The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1912-07-28
SENATE AND HOUSE AGREE,

AT last we have an agreement be
tween the Senate and the House on a
matter of important legislation, that
is. the passage Of the so.called excise
law, which would extend the corpora
tion tax TO the business done by firms
individuals, and copartnerships. 1t is
likely that the legislation would be held
| to he valid and constitutional by the
Supreme Court. but where is the ur-
gency for passing measure OF this
| kind at this time7 The income tax
amendment TO the Z. S. Consti-
tuition will undoubtedly be ratified
by enough State legislatures within the
next eight or nine months to make that
3 part of the constitution. BY waiting
legislation Of this kind until that ratifi-
cation Is complete there would be no
doubt about the validity of the passage
of straight.out income tax law which
the proposed excise tax is not. But
a straight out income tax law is inf
nitely preferable to this proposed eS-
else law. Therefore the House and
Senate are merely forestalling what
ought to be good deal better legislation
after the ratification of that amend
ment; and nothing is to be gained in
time, either, because. this excise law
would undoubtedly be fought in the
courts and would be held off from
practical application much longer
time than will be required to ratify
the income tax amendment. And the
passage of this law would have the
deleterious effect of affording excuses
to those members of the different leg
islatures who might be willing to op-
pose ratification Of the income tax
amendment, for opposing it; for they
might say, and very likely some of
them would say, that we already have
an excise law that aims at the same
thing as an income tax, and if this law
is valid, the ratification OF the amend
ment is needless And so the enact
ment of this excise law, besides be.
ing premature, would be likely to have
a sinister effect on the adoption Of
the proposed amendment to the con
stitution expressly allowing of the
imposition of an income tax.
The bill laying this income tax pro-
yides, as amended, for the repeal of
the Canadian reciprocity act, and in
place of allowing the import Of paper
and paper pulp free from Canada, it
imposes duty of So a ton upon the
paper 1t is probable that this would
make no difference at all in the price
Of print paper; but it is unwise, as a
matter of fact, to forbid the free entry
of paper pulp and print paper from
Canada, because, although this free
import so far has no perceptible effect
on prices, it is a useful brake upon the
paper trust, to hinder it from advanc-
ing the prices Of print paper, And so,
merely as a brake upon the willful in
flation of prices which might occur
On the repeal of that portion of the
Canadian reciprocity act, we think that
such repeal is not only unwise, but an
blunder.
As TO the reciprocity features proper
in that act. President Taft has recon-
mended the withdrawal Of the recipro-
city offer, since it has been so sipnally
by Canada. In this, and on
the general proposition, we consider
President Taft s recommendation to be
sminently sound, and there ought not
10 be any objection from any quarter
to the repeal of the merely reciprocal
features of the Canadian legislation.