Edgefield advertiser. [volume] (Edgefield, S.C.) 1836-current, 1909-06-23
A SPECIAL. MESSAGE.
President Taft Takes d Shot
at Trusts.
HE WANTS A CORPORATION TAX
President RECOMMENDS to the Sem
ate the Incorporation Of Provis-
ion In the Tariff Bill. For the Taxa
tion OF the Earnings of Corpora
tions.

ItUu Oi GIe Earnings VI COTQOId-
tions.
Washington, Special-The message
of President Taft, recommending the
incorporation of provision in the
tariff bill for the taxation Of the
earnings of corporations and the ad-
option Of a resolution looking to an
|; amendment Of the constitution SO as
Ito permit the levying of an income
/ tax without interference from the
courts, which was received by the
Senate Wednesday was generally re-
!! garded by Senators as of such tran
cendent Importance as to place in
the shade all questions pertaining
strictly to the schedules of the tariff
Ehill. The message was received early
in the afternoon and, after brief dis
cussion on the method of proceeding,
was referred to the committee on f.
lance.
Recommending legislation looking
to the placing of two per cent tax
on the net income of corporations
and also the adoption of an amend
ment to the constitution providing
for the imposition Of an income tax
withc IN apportionment among the
seve' ,tates, President Taft We'd
ne sent to Congress n message
embodying his views on the subject.
In his message, the President
speaks Of the apparent inability Of
Congress to agree to an Inheritance
tax, and as regards an income tax he
refers to the decision Of the Supreme
Court in the case Of Pollock VS. the
Farmers Loan & Trust Company, in
which the court held the tax to be
unconstitutional unless apportioned
according to population. cit is;
says the President, "undohbtedly a
I power. which the government ought
to have. It might be indispensable
10 the nations life in great crises. "
The amendment, therefore, he de.
clares, was the only proper course.
Such an amendment to the constitu.
lion, he eontended, was preferable to
the one proposed Of reviving a law
judicially declared to be unconstitu-
-tional
The amendment which he proposes
Ito be made to the tariff bill provides
for the imposition upon all corpora
l$tion and joint stock companies for
profit, except national banks. (other,
wise taxed savings banks and bEild.
9 ing and loan assogiati tions, Of an e1-
i else tax IF two per cent on the net
income Of said corporations This; st
lis elected by him, will bring an an
nual revenue Of $25, 100000. "This
is tax on privilege and not on prop
erty,o he says, Sand is within the
Federal power without apportion.
nent according to population
The President points out that an
other merit to the tax on corporations
, is the Federal supervision, which will
give to the government, the stock
holders and the public knowledge Of
the real business transactions and the
gains and profits Of every corporation
in the country. The adoption Of the
amendment, he says, will make long
step toward thar supervisory con.
troll Of corporations which may pre-
vent further abuse of power"
The message concludes:
~ recommend then, first the adop.
ton Of joint resolution by two
thirds of both houses, proposing to
the States an arenduent to the cou>
stitution granting to the Federal gov
ernment the right to levy and collect
an income tax without apportionment
among the States according to popu-
lation; and, second, the enactment,
as part of the pending revenue meas
ure, either as substitute for, or il.
!, addition to, the inheritance tax, Of ali
| excise tax upon all corporations,
| measured by two per cent of their
net income.''
/ The message was referred to tie f.
| nance committee.