The Washington times., 1909-06-16
DEFEAT SCENTED
FOR INCOME TAX
News of Presidents Over
lures Spreads Con-
Sternation.

The White House and President Taft's
special meeting Of the cabinet were the
centers of sne legislative interest today
The people at the Capitoi were con-
cerned for nothing save 10 learn the
results Of the cabinets conference or
the corporation tax proposition. and to
know wether the expected message
would reach the senate today, and what
would be the exact terms of the cor
poration tax measure when finally com
pleted.
The men who have been making the
fight for the income tax, and who have
believed, until President Taft came &c
the rescue of Senator Aldrich and the
Finance Committee, that it would car
~ the Senate, were thoroughly discour-
aged today. They admitted that. In al
probability, they were defeated, attrlb'
uting It entirely ii the influence OF ths
President, insisting that il he had not
taken a hand they would have carried
the income tax through the Senate and
that it would have been left in the bill
by the House.
1t can be said, on the authority OF Re
publicans who have been taking a lead
ing part in support of the income tax
that they will 90 light aEead with the
fight no matter what course the Al
mlnistration may tske, and no matter
whether they are fcredoomed 10 detetI
Said one Senator today
This corporation tax proposal VIII
be used TO Kill the income tax and that
Is why MIR. Aldrich is for Il. No,
can't tell yet whether he will be able
to get il killed in conference: but II
doesn't make very much difference
wheIhere ne does or not The argunleDt
advanced in favor of il is that IL viii
ne he
get the information the Government
needs IN order 10 enforce the antitrust
and regulative statutes. Well. II VIII
get noinfOTmation that the income tx
measure would not get, and it will not
raise nearly so much revenue. The IL
come tax measure provides for the tax
on the income of every corporation ana
for the most complete publicity concern
ing their affairs. II is possible to put
exactly the same publicity provisions
into II, If that is desired, that are TO b.,
used in a corporation tax measure.
But what viii become of the incomes
OF men who. like Mr.. Carnegie, hold
the bonds Of huge corporations, AID
from them derive immense incomes?
This is a tax on the net earnings OF
corporations. The bondhOlder must be
paid his interest before there can be
any net earnings. Mr.. Carnegie would
get away with his per cent on tae
S4Oe. 100000 or whatever It is, OF the bonds
OF the Steel Corporation, aud there
him-nelther directly or through the cor
poration. Moreover, the tax on net
earnings Is one that the corporation
can pass on down 10 its consumers; the
stockholders will not feel il. The in
come tax is the one tax which reaches
both the bondhol ters and the stock
holders, and can be taken without beins
passed along to the consumer, the pa o.
iron Of tn corporation
II Is declared by so ne of the unrecOn-
ciled Senators that when the matter
gets to the Senate there will be some
exceedingly plain talk, whose purport
will be that this measure serves the pur
pose of killing the Income tax, and no
other
On the other hand. Senators who are
supporting the corporation tax declare
that Mr.. Aldrich does not like it, and
never has favored 1t except when he
was forced TO take il up. as a result of
the Presidents insisteace. They declare
that il will be accepted by the House.
and will prove a most useful law.