The Ward County independent. [volume] (Minot, Ward County, N.D.) 1902-1965, 1909-06-17
CORPORATIONS
Hident Taft So Recon-.
mends to Congress.
BIIEYES IT IS LEGAL

Al Urges the Adoption Of 4 ResoIu-
Submitting to the States a Con.
kutional Amendment Giving Con-
ess the Power to Pass an In.
ne Tax Measure-compIete Text
the Message.
darlington, June l7.-Presldent
I'd has sent to congress a special
image. urging the passage of an
az dment to the tariff bill imposing
Of 2 per cent upon the net earn
I'M Of corporations and the adoption
Of resolution submitting to the sew.
or states an amendment to the Con
stttion giving congress the power
to impose tax on incomes. The text
Of he message follows:
my inaugural address, imme-
diafly preceding this present extraor
diHry session Of congress, l invited
attntion to the necessity for a revi
sid Of the tariff at this session and
staed the principles upon which I
thqght the revision should be eff.
feded. I referred to the then rapidly
Ind leasing deficit and pointed out the
obligation on the part of the trainers
of the tariff bill to arrange the duty
20 as to secure an adequate income
IN suggested that, If it was not
possible to do so by import duties,
neV kinds Of taxation must be adopt
ed, and among them l recommended
q Graduated inheritance tax as cor
rec; in principle and as certain and
easy of collection. The house of rep.
resentatives has adopted the sugges-
tiol and has provided in the bill it
passed for the collection of such a
tax. In the senate the action of it's
finance committee and the course OF
the debate indicates that it may not
agree to this provision and it is now
proposed 10 make up the deficit by
the imposition of general income
tax in form and substance of almost
exactly the same character as that
which, in the case of Pollock VS..
Farmers Loan and Trust company,
was held by the supreme court to be
q direct tax and therefore not within
the power of the federal government
to impose unless apportioned among
the several states according to popu-
lation. This new proposal, which l
did not discuss in my inaugural ad-
dress or in my message at the open
ing Of the present session, makes it
for me to submit to the
congress certain additional recon-
Asks Constitutional Amendment.
The decision of the supreme court
In The income tax cases deprived the
nas lonal government of power which,
by reason of previous decisions of the
court, it was generally supposed the
had. It is undoubtedly
a power the national government
ought to have. 1t might be indis-
pensable to the nations life in great
crises. Although l have not consid-
cred constitutional amendment as
necessary to the exercise Of certain
phases of this power mature con-
siflcration has satisfied me that an
is the only proper
course for its establishment to its
full extent / therefore recommend
to- the congress that both houses, by
a two-thirds vote, shall propose an
amendment to the Constitution con
ferring the power to levy an income
tax upon the national government
without arportionment among the
states in proportion to population.
This course is much to be preferred
to the one proposed of re-enacting a
law once judicially declared to be un-
For the congress to
assume chat the court will reverse it.
self and to enact legislation on such
an assumption will not strengthen
confidence in the stability OF
judicial construction of the Constitu-
ton. It is much wiser policy to &C
cept the decision and remedy the de-
feet by amendment in due and regu-
lar course.
Again, 1t is clear that by the enact
ment of the proposed law the con-
gress will not be bringing money into
the treasury to meet the present de-
ficiency, but by putting on the stat
ute book law already there and new
or repealed will simply be suggesting
to the executive officers Of the govern
ment their possible duty to invoke lit
igation. II the court should maintain
its former view no tax would be col
lected at ALL If 1t should ultimately
reverse itself still no taxes would
have been collected until after pro-
tracted delay.
It is said the difficulty and delay
IN securing the approval of three
fourths of the states will destroy all
chance of adopting the amendment.
OF course, no one can Spa with GER.
tainty upon this point, Dus have be-
come convinced that gront majority
of the people of this cc:,tiy arc in
favor of vesting the national govern
n,ont with mower to lew an income