being a
direct tax" it would not have to be
apportioned. which is admitted to be
wholly impracticable.
Mr. Borah continued the address in fa-
vor of an income tax amendment to the
Payne tariff bill which he began yester-
day afternoon. He spoke almost entirely
of the legal phase of the question.
Everything he said on this point agreed
with the argument submitted by Senator
Bailey of Texas in two-day speech a
few days ago. Mr. Bailey listened atten-
lively to Mr. Borah and from time to
time aided him in driving home his
points.
Questioned by Sutherland.
Senator Sutherland Of Utah interrupted
Mr.. Borah frequently to ask questions in
an effort to discredit his line of argument.
but every time the Idaho lawyer had a
ready answer. After Mr.. Borah had laid
down his opinion that direct tax was
the only one that could be equitably ap-
portioned and that it included tax on
real estate and its improvements and a
capitation tax, Mr.. Sutherland asked about
tax on "all buildings over twelve sto-
rfn hfsb hat
would he a real estate improvement tax,
and yet could not be equitably appor-
toned among the various states, Mr..
Sutherland pointed out.
YES" said MIR. Borah, "but such a
tax Is wholly impossible from a prac-
tical standpoint
But suppose it should-then how
about it?"
Well" smiled Mr.. Borah, suppose
there was railway to the moon. OF
suppose there was one-then how
would the engine get there?"
Turns Laugh on Sutherland.
This turned the laugh on Mr.. Suth-
erland, and ended the discussion of
this phase of the subject.
Mr.. Borah closed by appealing for
the adoption of an income tax amend
ment. Notwithstanding the decision
of the Supreme Court in 1894 against
an income tax, he thought the ques-
ton should be again presented to it.
and that in doing so Congress would
not be showing disrespect to that great
tribunal.
Urges an Income Tax.
Declaring that extravagance has be-
come almost a national disease, Senator
Borah yesterday spoke for an income tax
- - laao u,
the Treasury. as we'll as awakening public
interest in national expenditures. He said
the tax which he proposed should be
used to build up a great navy and a
great army for the purpose of cowing
the nations of the earth, but that the
burden of taxation should be taken from
those who dig the earth and put upon the
purses Of those who would never miss it.
During the course Of his remarks, Mr..
Borah referred to former President Roose-
welt as having shaped the :destinies Of
the republican party, and said that with
out his leadership Ibis party would have
gone out of business" He added that
without continued adherence to those
principles the party will 60 out of power.
mo. man. he added. lis politically SO
short-sighted or politically so blind as
the man who thinks. the steamer Ham
burg carried away the policies, the princi-
lie conscience and the searching public
concern which this remarkable man be-
queathed to his countrymen."
This statement was in connection with
Mr.. Roseyelt's suggestion in favor of a
graduated inheritance and graduated in
come tax.
Mr. Borah also quoted Mr.. Taft's speech
In which he spoke in favor Of the princi-
pie of the income tax.
Does the senator believe" Mr.. Suther-
land asked. that President Taft believed
in the constitutionality of the income
tax lawn other words, that he believed
that the law pronounced, unconstitutional
By the Supreme Court was, in fact, con-
stitutional?"
II only know what he said to the Amer
lean people when he was a candidate for
the presidency" responded Mr.. Borah
that he was in favor of an income
tax which could be drawn to be made
constitutional. I am not willing to be-
lieve that the President believed in draw
ing an income tax law applicable to men
toiling in professions and the min ex-
empting the vast accumulated wealth OF
l'this nation from taxation"
II believe in an income tax" continued
Mr.. Borah, mot that we may impose the
whole burden of government upon the
rich or upon wealth, but that wealth may
bear its just proportion of that burden
which 1t does not do under system OF
taxation resting entirely upon consump-
upon consumption should be supplement-
ed with an income tax not alone for the
purpose of raising extra revenue. but for
distributing the burden of whatever reve-
nue. is necessary more equitably and more
In accordance with the ability to pay"
Equitable and Fair.
Contending that the income tax was
equitable and fair. not class legislation,
and not an attack upon wealth. but
simply a reasonable demand that the
burdens of government should be met in
due proportion by the great property in
terests and accumulated wealth, Mr.
Borah asserted that 1t was a tax which
gauges itself according to mans success
or failure. He said 1t reaches the income
of the professional man. who may now
escape almost entirely. Declaring that il
| was no more an incentive to perjury or
| fraud than the personal tax laws in the
various states, Mr.. Borah claimed that
| the income tax was no more inquisitoria
! than the system of national taxation OF
today. He referred to the recent SNUG
Cling cases In New York
| Il believe in it," continued Mr.. Borah
| strange as ii may seem to some. as
II