Bismarck daily tribune. [volume] (Bismarck, Dakota [N.D.]) 1881-1916, 1911-03-16
A TRIUMPH FOR TAFT.

TRIUMPH FOR TAFT.
There can be no getting away from
the fact that the decision of the Unit
ed States supreme court upholding the
validity of the corporation tax is {
notable victory for President Taft
The corporation tax provisions, as In
corporated in the Payne bill, were dis
tinctly the presidents own idea. He
feared the possible decision regarding
another attempt to impose tax on
incomes, and went to work to find an
other means of raising revenue for the
government, without making the
source of the revenue bear an intol
cradle burden. Thus came about his
conception Of the tax on corporations
and the terms of the present law are
said to have been framed substantial
ly by the president himself, says the
Duluth Herald.
There has been much opposition to
the tax More than dozen suits were
brought in different parts of the coun.
try to have it declared unconstitu.
tional, and the prospects were that it
would be many months before there
could be final decision in the matter
BY combining these several cases as
they came before it for consideration
and advancing them on the calendar,
the supreme court has been able to
give its decision in much shorter time
than was anticipated That the. de-
cision is favorable to the government
is of vast importance to the admins
tration, and the unanimity with which
it was reached must at least be graft.
flying to the men who worked so siren.
uously to secure such a measure.
At the same time, the decision lets
the government out of an unpleasant
position. When the time came for the
enforcement of the provisions of the
law the treasury department. went
ahead with the levies provided for.
and collected something over $27. 0o0.-
600 under its terms. 1t is said that
mad the decision of the supreme court
been adverse to the government II
would have been necessary to issue
ponds to secure funds to make imme.
'olate restitution of this sum to the
corporal ons taxed. The government
now is relieved of this necessity, and
besides Is in a position to- take all
steps necessary to enforce the making
Of returns and payment Of the tax, 10
that there is possibility that the
income of 1000, 900 may be increas.
ed yet more by the certainty Of au.
thority.
The technicalities involved in the
question were all decided IN favor of
the government. These centered about
the nature Of the tax, as the oppon.
ent OF the law claimed that it was
levied directly on property, whereas
the government contended that it is
rather q tax on the right to conduct
business. The former would have been
illegal, but the latter is within the
power of the federal government. The
old issue of state rights was also
raised, but the interstate character of
modern business disposed of that plea.
Such objections as were made to the
publicity features of the law were met
and <remedied by congress and the
president.
Altogether, the decision of the court
Is OF great value to the country. II
establishes a source of federal income
that can bear the burden, and the Set
Element of the questions involved
means a clearing up of some Of tho
doubtful conditions in the business
world.