The Plymouth tribune. (Plymouth, Ind.) 1901-1911, 1909-07-15
Political Comment.
Regulation Through Taxation.

President Taft is insistent regard
ing his corporation-tax proposal He
wishes the enactment into law not to
be delayed until next winter. 1t is
obvious that he has further proposals
for next winter.
Nevertheless, the President in his
insistence. is not dogmatic. While he
has had the tax bill drawn up with
care by the attorney general. he is
prepared to submit to amendment in
Senate and House. provided the prin-
ciple be established.
He will even accept a lower per
centage as the tax rate. inasmuch as
the 2 per cent rate would probably
produce much more revenue than was
at first estimated. While revenue is
his direct object, his indirect object,
to obtain some supervision of the
as important
The government has succeeded In
establishing close scrutiny and near
supervision of those businesses which
are subject to the internal revenue
laws. Distilleries, breweries and to-
bacco factories are subjects to strin-
gent regulations Similar regulations
as regards stringency are not con-
templated by the government over cor
porations
A nearer precedent can be found in
the case of the national banks, whose
financial transactions are scrutinized
by examiners of the treasury depart
ment. But even such a supervision
Is not contemplated by the President
and his advisers.
What they desire is the power to
look over the books of corporations, to
verify their reports and see that no
evasions OF the tax are being worked.
The law will be framed as an excise
measure. but the compulsion upon the
corporations to live up to its regula-
lions will operate to eliminate some
of the abuses of corporation manage
ment. For example: the ordinary net
receipts OF a corporation. as subject to
the federal tax. will not be allowed
enormous salaries or bonuses. or by
the conversion of stock into interest
bearing bonds or deben;ures.
And. In general, the knowledge of
corporation methods. earnings and the
like, which will be incidentally di-
vulged through the process of collec-
ton of the excise. will prevent many
characteristic injuries to stockholders,
Will render impossible many things
now done in the dark and wiz fur
nish data upon which to base further
regulative legislation. If the later is
shown 20 be desirable.
President Taft, by the approach he
has chosen as regards the corporation
question. has shown instructive states
manship. Government best creates
and attains regulation as an adjunct
to the exercise of its power of taxa
tion.-Minneapolis Journal.
The Income Tax.
Not much, We take it, viii come our
of the program to obtain constitu-
tional amendment permitting direct
tax upon incomes AT best, the chang
ing Of the constitution is to be
achieved only with the greatest diff
Guilty In addition to this popular re-
luctance to tamper with the funda-
mental law, a reluctance which might
almost be called a superstition, the
people Of the United States have a
strong aversion to direct taxes. This
national trait is manifested In all
sorts of expedients, by State. munich
pal and other lesser governments, to
beat the taxation devil around the
stump.
AS for ourselves. we cannot fee, any
violent objection to an income tax
provided 1t be equable and enforcea
Bile. We have never been able to foo
ourselves into thinking that we es
cape taxation by Disgusting the taste
dollar of tax weighs pretty much tbs
same TO us, whether 1t is on a piece o.
4and we own or in the rent charge o.
a piece of land somebody else own:
and leases to US, whether it is on oul
income or on something that we buy
with our income, whether it Is on The
earnings or on the franchise rights OF
on the real property of transporta
ton company. The ultimate consum
err pays just the same.
We guess the further investigator
look into this proposed tax on corpo
ration earnings the more they will
see that 1t is like the mosquito tina
posters only the householder too poo,
to have screens to keep it out. Yet i
it is to be, why, then, those who vii
fare the worst from it will have t.
stand 1t, however able they are to d.
so.-New York Press.
Change of Southern Opinion.
The South furnished for the anti
protection crusade of the eighties ant
nineties men like James b. Beck
George G.. Vest, Zebulon B. Vance
James K Jones, James G. Carlisle
Roger @. Mills, Clifton Breckenridge
William c. P Breckenridge and Vii
liam L. Wilson-spokesme with a.
intellectual sagacity and a unity .
purpose which made them formidable
as the representatives OF section an
the leaders of a party. They had
program which was Ineligible an
positive, and they failed of writin
their policies into legislation onl
Det2use the Democratic majority c
the Senate in 1895 was so narrov
that Mr.. German and few other SUI
yivors of the Randall school of pre-
tectionists were able to dictate tn
terms ON which a tariff measur
should pass that body. Compare
with the anti-protectionist Souther
leaders of fifteen years ago, tn
Souths present spokesman in Coz
gTess certainly lack brilliance, energ
and power. For that reason the
seem to Mr. Mills and other member
OF the disappearing "old guard degeI
crate and invertebrate. Yet the d.