The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1909-06-17
FavOrs Tax on Net Earnings of
Corporations and Income
Tax Provision.
WOULD AMEND CONSTITUTION
TO AVOID ALL LITIGATION
Regarded of Such Importance
as to Place in Shade Other
Phases of Tariff.


age of President Taft TO the senate
oday recommending tho Incorporation
# provision in the tariff bill for the
aNatIon Of the earnings of corporations
md the adoption Of resolution look
Nc to an amendment Of the constitu-
ion to permit the levying Of an in
ome fax without interference from the
'ourts was regarded by senators as Of
,ucn importance as TO place DO the
hada all questions pertaining strictly
% The tariff schedules.
The message was received early in
he afternoon and referred TO the COM
nittCc on finance
Senator Root occupied .nc chair when
,he of the president S secretaries ap-
pcarcd Hith thc message, but it was
not presented until Senator Burton,
who was speaking, had concluded his
There was a full senate present and
he document was awarded the most
.arctul attention Senator Gore at
empied TO have the committee instruc
ed to report on the income tax feature
IF the message by next FRIDAY when.
under general agreement, The income
lax question is again TO be taken up
TO: consideration. His motion was,
however, voted down and for the first
Tine in many weeks the division was
strictly along party lines.
Bailey Serves Notice.
During the informal discussion Of 5he
reference of the message, Senator Bail
~ gave notice that he would demaud
hat the provision be made for a grad
uation or any income tax provision
l..l sgl Il ,trt, tod
hat much time would he Necessary TO
get through q provision which did no.
carry tha; qualification.
The senate adopted the finance com
nittce $ recommendations regarding
Inc admission of Philippine products,
but not until after two or three amend
rcnts had been voted for. Senator
Foster of Louisiana opposed the free
admission of any Philippine sugar.
Senator Aldrieh prc.ente5 Che finance
s sutbSiitdjc for the house
zirc schedule and il received = MAJ pr
portion Of the attention: of the senate
provided fol Z graduated
scale Il dusy on the 2ils IN zinc ore
IN place Ct the fixed lotG Of the house
oil.
Senator Burton spode against any
Iliv on zine ore. while Senators Hey
burn, Guggenhcim and others a lVocat.d
even a sitter rate than proposed by
Inc committee,
All OF tho finance committee $ rec
as amended were finally
adopted.
Committee Again Upheld.
The committee S suggestion of the
in the silk schedule were also
adopted. A number of committee
of a minor character were
presented Just before adjournment and
some of them were acted upon.
The president, in his message. speaks
If the apparent inability of congress
o agree to an inheritance tax, and rs
an income tax he refers TO
.he decision of the supreme court in
The case Of Pollock VS.. the Farmers
Loan & Trust company In which the
,ourt held the tax to he unconstitu-
,ional unless apportioned according to
''ft is. says the presi.
lent, undoubtedly n power which the
government ought TO have. 1t might
)e indispensable 10 the nations life in
Ireat crises.
Gist of Suggestions.
The amendment suggested provides
or the imposition on all corporations
md Joint stock companies for profit,
kept national banks otherwise taXed)
avings bank and building and loan as
of an excise tax of 2 per
,ent on the not income of said cor
,orations.
The president points out that another
merit TO the tax on corporations is the
'ederal supervision which Will give TO
no government. the stockholders and
hn public knowledge of the real busi-
less transacted, The message was
into the senate while Senator
3urton was speaking. Senator Root
icing in tho chair, ordered the reading
# the document as soon as the Ono
enator ceased speaking.
When the purrort of the message
vas made known. both Republicans
nd Democrats remained in their seats
md all listened attentivcly. Senate"
rore moved to refer il 10 tho commit |
ee on finance with instructions to re-
,ort by next Friday Il resolution for
n income tax IN accordance with the |
resident's recommendation. \ motion |
W Senator Aldrich TO lay Mr.. Gore S |
lotion on the table was carried, IL |
o %, strict party vote
Text Of the Message.
The text of the message follows.
To the Senate and House OF Eepresen-
ltives;
resident from time To time Ia present to
he consideration of congress such meas
res as lie shall Judge necessary and eN-
cdient. In my inaugural address, imme-
ately preceding this present eNtraor-
lnary session Of congress. ! invited at
rntlon to the necessity for a revision of
no tarifr at this session and stated the
rlnCipcs upon which ] thought the rcV-
ion should he effected. I referred 10 the
hen rapidly Increasing deficit and point
d out the obligation on the part OF the
Of hr rif H., fhg
uty so as TO secure an adequate income.
nd suggested that if It was not possible
, do SO by import duties, new kinds OF
ixaiion must be adopted. and among
lem | recommended Il graduated inheri-
,nce tax, as correct In principle and rs
ertain and easy OF collection, The house
T representatives has adopted the sug-
cstlon and has provided in the bin II
assed for the collection Of such tax. In
lo senate. the action Of Its finance COM
litteo and the course Of the debate In
catc that II may not agree to this pro-
siolL and 1t is now proposed 10 make
Continued on Page Seven