Contemporary American History, 1877-1913Beard, Charles A. (Charles Austin)
History
Contemporary American History, 1877-1913
Beard, Charles A. (Charles Austin)
United States -- History -- 1865-1921
On April 9, 1909, the Payne tariff act passed the House, one Republican
voting against it and four Democrats from Louisiana voting in favor of
it. This vote, however, was of no significance; the real test was the
vote on the several amendments proposed from time to time to the
original bill, and on these occasions the Democratic lines were badly
broken. On April 12, Mr. Aldrich introduced in the Senate a tariff bill
which had been carefully prepared by the finance committee of which he
was chairman. This measure followed more closely the Dingley law, making
no recommendations concerning some of the commodities which the House
had placed on the free list, and passing over the subject of income and
inheritance taxes without remark. The Aldrich measure was bitterly
attacked by insurgent Republicans from the West,--Senators Dolliver and
Cummins, of Iowa, La Follette, of Wisconsin, Beveridge, of Indiana, and
Bristow, of Kansas,--who held out to the last and voted against the
bill, even as amended, on its final passage, July 8. The conference
committee of the two Houses settled their differences by July 30, and on
August 5 the tariff bill became a law.
There were several features of the transaction which deserve special
notice. Very early in the Senate proceedings on the bill, an income tax
provision was introduced by Senators Cummins and Bailey, and it looked
as if enough support could be secured from the two parties to enact it
into law. Although President Taft, in his acceptance speech, had
expressed an opinion to the effect that an income tax could be
constitutionally enacted notwithstanding the decision of the Supreme
Court in the Income Tax cases, he blocked the proposal to couple an
income tax measure with the tariff bill, by sending a special message
on June 16, recommending the passage of a constitutional amendment
empowering Congress to levy a general income tax, and advising a tax on
the earnings of corporations. His suggestions were accepted by Congress.
The proposed amendment to the Constitution was passed unanimously by the
Senate, and by an overwhelming majority in the House,[80] and a tax on
the net incomes of corporations was also adopted. A customs court to be
composed of five judges to hear appeals in customs cases was set up, and
a tariff commission to study all aspects of the question, particularly
the differences between cost of production in the United States and
abroad, was created.
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