The citizen. (Honesdale, Pa.) 1908-1914, 1909-07-02
NEW TAX DEBATED
AldriCh Tells Why He Is For
Corporation Amendment.
TO BEAT INCOME TAX MEASURE
Flood of kilograms to Senators Ask
ing Them to Oppose President
Taft's Plan but So Are
Said to Favor 1t.
TO BEAT INCOME TAX MEASURE

Washington. June 30.-Senator Aid
rich of Rhode Island, chairman of the
committee on finance and sponsor for
the corporation tax amendment to the
pending tariff bill, announced in the
senate that he favored such a tax for
the purpose of defeating the income
tax amendments of Senators Bailey
and Cummins.
Holly pressed by Senator Bailey, Mr..
Aldrich declined to tell the senate
whether he suggested the corporation
tax idea to President Taft or whether
the president suggested it to him.
Equally pressed by Senator Clay Of
Georgia. Mr.. Aldrich said he would
not take up and reduce the schedules
proposed by the pending tariff bill If an
income or corporation tax amendment
was passed.
81 will say very frankly" replied
Senator Aldrich, "that l will vote for
q corporation tax to defeat an income
tax and that expect the corporation
tax during the next two years will
meet the deficit of $60,000O00 this year
and the deficit of $45000,0O0, which
have estimated for next year. At the
end of two years, think, the tax will
be materially modified, If not repealed.
1 have said that the levying Of an in
come tax in u time Of peace would
tend to destroy the protective system
of taxation"
Mr.. Aldrich formally called up the
Bailey income tax amendment as the
pending provision under the senate
agreement and offered as an amend
ment the corporation tax provision re-
ported by the finance committee.
Mr.. Aldrich declared that with addi-
tional revenue to be provided by the
corporation tax he would be greatly
surprised If there is any deficit next
year. The deficit for the present year,
he added, would be about SGO000,000,
not so great as formerly estimated.
Again, lie declared that if the tariff
LII becomes a law in its present form
it would next year produce an income
of S350,0oO 900
Mr. Flint, who as a member of the
finance committee is to have charge
of the corporation tax provision, then
explained the provisions of the amend
ment. He said the finance commit
tee had considered not only a corpora
tion, but also an income tax law as
supplementary to the tariff, and had
decided it would be unwise to pass
such an income tax bill as introduced
by Senators Bailey and Cummins.
SThey had, he said, abandoned the idea
. of an inheritance tax because such a
flax was so largely imposed by states
and they did not wish by making a
double tax to have it become burden
some.
when the president suggested the
corporation tax" said Mr. Flint, ''the
committee agreed to it and is here
prepared to support it"
Senator Dixon declared that there
would be many failures to reach the
corporations with the proposed tax.
"Still," he said, because the presi-
dent Of the United States and the lead
er Of the Republican party has asked
for it, l shall vote for the corporation
tax amendment" Its chief virtue, he
said, was it's publicity features.
A flood of kilograms is pouring in
upon senators in opposition to the cor
poration tax amendment.
Most of the kilograms come from
persons interested in building and loan
associations, but practically every
character of corporate operations is
represented. Most Of the senators re-
\, ceived from twelve to fifty kilograms
4 and some at least hundred.
Chairman Aldrich says that a can
vas of the senate shows that fifty-twC
Republicans will vote for the corpora
tion tax amendment.