THE ROLL CALL: HOW ALDRICH KILLED THE INCOME TAX
THE ROLL CALL ON MEN AND MEASURES How Aldrich Killed the Income Tax A FEW weeks ago, in the course of the tariff discussion, Senator Tillman said of Senator Aldrich and his "associates" of the...
...They will find this answer only shows more clearly that the whole proposition is a subterfuge...
...SHOULD THE RICH ESCAPE TAXES...
...The next tax suggested was an inheritance tax, suggested by his inaugural address, made on the 4th of March...
...The Record shows that Mr...
...Early in the discussion of the income tax amendment, Senator Aldrich declared in the Senate, "If the income tax is adopted, I would feel it necessary to go back and revise every schedule in this bill...
...Let Senator Flint answer this question...
...They will find that this does not explain why it must be a corporation tax and not an income tax...
...Smith, Mich...
...From Speech of Senator William E. Borah, May 3-4, 1909...
...I DO NOT believe that the great framers of the Constitution, the men who were framing a Government for the people, of the people, and by the people, intended that all taxes of the Government should be placed upon the backs of those who toil, upon consumption, while the accumulated wealth of the Nation should stand exempt, even in an exigency which might involve the very life of the Nation itself...
...Against the Income Tax—45: Aldrich Bradley Brandegee Briggs Brown Burkett Burnham Burrows Burton Carter Clark, Wyo...
...President, I for one challenge that assertion, so far as it relates to some of the important vital provisions of the proposed amendment" Meanwhile, what will happen if the bill is enacted into law...
...Senator Clapp pointed out the weakness of this defense when, after suggesting that the necessary supplemental revenue could easily be raised by taxing tobacco and intoxicating liquors, he said: "it seems that these plans can not meet with approval here, and so we are relegated to one of three other plans, namely, an inheritance tax, an income tax, or a so-called 'corporation tax.' The first tax suggested by the President was an income tax...
...Smith, S. C. Stephenson *Tillman Of the sixteen Senators not voting" the eight Republicans were paired against, and the eight Democrats were paired for the income tax...
...Crawford Cullom Curtis Depew Dick Dillingham Dixon du Pont Elkins Flint Frye Gallinger Gamble Guggenheim Heyburn Johnson, N. T Jones Kean Lodge Lorimer McCumber Nelson Nixon Page Penrose Perkins Piles Root Scott Smoot Sutherland Warner Warren Wetmore For the Income Tax—31: *Bacon *Bailey *Bankhead Borah Bristow Bulkeley *Chamberlain Clapp *Culberson Cummins *Daniel *Davis Dolliver *Fletcher *Foster *Frazier *Gore *Johnston, Ala La Follette *McEnery *McLaurin *Martin *Money *Newlands *Overman *Owen *Rayner *ShiveIy *Stone Taliaferro "Taylor Not Voting—16: Beveridge Bourne *Clarke, Ark...
...substitute for the income tax amendment, Senator Clay of Georgia asked him why this substitute measure would not also tend to break down the protective tariff system and how he could consistently favor the one proposition and oppose the other...
...When Aldrich was about to submit his corporation tax...
...He had charge of the provision on behalf of the committee, and should know...
...It is brought forth as a subterfuge, as a "means to defeat the income tax...
...You are the boldest band of buccaneers that ever got together...
...Let Senators who voted with Aldrich "for a corporation tax as a means to defeat the income tax," and especially those Senators who were previously disposed to recognize the sentiment of their constituents and to support the income tax, but who "flopped" to the support of Aldrich when he provided for them this "defense"—let them go back to their constituents and try to explain away that answer...
...It was suggested in his speeches before the election...
...Senator Clapp in his speech in the Senate said, "that the plain invitation, the plain effect, of this provision is to encourage the organization of that very kind of corporations, great, powerful, overshadowing, absorbing industries, absorbing industrial life and industrial affairs, by holding out to them immunity from taxation...
...He makes the revenue needs a strong argument to support high duties...
...This form of self-assessed taxation has proven everywhere a failure and puts a premium upon fraud...
...Or let them add his other explanation "that the corporation tax, if it is adopted, will certainly be very largely reduced, if not repealed, at the end of two years...
...Whatever tax is imposed, the corporations will not pay it, but in most cases will shift it to the already over-burdened consumer...
...For it is the real answer for Aldrich's vote and for the votes of those who voted with him...
...But Senator Aldrich's "boldness" was put to a severer test in killing the income tax than it ever was in forcing through a high duty...
...These are forceful words...
...The following is Aldrich's answer, taken from the Record: "MR...
...And Senator Clapp, in his forceful speech, showed that there was no information of the kind that could be of use in dealing with the trust question which would be disclosed under the exercise of the taxing power of this amendment...
...Of course if a large part of the revenue should be raised by an income tax, this would do away with one "standpat" argument against downward revision of tariff schedules...
...Will it result in any publicity of corporation affairs of value to the people...
...They will have even more difficulty in defending their vote with Aldrich against an income tax, by using the plea used by Aldrich himself on the floor of the Senate that "the committee decided to hew closely to the line and follow the suggestions and recommendations of the President in this legislation...
...He expressly reassured Senator Gallinger of New Hampshire that every care had been taken to guard against anything bordering on inquisitorial administration of this tax...
...Oh, no...
...Heretofore, he has opposed it in general terms;—by calling it "socialistic," "anarchistic," and "democratic...
...It is designed, if enacted, to last just long enough to fix more firmly upon the country the evils and oppressions of Big Business...
...The corporation tax by its terms puts the stamp of government approval upon corporate combinations and trusts and encourages them by special exemptions...
...It is the beginning of the warfare of reaction to destroy the Sherman anti-trust law...
...ALDRICH: I shall vote for a corporation tax as a means to defeat the income tax...
...What will be the effect of this particular kind of a "corporation" tax...
...The third tax suggested by him has been the so-called 'corporation tax.' * * * I have heard it claimed about the Chamber for several days that this proposed corporation tax is pursuant to a message which the President sent to this body a short time ago...
...Let these Senators try to "square" themselves by adding Aldrich's explanation that a supplemental tax is needed to meet the deficit...
...Clay Crane Hale *Hughes Oliver *Paynter Richardson *Simmons *Smith, Md...
...Aldrich has at all times and in all ways opposed taxation of the great incomes of the rich...
...This tax is to be administered practically by the corporations themselves...
...It is a blow at the Roosevelt policies...
...THE ROLL CALL ON MEN AND MEASURES How Aldrich Killed the Income Tax A FEW weeks ago, in the course of the tariff discussion, Senator Tillman said of Senator Aldrich and his "associates" of the Finance Committee: "You are not hypocrites...
...They were used to characterize the Aldrich methods of making a tariff law...
...But at this time he makes the bolder objection that an income tax, if enacted, and sustained by the court, would open up a great field of government revenues aside from tariff duties upon what the people consume...
...What could be bolder than his frank admission that the corporation tax was brought forward as a means of defeating the income tax...
...According to his view, in order to provide needed revenue for the government, it is necessary to maintain our tariff at the high level he has fixed in the present bill...
...On Senator Aldrich's motion to substitute this amendment for an income tax, the vote was as follows: (Stars to indicate Democrats...
Vol. 1 • July 1909 • No. 27
