Show THE TH E TAFT PLAN The corporation tax proposition n has been introduced in the senate by Chair Chairman Chairman Chairman man Aldrich and ad it Is said sal d an effort will willbe willbe willbe be made to push pu h It through both houses of congress congre 8 without amendment The bill bUi billas bUias was as drafted by Attorney General Wick and Senator Root and IB ie claimed to be bP perfect In all aU respects A tax taC of i per cent is levied upon the net earn earnings earnIngs ings inga of every corporation Joint stock tock company or association organised for profits profit and having a capital stock rep represented represented represented resented in shares and ami every Insurance 1 company com pan organised under the laws Jas of the United States or any aB state terri tern territory territory tory or district or organised under the i laws law of any foreign company and en so engaged aged in business within the United States There are exemptions exemption e for expenses cost of maintenance depreciation depredation of property debt debts and the Interest there thereon 4 on other forms form of taxation Mod nd all ail ex expenditures exi expenditures t i taken from earnings ac accounts account counts count and every even corporation Is given giveR an exemption of of earnings beo be before before o fore the tax shall apply This Taft plan of raising the wind Ind was wa born on account of a desire to beat the Income IR ome tax and the president p dent is under suspicion u of having haTing been used URd as a tool by the Republican Bour Bourbons Bourbons bons bone It H was wu freely charged when w the recent message mea age made its appearance that Senator Aldrich and not Mr lr Taft TaCt T is fa the parent of or the plan According j i to the correspondent of the Philadelphia North American Senator Aldrich pro pm proposed pros s L posed to the president that he send mad to tor r f congress con the message advocating the corporation tax tat but he be did not do It di dl directly i Instead d he be sent Senator Bourne of Oregon to Mr Ir Taft Talt Bourne to is re rc regarded as a clot close do friend of the proM president pre I Ident dent and one of his h hose boon companions on the Chevy Che Chase golf If links The correspondent then tells tens how the game me j was U worked w Bourne broached the subject to Mr II Taft Tan in a golf olf game He told him the time had come for him to harmonize the contending Republican forces In III the senate te by assuming the leadership him himself himself i self If and this th he hI could do by sending in ina Ina j a message Ir lr is further reported that Ut i after the golf If game Senator Aldrich dropped in at the White house and k found the president In i frame of mind mint which wl kh Inclined him to tn adopt the aug sug suggestions of Senator Bourne Aldrich I agreed and the t h e message was waa decided is upon and its character and scope agreed t l I Id st d r I to That account ma may or 01 may not be true 1 but it emanates from Republican 1 i s E and appears to be quite reason reasonable f i s able abt ab in M view of all aU the circumstances eI Stitch will w w il be made of the fact that th h hi hI hi hL I 1 4 i L i new tax measure has been drawn by Wickersham and Root and it will be claimed that perfection has been Men attained owing to the tb eminent legal qualifications of these th two gentlemen Yet neither one of them had read Jus Justice Justice Justice tice dissenting opinion in the Income tax case Neither had Part haft or any of the lawyers IH lit his cabinet So there Is ie some SORt doubt after all and the bill will probably bear beer close clo scrutiny For instance it may be that while the stockholders are subject to this special tax the bondholders will escape with the result re that stocks will be turned into bonds by bf b controlling interests Inter interests t and the tax avol aOI avoided ed Under the bill drawn by bT and Root the bonds are not taxed tax d Those e Republicans who fa favor favor favor vor the income tax taC insist ln let that the bond bondholders bondholders holders bolden Carnegie for tor instance be reached reacted Bonds Bondi are mortgages upon the property of or corporations Their Interest must be paid paki or th the tha corporation goes Into the hands hand of a receiver Only by taxing incomes from bonds can the bondholder be reached and the advocates advocates cates of the Income tax cite this as a reason why they should persist t in the efforts to impose such sueh a tax President Taft is said mil to be in favor of taxing the bonds and It was freely treely asserted a that an effort would be made to draw the corporation tax bill with this end in view Apparently the thing was wu Impossible or else el the president has changed his mind again which has lias oc occurred occurred occurred one or two times Umes lately The Taft Tatt plan is III before congress and it is highly probable some mighty might interesting things will wilt be said Hid before it itis ItI Itis is I written into the tire statute books |