The citizen. (Honesdale, Pa.) 1908-1914, 1909-06-18
President Estimates It Would
Raise S25,OOO,OOO.
PUBLICITY A FEATURE ALSO.
Asks Amendment to Permit Levy
on Personal Incomes Too.

Washington, June II. President
Taft held special cabinet meeting,
Senator Root also being present, to OBJ
tain views regarding tax on net earn
tngs of corporations. The message he
had prepared for congress was read to
them and then sent to that body. 1t
Is as follows:
ITO the Senate and House of Repre-
sentatives:
"It is the constitutional duty of the
president from time to time to recon-
mend to the consideration of congress
such measures as he shall judge neces-
sary and eXpedient. In my inaugural
address, Immediately preceding this
present extraordinary session of con-
gress. l invited attention to the neces-
sity for revision of the tariff ut this
session and stated the principles upon
which / thought the revision should
be effected
"Oblieation to Raise Revenue"
Il referred to the then rapidly in
creasing deficit and pointed out the
obligation on the part of the trainers
of the tariff bill to arrange the duty so
as to secure an adequate income and
suggested that if it was not possible to
do 50 by import duties new kinds of
taxation must be adopted and among
them l recommended graduated in
heritance tax as correct in principle
and as certain and easy Of collection
''The house Of representatives has
adopted the suggestion and has provid-
ed in the bill 1t passed for the collec-
ton of such tax. In the senate the
action of its finance committee and the
course of the debate indicate that it
may not agree to this provision and it
Is now proposed to make up the deficit
by the imposition of a general income
tax in form and substance of almost
exactly the same character as that
which. in the case of Pollock versus
Farmers Loan and Trust company
(1S7 U. S., 420, was held by the SUI
preme court to be a direct tax and
therefore not within the power of the
federal government to impose unless
apportioned among the several states
according to population.
Income Tax Not Legal.
'This new proposal, which did not
discuss in my inaugural address or in
my message at the opening of the pres
ent session, makes it appropriate for
ne to submit to the congress certain
additional recommendations.
"The decision of the supreme court
In the income tax cases deprived the
national government of power which
by reason OF previous decisions of the
cORrt, Il was generally supposed the
gOyernlient had. 1t Is undoubtedly q
power the national government ought
to have. 1t might be indispensable tc
the nations life In great crises.
although l have not considered 8
constitutional amendment as necessary
to the exercise of certain phases OF
this power. a mature consideration has
satisfied me that an amendment Il
the only proper course for It's estab
Iishment to its full extent.
Urges Amendment to Allow II.
81 therefore recommend to the con
gress that both houses by a two
thirds vote shall propose an amend
ment to the constitution comforting tn,
power to levy an income tax upon thu
national government without appor
donment among the states in proper
ton to population.
'This '.ourse is much to be preferred
TO the one proposed Of re-enacting ,
law once judioially declared to be un
constitutional.