The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1909-04-22
'owa's Junior Senator Presents His In.
come Tax Provision and Dis.
cusses it at Some
Lengths.
Explains Why Measure Would Aid In
Increasing Revenue-says He
is After Justice and
Not Corporations.

elal progress was made by the senate
IN consideration of the tariff bill YES
terday. No senator being prepared to
speak on the bill as a whole. the read
ing OF the measure by paragraphs was
begun Various items in the chemical
schedule were passed over for future
consideration. The reading was fire.
quently interrupted by tie discussion
of amendments, and only eighteen
pages of the bill were disposed of.
Cummins presented his income tax
provision and discussed it at length
In presenting the resolution Cummins
said that If any tax were levied on
corporations it would be extremely
difficult to classify the corporations
to meet the requirements of the con-
stitution. He declared the graduated
income tax on corporations would
result in great corporations paying
the highest rate although their stock
might be largely held by men of small
means. In that way the result might
be to place the highest tax on men
of small incomes.
Such result" said Cummins, would
not only be unjust, but it would de-
stroy the essential principle that un-
derlies the income duty
| Cummins said he recognized his
amendment and challenged the opin
ion of the supreme court of the Uni
\ toI Low, re ;,, 30
spect to the constitutional require
men regarding direct taxation, and he
1 believed it would be impossible tC
frame an income tax law that would
not antagonize that opinion.
IT." he added. that opinion is te
stand in its full scope, then the Uni
4 ted States must abandon for all time
or until the constitution is amended
the exercise of power and authority
which has been recognized for one
hundred years before the opinion was
announced"
THAT decision ne said, restricts
federal authority, and we should not
permit time to pass without @gair
asking the examination of this vita
power of the government"
He declared such restrictions oi
| power of taxatons of the government
would prove disastrous in time Of
war.
He denied the proposition to taa
incomes was democratic doctrine
but he was willing to accept whole
some, sound art just principles, nc
matter what its origin may be.
Calling attention to Cummins' fail
ure to tax incomes of corporations IL
his proposed amendment, Raynor de
clared: I'VE are after corporations
principally and l think you should be
too.''
'I am after justice and l am no
after corporations, retorted Cum
Minis.
Cummins contended t1at every taa
levied is in sense inquisitorial, bu
that the income tax was no more sc
than any other.
/ Smith, of Michigan, said the pro
posed amendment would not reacf
the incomes of Amer residents
abroad unless the tax was placed upor
corporations. Rayner took the SAFE
view.
'Supppose, he said. Carnegie, witt
an income of $500,000 a year. derived
from the steel corporation, should be
/ living abroad; there would be no way
to collect the tax if he had no othel
property in the United States to p'
attached.
Il propose replied Cummins, ,tha
the corporations shall pay that tax
That is the purpose of my amend
ment."
Cummins, referring to newspape
criticisms, said he had been represent
ed as making an insidious attack upoi
+ the principle of protection by the rals
ing of revenue from an income TAX
.I desire" he said. ito disclalm an
such intention. There is no senate
claiming allegiance to the repuohcal
party whose fealty to the doctrine .
protection is greater than my OWL
understand that ] came into the sen
ate with some suspicion respectih'
my views upon the policy of protec
ton. admit that if am 10 %
measured by the tests imposed by tn'
American Protection League then
n,,, 10 found to he unsound But il