Evening star., 1909-07-02
LIKE HOBSON'S CHOICE
Why the Senate Will Adopt the
Corporation Tax.
NOT MATTER OF JUDGMENT
Something That Everybody Is for
But Nobody Really Wants.
EITHER THAT OR INCOME TAX
prog ogressives" Look to Conference
Committee for Lower Tariff
Agreement.

Something that everybody is for and
nobody wants. This para aphrase of a re-
mark once used in another sense applies
to the corporation tax amendment which
will be adopted by the Senate. possibly
before the day is over. The spectacle is
being presented of the Senate, and ulti-
matey of the Congress. putting upon the
statute books tax which does not APP
peal to the judgment of the conservative
sta tesnen in either body
1t Is admitted that the tax is regarded
as harassing and veXatious to many lines
of business enterprise; that it will work
discrimination between different forms of
the same business: that it will produce
revenue in volume far beyond the necessi-
ties of the government and to an extent
which hardly any one can now approx
innate: that it will be cursed up hill and
down dale in many quarters.
Why. then, will it be adopted? Hob
sons choice; take that or the income tax
amendment straight. The corporation
tax can be repealed, and Senator Aldrich
prophesieS it will be repealed within two
years. The income tax once on the stat
ute books would be harder to get off
and indeed might become a permanent
feature of the revenue system of the gov
ernment.
Senators who have talked with Pres-
dent Taft since his return to the city
are convinced that he is in earnest in his
demand for the tax. and that he will hold
the House and Senate leaders to their
promise to enact it in good faith 1t is
said that. however much the desire to
luEgle the tax in conference and SubSti-
tute something else for it or pass it over
until next session of Congress for con-
sderation, such action cannot be taken AS
long as President Taft interposes his OBJ
lection.
One Point of Agreement
1t is realized by the lawmakers on the
hill that one effect of the adoption of the
tax will be effectualy to put an end to
the mooted question of sufficient revenue
to be raised by the bill. The tariff sched-
ules can be considered from now on solely
upon their merits and be judged entirely
upon the basis of whether they constitute
revision downward or not
This viii serve to focus attention upon
the actual rates imposed by the new bin
and to revive discussion of the question
of downward revision. President Taft'S
remarks at Yale last Wednesday are
taken to serve notice that he will insist
upon the bill bringing absolute downward
reduction, that is to say, that in the
main the rates shall be lower than those
of existing law.
The work of the conference committee
will. therefore, be followed with the ut
most interest, and the program con-
templates frequent conferences between
the President and members of that COM
mittee. it is assumed that he will keep
the pressure on constantly. Legislators
have not deuded themselves into think
ing that the Presidents policy of "handS
off, during the preparation of the bill
thus far goes to the extent of indiffer
ence on his part to the ultimate form of
the bill nor to mean easy-going acquleS-
cence in the final agreement in case it
should not conform to his understanding
of revision downward.
The high protectionists know that their
troubles are yet ahead of them and they
realize fully that they will have TO fight
for every high rate they propose. BY the
same token progressive republicans who
have been fighting for lower rates are
confident that the help they have clamor-
ed for, from the executive Will De forth
coming in the last and vital struggle over
the bill They only concern themselves
with seeing that their lines are kept in
tact. so that they can back up the Presi-
dent with votes in the Senate and House
when the confcrees report.
..Progressives' Last Hope.
The progressives feel that they have
made a gallant fight. Althoush from the
outset they have realized that they con-
fronted the solid majority against them,
built up. by Senator Aldrich's trafficking
with protectionst democrats, they have
never Laid down in their fight,
but have forced the record votes even
when they knew in advance they We're
bound To lose.
They are now confident they will have
their innings with the conference commit
tee and will return 10 their constituents
with tangible evidences of having made
some headway aea!nsi The high protec-
tionistS-
After. the corporation tax is disposed
of the Senate will proceed to the admin
istratiye features of the bill, the pro-
vision for the establishment of a crv-
toms court being next 10 be taken up.