Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1909-06-30
THE CORPORATION TAX.

Mr.. Taft. and several members or
his cabinet. All ranking among the
ablost iawyers Of the age, ave pre-
pared an amendment to the taritt
bin for the purpose Of icyying a tax
anon the net hearings of corpora
lions, and have succeeded after long
ana careful effort in putting It IN
suoh form ms they believe will cause
the supreme court "a regard IL as IN
harmony with the letter and spirit of
the constitution.
on the other hand there are other
very able attorneys. and a good many
Of them. who are equally confident
that the amendment, az framed, viii
not meet the objections which the
supreme court has raised IN other
cases Of similar character.
But AIR. Aldrlch. on behalf of his
committee. has accepted and offered
the amendment. thus giving II
n%ominany. at least, his approval,
while at The same time Il y very well
known that his real purpose In ac-
cepting the corporation tax amend
meut is to head-off the movement In
favor Of a straiehtout income tax
amendment tn his biil-and now tho
question If. what viii be the out
come?
II ii already clearly apparent that
the Au-callod Taft plan viii pro-
woke about as much opposition IN The
republican ranks as Tie "insufgent
plan for a direct income tax--then
what Is to be gained BY the change
of position a good many of the
nblest and soundest republican jour
nails Of the country have already ex-
pressed. Ia the plainest and most
positive terms their uncompromising
opposition TO the presidents plan.
For example, the following carefully
prepared editorial by the Philadel
phin Public Ledger. may be taken as
a fair Illustration or the spirit In
which the new plan Is regarded by
most Of The leading Journals Of the
party.
Whatever reason on justification
the president ana his advisers can
devise for his proposed tax upon corr
poraiion earnings declares the Pub
Tic Ledger. there IS every kind
of reason why il should be opposed.
II is bad ia Itself ana worse IN the
circumstances OF it, inception
IN the fifst place, Il is not what il
pretends to be. q necessary means of
providing increased revenue Apart
from the consideration hat increased
revenues would not be required were
an, reasonable effort made to re-
strain the growth of expenditures,
the recognized forms OF taxation long
In use offer abundant revenues that
have not been usod The vtanr taxes
alone. under the emergency act of
1885. yielded more than $4,000 600
year. TO re-enact THESE would
cause neither hardship nor dispute
nor raise any constitutional question
WHY are they overlooked
The new tax proposed II acknowi-
edged To- bee designed not really for
revenue. but with the Interior purpose
OF bringing an corporations by this
means under federal inspection aud
control II is a plan to extend The po-
lice power through the exercise of the
taxing power II should be opposed
ON that ground alone. IL the federal
control of corporations IS desired, Il
should be considered on IFS merits
not as an incident of a customs
mriff
40 such radical departure as this
was even suggested in the republican
platform upon which the president
and the majorli, nf thc present con-
rross we're elected on the contrary.
an their pledge Implied shat the OK
listing rovenue system of the country
was not 90 ID, materially changed exc
cent d, possible reductions. To bring
forward . ncw and questionable
measure now to divert attention from
tho failur, of party pledges on thel
tariff and to impose upon the coun
ts "a prominent feature of enc Bryan
platform which fhr country meant to-
repudiat, is an example Of bad
faith destructive to our political sys
tenn
That ought a. Condemn IT, even Or
the measure itself Would bear eNami-
nation. as d Wul not II has not
even the excuse of good politics
for no president ever has been strong
enough ~ reverse DIS part2s record
suddenly without throwing Dc into
confusion IT. ~disrssarding the CONE
sututional purpose that al bills for
raising re,enuc shall originate in uhe
house OF representative D uresi-
dent shall succeed Ia originating %
dill which the Bryaniie senators win
aiiew 10 pass. Il is already evident
that the dream u Fpeake in the