The Ellensburg dawn. [volume] (Ellensburg, Wash.) 1898-1914, 1909-07-22
No. 20
WHO PAYS
THE TAX?
ALDRICH AND TARIFF BILL
Offers Corporation Tax Measure
As a Substitute for Income
Tax Bill and Declares he Will
Defeat it in The Senate

On April 19 1909, in opening
the debate on the tariff bill, Sena-
tor Aldrich said
The pending bill will, if en-
acted into law, provide all the
necessary revenues required for
public expenses upon a liberal
scale. No further additional taxes
are needed"
In the face of this declaration he
subsequently offered an amendment
to tax corporations and thereby
raise $50, 200, 900 of revenues, be-
sides the enormous sums derived
from the tariff duties.
Why did Mr.. Aldrich shift his
positiono Because an amendment
to tax large incomes had been in
troduced and was certain to pass
Votes enough were pledged to as
sure this. Mr.. Aldrich is opposed
to an income tax so are Morgan
and Rockefeller and other amiable
gentlemen who have acquired large
incomes with an absent minded
disregard of the rights of the bal
ance of the human family. The
friends of an income tax urged
that more revenues are needed, and
even if more revenues were not
required to pay the expenses of
government the excessive tariff
charges should be reduced, and the
amount necessary supplied by
tax on large incomes.
Now Mr. Aldrich has his forces
we'll in hand He knows when the
vote is doubtful before the roll is
called. There are small men who
fetch and carry for him. He knew
that an income tax would pass
Hence the shift to a corporation
tax. 1t had a good sound. 1t
would f ol-not senators-but
many other people. And it would
give senators who, out of a whole
some respect for public opinion had
pledged themselves to vote for an
income tax an opportunity to side
step and vote for tax on corpor-
atoms -
1t certainly had right good
sound, and for campaign purposes
would serve quite as we'll as a tax
on incomes. Besides it was much
more agreeable to a great many
people. The men with the big in
comes were highly gratifed. The
large corporations did not object as
was proven by kilograms to sena-
tors. Only the small corporation
i'll competition with an individual
or co-pattnership would have any
trouble in passing the tax on to its
customer.
So Mr.. Aldrich offered the cor
poration tax and in a burst of con-
fidence, or rather anger, said: Il
shall vote for the corporation tax
to defeat the income tax"
1t defeated the income tax and
was adopted by an overwhelming
vote. Senators voted for it know
ing it would not tax corporations
but the public.
Il shall vote for the Aldrich
amendment. said senator after
senator in the cloak rooms, be-
cause it is easier to do so than to
explain my vote against corpor-
alton tax, and yet l know that
every corporation which ought to
pay higher taxes can pass the tax
along to the consumer so that in
the end this corporation tax will be
paid by the individual taxpayers
who now bear more than their pro-
portionate share"
A corporation tax can be laid and
collected without possibility of
shift or transfer to the consuming
public only as to those corporations
the rates and charges of which in
their dealing with the public are
strictly regulated and controlled
upon a basis of capitalization
representing c II a investment.
But in no case will this tax fall up
on a cornoration controlled by the
Federal government, for it will be
added to interstate freight and pas.
senger rates; to express, telegraph,
and telephone charges; it will APP
pear sooner or later in the increased
prices of iron and steel and hard
ware and machinery and agricul
tural implements and clothing and
the food products. -LaFollette' S
Weekly Magazine.