The Birmingham age-herald., 1909-09-22
Corporation Tax Is Discussed
 At Some Length
PLEA FOR THE INCOME TAX
President Strongly Urges All the States To Adopt the Proposed Income Tax For Use of Ma
 ton in It's Need.

Denver, September 21.-Making his way still further to the west, President Taft arrived in Denver this afternoon and tonight in the Denver auditorium, where year ago MT. Bryan was nominated as his opponent in the presidential race, faced crowd of thousands that in It's noisy welcome and continuing enthusiasm recalled some of the scenes of the con vention week.
 President Taft, switching from his purpose to discuss the question of the conservation of natural resources in his Denver speech, elected tonight to take up the corporation tax passed as a part of the Payne tariff and to defend it as against the proposition to impose a di- rect income tax. which he acknowledged seemed likely to pass the Senate when the corporation tax was devised as a compromise
 The President strongly urged that all the states should adopt the proposed amendment to the constitution, however to make an income tax possible in time of need.
 MT. Taft was joined here today by the secretary of the interior, Richard A. Ballinger, who will accompant him on a part of the trip through the far north west. It Is likely that the President de- sired further conference with Mir Ral- finger, whose conduct of the interior de- partment he recently upheld in long letter called out by the Ballinser- Pinchot controversy, before making final ex- position of the aims and objects of this administration as to the conservation of the resources. MT Taft prons bly will not take up the subject until he reaches Salt Lake City, where he spends Fri day and Saturday or he may wait un- til he arrives at Spokane, where at the irrigation congress, the Balinger- Pinchot controversy really had it's first public air ing.
 Best Form of Tax.
 The President tonight declared that the corporation tax was in itself the best form of income tax that could be levied and points out that it contained many of the best features of the income tax law of England. In urging that the states should vote for the amendment to the constitution permitting the levy of a di- rect income tax without apportioning the proceeds among the states according to their population, the President declaring that it would be possible to SO amend the corporation tax as to include within its scope every desired feature of an in- come tax except the levy upon incomes derived from actual salary and profess sional services.
 The President said he opposed a di- rect income tax except in cases of emer- gency and he believed 1t to be a prime fault In the federal constitution that no provision is made for a direct levy to meet war time or other extraordinary ex- penditures.
 MT. Taft declared that it was the su- preme court decision declaring uncon- stitutional the income tax law passed by democratic Congress some years ago that prevents the leaders in Con- gress during the session recently closed from including in the corporation taY measure a provision for levy on bonds and bondh olders. To tax bonds would result in the reduction of the rate of inter est and hence. this resulted in direct tax upon the individual olders of the bonds and came in conflict with the decision of the court that no Sf- rect tax could be levied by the national government without the resulting ap- portionment of the proceeds among the states.
 Results in England.
 The President based his arguments in favor of the corporation, tax as | compared to the direct income tax, al- | most entirely upon the results of the | income tax in England.
 He points out hat the tax, there is l not direct levy such as was recently defeated in the Senate only through compromise, but that 1t laid the tax upon the income before it came into the hands of individuals. The Eng | fish tax Is levied first on the declared dividends of corporation; secondly, | on rents before leaving the hands of | the tenants. and thirdly, on ths indi- vidual directly. It was found In Eng land that a direct income tax at 10 per cent did not produce as mucr reve- que as the present method of taxation It per cent This he declared il- ostrated the premium that the direct .ax pigces upon perjury and conceal nent.
 It is a question, the President de- | ,lared. whether incomes from earned salaries. and from professional work, 'hould be taxed as heavily as incomes derived from investments or not taxed tt all.
 Tie latter he said, was the effect | # the corporation tax.
 Speech on Tariff.
 At the auditorium tonight, after ew preliminary remarks. Ntr. Taft ouched briefly on the tariff. saying hat while a revision had been deemed ssential, there was also a def ,lt m h treasury to be met. This partly vill be met by a cut of $40000.G93 to 50, 900, ,000 in the appropriations to be made by Congress, and partly by the Income from the new corporation tax aw nr. Taft said he had favored t first an inheritance tax, but the cb- ection that the state had pre-empted |
 (C0NTNUED ON PAGn s)