The Idaho Springs siftings-news., 1909-09-25
PRES. TAFT OPPOSES PERPETUATINc
FORTUNESAND UPHOLDS INCOME TAX
Believes Government Should Be Supported in Its
Measure to Impose Corporation Tax of
One Per Cent on Profits

proposed income tax amendment 10
the federal constitution. Al q meet
ing al the Auditorium Tuesday night
the President appealed to the people
in general and Colorado in particular
for the first time during his tour Of
the states. to elect legislatures that
would adopt resolution in support
Of the amendment The response from
popular audience was hearty. but
in nogise enthusiastic. and il did not
come from every part of the building
This appeal followed his set speech
which was an elaborate, judicial de-
fense Of the action of Congress in
passing, and himself in signing, a
measure which included a corpora
ton tax Of one per cent on corpora
uon profits above $4,000. and the
adoption of proposal for a constitu
tioual amendment giving authority TO
the national government to levy an
income tax without the requirement
OF having the same distributed among
the states according to population.
This proposed income tax, the Pres
ldent was careful to explain. is to
serve, in his belief. only in times OF
national stress
With the constitution thus amend
ed the corporation tax could be
strengthened by future legislation
or the corporation tax itself. now
part Of the tariff law. President Taft
spoke at length and defended it, not
SO much on the amount of receipts,
which would be considerable, but be-
cause it would give the government
a leverage on great corporations that
are complained OF by having their acts
come within governmental, or at least
presidential and departmental review
To learn whether the corporations
were paying their proper share of tax
suon under the corporation tax pro-
vision OF the law the government
would nave access to their books.
Further, the knowledge gained would
aid in tariff reform that might be
found necessary as through the lin
quisitorial" channel referred to the
government would be able to tell more
or less regarding cost and profit of
corporations.
An inheritance tax graduated SO as
TO reach the multi-millionaire's estate.
and bring about the more speedy dis
tribution Of great fortunes, coming
from the states was a concession
from the President, to the state
rights men; but in parenthesis he
stated that even double inheritance
tax-national and state-would not be
q burden too great to bear. He was
severe, almost Rooseveltian, in his
frmness against the habit becoming
more common of creating trusts, to
continue for long period. great es-
tates or fortunes in the hands Of the
few. An inheritance tax. unlike an in
come tax. could not be lodged An
estate. after death, could not be hid
den or covered.
Evils Of Income Tax.
The President was judicial in his ut
terances. He pointed out the objec-
t1ons to an income tax, its putting a
premium upon perjury. and quoted the
results in England under the old sys-
tenn. and also pointed out that it would
tax earnings along with the passive
income: nevertheless, he supported
the proposed amendment and pleaded
for its support here on the ground
that 1t would be called into operation
only In emergency.
In part President Taft said:
Il have selected tonight for consid-
Grafton and discussion the corporation
bill recently passed. and the income
tax amendment which at the same
session of Congress. and really as
part Of the tariff bill, though formally
included In joint resolution, propos-
ing to the states to amend the consti-
tuition Of the United States by giving
to Congress power to levy an income
tax generally without regard to the
apportionment Of the tax among the
states according to population.
The necessity for this tariff arose
not only because the rates in a num-
Der Of the schedules had become ex-
cessive and were quite beyond the
measure Of the tariff set by the Re
publican platform. to-wit, the differ
ence between the cost of the produc-
ton OF the article at home and that
abroad. together with a reasonable al
lowance for profit to the American
manufacturer. but also because within
the last year or two the tariff had
ceased to produce enough revenue in
connection with the internal revenue
law. to pay the expenses of govern
ment
Graded Inheritance Tax.
1T was first proposed, and I recon-
mended It in my inaugural address,
that the central government impose a
tax upon Inheritance graduated in
heritance tax. that is. a tax the per-
centage OF which increased ass the in
heritance was greater. in a certain
proportion; but this was objected to
by many Of the states. some OF whose
Legislatures passed protests against
it, on the ground that that was a field
OF taxation which the state had pre-
empted. and in respect to which 1t
would be rather unfair to impose a
double burden. l have no disposition
to quarrel with that conclusion, al
though think q good deal might have
Youngest Of the Spectators.