The Grangeville globe. [volume] (Grangeville, Idaho) 1907-1922, 1912-10-24


sou paid it, The American peonJe
la it, These combines simply raised
,Ss price of their product which thev
IA 10 the American people the amount
X that tax. and the American peonIe
aaid every cent of that s211 900 900 which
vas collected under that law by reason
u paying an increased price on the
oroduct of the Standard Oil companv
and the American Tobacco COMPANY
me of the features which was devotion
"a In the hearing of the American To-
bacco case was this very item-that
when that tax was laid upon the Ameri-
can Tobacco company they decreased
ne size of the tobacco package and
raised the price of the product thereby
and collected every cent of this tax
which had been imposed upon them
from the American people. And so
with the Standard Oil company and
the sugar trust-they simply raised the
price of their product which they sold
10 you and the American people paid
this tax. And that is not all. The
government repealed this tax three
wears later but these corporations con-
tinued to collect this tax from the
American people long after the govern
ment has repealed the law In the in
yestigation of the tobacco trust it was
revealed that they had continued the
collection of this tax for eight years
after the government had ceased to col
lect it. So these great combines step
ned absolutely from under the burdens
Of government, as completely as If they
had been subjects of foreign govern
ment.
sI will give you another illustration
A few years ago when we were re-
vising the tariff. in the Payne Aldrich
tariff discussion, Senator Cummings of
Iowa and the brilliant senator from
Texas, Mr.. Bailey, and myself, formu-
lated an income tax amendment We
said we will levy a tax upon the great
Incomes of the country of two and one
half percent on all amounts over five
thousand dollars and up to twenty
thousand dollars, and three and one-half
percent upon amounts over twenty
thousand dollars and up to forty thous-
and dollars. and so on, graduating the
income tax according to the income
Now, we thought that in this way we
could get some part Of the burdens of
government transferred to these great
Incomes; we thought that these vast
idle estates which were paying their
holders thousands and thousands of dol
lars income. which incomes were being
expended in luxurious living or in mar
rying their daughters to foreign idiots
across the water, ought to pay a part
Of the burdens Of the government So
we submitted this income tax amend
ment When we submitted it there
we're few senators in favor of it.;
most Of them were against it, but at
the end Of two or three months debate
we found that there were about SO
senator's in favor of it, and the people
over in New York City who had these
great incomes found 1t out about the
same time and so the long distance
phone between New York and Washing
ton got busy. 1 have said before and
l say again tonight that one of the
first things to do In this country In
order to effectuate good legislation is
to break down the long distance phone
between New York and Washington.
Applause) So when they found that
we had the income tax amendment prac
tcally passed they sent into us the cor
poration tax. They thought that they
could satisfy these radicals by telling
them they could do something to a cor
poration, and they said therefore 1--WE
viii tax the net earnings of the corpora
tons instead of taxing the incomes of
Individuals and they sent In the corpor
alton tax bill. Now, why did they want
the corporation tax instead of the in
come tax? Why. because they could
uansfer-these great combines could
al the taxes to the consumer which
we're levied against the incomes of the
corporations, but seven times out of
ten you can't transfer the income tax
70 anybody except the man who has
got the income; and therefore they |
said I'VE will tax the earnings of the |
corporation" Now. what has been the |
result Of that on the great corpora |
IONS doing business In this country? |
Tne corporations whose stock il owned |
~ men Of limited means. the corpora
IONS which are operating In field |
where theres is.4 competition and which
nave not the power to fix prices, do |
pay this tax r there IL Q mercantile |
company In this city that is a corpora
Won, It undoubtedly pays the tax, or in
large measure, so. because they are
= field of compositions; but these |
%eat combines which operate In a
Aeld where there is no competition. |
wnere they have destroyed competition. |
vnere they have the power to fix the
pfices, pass the tax over to the con-
inner by : Increasing the price Of the
Eoduct, and 1t Is an actual fact that
@ese great combines have stepped from I
ander the corporation tax which we
ave passed just AZ completely as they |
"a from under the corporation tax in
1sS Now. this bill which I am referr-
~ to was q bill sent over by a repub-
hcans house. Now, my democratic
friends. have no disrespect for you
personally, though perhaps the editor
VIII find out where / am after awhile.
Last summer the democrats sent over
o US an excise tar bill What was
y! 1t was q tax on the net earnings
y every business in the United States
'ver and above a certain amount. They |,
'aad, we win levy tax, I believe It
- two and one-half percent, upon
he net earnings Of the different insti-
qtaons Of the country for the privilege
Y running or doing business. II a man
- running a farm out here and had
y Income over and above a certain
mount he paid q tax on that addition