The sun., 1909-06-30
CORPORATION TAX A BLIND
SENATE LEADERS USING IT 1'O
BEAT INCOME TAX

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SENATE LEADERS USING fT TO
BEAT INCOME TAX -.
And Plan 70 Drop II IN Conference In
Favor sf the Inheritance Tax-Ais.
rich Admits HE Heart Isn't in IL
.-Lodge's Ruse Gives IL Preeedeace.
WASHINGTON. June %. Tho corporation
tax amendment to the tariff bill is now
before the Senate. II was called up for
to-day and damned with
faint praise by It's leading supporters.
Senator Aldrich, the nominal father Of
the amendment. indicated that he had no
love for it and that between the 'corpora-
ton tax and the income tar tho oorpUras
ton tax was choice Of evils. -..
Dir. Aldrich 8 remarks were interpreted
by many Senators as an admission thst
the corporation tax proposal had beou
presented merely as Q measure for dsfeat-
ing the pending income tar annendment.
Senator Bailey. joint author Of the Bailey
Cummins measure. which provides for
the imposition both Of corporation tax
and a tax on individual incomes. asserted
that Mr.. Aldrioh had admitted that the
corporation tax was merely a subterfuss
to defeat tho income tax. and in spite of
Mr.. Aldrich's denial Mr.. Bailey par
sisted that Mr.. Aldrich's language ad-
mitted Of no other construction.
. II difference existed - TO what Mr..
Aldrich did say a. to the purpose Of the
Finance Committee in presenting ths
corporation tar amendment. his language
was clear and unmiStakabls whsn he ex-
pressed the opinion that this tax II su-
acted would be repealed in two years
or tho rate OF taxation reduced; while
admitting that the corporation tax was a
good thing in bringing b revenue 10
meet the existing defioit and he was in
favor OF 1t for that reason. he said. he
believed that the tariff bill a. reported
originally from the Finance Committee
would bring In enough revenue TO pro-
vide for the Government's needs.
What Mr.. Aldrich had to say on the
suojeot and knowiedge OF the private
consideration which Senator's are giving
to tho matter bears out the idea that when
the tarif measure Ii enacted into law 1t
will not contain, the corporation tax
provision. but in its place will have the
provision Of the House bill imposing q TAX
on inheritanoes
In his advocacy of direct taxation as a
means of raising revenue President
Taft's first love was the inheritance tax.
He reached the conclusion that the Senate
would not accept the Inheritance tax and
therefore be entered into the arrangement
with t6R Senate leaders under which the
cevpQvatinn ta1 aMsuAnsnt wss rsopoSsd.
No doubt .exists, however, that the
Senate leadsrs will make every edort
TO adopt the corporation tax afnehdment.
But the expectation in wei! Informed
Senatorial Orioles 10 that as soon as the
tariff bill is sent to conferences the Senate
conFeress win show decided willingness
to recede from support Of the corporation
tax and will yield 10 the insistence Of the
HouSs ounferees that the inheritance ta 4
be incorporated in the tariff measure.
Before the corporation tax amendment
was brought forward for confederation
this afternoon Senator Aldrich aroused
some interest by disavowing personal
responsibility for It. He disclosed also q
little unpublis history regarding Presi-
dent Taft's part in bringing :hs matter
r. I'D ~
incidentally he admitted frankly that no
was led TO espouse the corporation tax
after the President had suggested 1t
simply to get rid OF the income tax, and -hs
veatured the prediction that IL enacted
the corporation tax law would remain in
force only about two years.
The statements made by the chairman
Of the Finance COMMITTEES were called
out by Senator Clay Of Georgia. MIR.
Clay was making speech on the amend
meut offered by Senator Tillman inpoe-
ing a duty. of 10 cents . pound on tea.
He branched o6 into a disctission Of the
revenuos and oommenoed TO chids Senator
Aidich for supporting tho corporation
tax. He reminded Mr.. Aidrich that when
he first brought in the tariff bill Mr.. AID
ri Oh estimated that It would produce
enough revenue to meet the expenses
Of the Government and repelled the
suggestion OF the income tax. Mr.. Clay
asked Mr.. Aldrich why. In view Of his
estimate that the corporation tar would
yield about so. 900 900 year In revenue.
he did not oppose II a. an attSck on tbs
protective system. ''" =
T1,. Q<-utor fro~v,