The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1909-07-11
FIXING UP THE CORPORATION
TAX MEASURE.

Leakings of information and mtima-
ton from behind the closed doors of the
tariff conference room make it plain in
a general way that the corporation tax
measure is to be either emaseulated or
killed if it shall be possible Such a
result world justify small regrets on
the part of people DESTROYS of getting
good legislation, if the Inheritance tax
should be left in the bill But in all
probability, the opposition to all spec
ial taxes VIII try to kill the corpora
ton tax, or render 1t practically worth
less, and then drop out the inheritance
tax. Such a course viii be most I'M
fortunate. The corporation tax is the
particular contribution Of President
Taft to this bill 1t has not made a
great hit with the country. 1t has
been widely charged that the corpora
ton tax is the camel's nose coming into
the tent, to crowd out the income tax.
If it shall ultimately have that effect,
it viii be utterly useless to make de
mails that such was the intention
From all the authorities comes the
assurance that the Clapp anac-,,ia.,,,irr
to the corporation tax is especially OBJ
iectionable, and that it is likely to 90
out. TIE Clapp amendment is one of
the things which have helped to make
the corporation tax sufficiently palat-
able to enable the country to swallow
IL at al; If it goes out, some new and
strong seasoning win be Immediately
necessary lest the measure stick in the
country's craw. Explanation has been
made that double taxation must be
avoided in the case OF holding company
relationships between corporations, lest
the measure be made unconstitutional
As to that, there are plenty of other
arguments against the constitutionality
Of the proposition, winch do not seem
to worry ats proponents, and they are
a good deal more serious tnan this one
of double taxation. The idea of legal
izing, by mdirection, the holding com
pany financial plan, is thoroughly oh
jeetionsble to most people, and should
be taken up with recognition that it is
dangerous.
The proposal to reduce the tax on
corporation net earnings from , to /
per cent is likewise being touted as one
Of the concessions the conferees will
make to conservative sentiment. En-
tirely without reference to the merits
Of TINS proposal, it must be observed
that the proposals an look toward filing
the corporation tax plan down TO some.
thing like an irredueibIe minimum
There is too much disposition to leave
nothing except the name Of It.
1t is important that in the next ten
days or two weeks Of conference. the
attention of the country shall not bs
unduly centered on a few spectacular
features of the bill, TO the exclusion
of the rest. There is a very real in.
terest in the hide, hosiery. lumber. and
corporation tax features; but it will be
a sad .oistake if the country allows
Itself 30 be hypnotizei into watching
two OF three things with such fixed
ness that it fails TO note what is be-
ing done to the thousands Of items
There are S47 amendments in confer
ence. The real way for the House L,
make its influence felt is for the indie
pendents and Democrats of that BODY
right now TO organize to reject the frs
conference report. They may not nee,
20 do it; but in an probability the,
viii. The House. weak and ineffective
and 3espised as it is. could do a grea
service To the country and to its owl
reputation if it would adopt such pro
gran and muster the votes TO carry
out. In a second conference. Their
would be more serious realization o
the necessity Of making some real con
SESSIONS.