The Mitchell capital. (Mitchell, Dakota [S.D.]) 1879-1918, 1910-03-17

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The oDlUM OF lHE CORPORA
TON TAX.
As was anticipated, the United
States supreme court has been asked
to declare unconstitutional the cor
poration income tax, q provision for
which was put in the Payne tariff
law at the special suggestion Of
Presidnet Taft. It will be remember
ed that at one time during the dis
cusston Of the tarin, 1t seemed prob
Able that q straight income tax would
y placed In the tariff law. The Gin
surgents', In the Senate drew some
strength from the regulars on this
issue and they seemed likely to OBJ
Gain the solid support Of the demo-
cratic side. At this junoture, Presi-
don't Taft threw the weight Ct his
Office against the proposed income
tax. He suggested In its stead that
the congress submit to the legislature
: constitutional amendment proyid-
II Tor On income tar. and also that
spectalstax be laid upon corporation
incomes exceeding 5000.
u combating the constitutionality
Ssot the law. it, opponents will have
Z overcome the weight Of President
s Is prestige y : Judge. That he
glnvs this phase Of It careful consider
asion q shown by his statement
Inst would not Do constitutional
tostax the income from bonds Of cor
pcfations as well - the income from
their stocis.
There should 10 NO wailing on the
paEt q the general publtcsif this law
should fail toapass the ordeal Of In
spsction ~ the supreme court Of the
SUnited States. The general income
~ proposes TO collect from all indi-
yid1als A. proportion to their In
some above hxed minimum. In
other words. zach tax would fall
heavily upon the very rich; It would
- wealth. The corporation income
tAx..hoWever would fall upon even.
the Door 4 they happened to own .
isihsreA ofNessosksinsa AssSsso6rporation
Itisanotor, luszfact that the manipu-
laltorsSof stocks who are Ia most cases
among the very rich, make . practice
. unloading their holdings upon the
public. They do not own stocks for
purposes Of Investment q much as
tor specplation.9and thessman buyer
~ their choice OF subjects. Bonds, on
the other hand. are popular with the
wealthy and yet the corporation In
come tax does not reach them at all.
There are thousands upon thous-
ands 81 corporations doing business
thegconntry over. IN q large majority
sSof cases they are laW-abiding. Pre-
sumably there Is some advantage In
acorporation to those who choose
that form of business nrm. Yet many
corporation can honestly resent the
tx y punishment for doing what
under the laws OF every state is q
perfectly legitimate thing.
The corporation tax Is odious for
theEreason that II Is not levied wiz
any considerations for the amount Of
property owned by those taxed. It is
ansold rule and hard to improve that
governments should tax wealth, not
poverty.
But even X the law 10 not sustain
ed ~ the supreme court. 1t will have
served Its purpose, which was to pre-
vent m attempt by congress to secure
from the supreme court q reversal OF
Its decision that a general income
- law Is unconstitutional. We may
veil believe that the president, with
Shisrespect for the highest court born
of service under Il, was perfectly sim
core n opposing the passage Of q
general income tax law for a second
time By congress. We may believe
THU. even if the president ravaraod