unconstitutional.

Just now the tide of popular sentiment is setting strongly toward such a
change. It was advocated in a recent Presidential message.[1] The
immunity enjoyed by state bond issues is coming to be regarded less as a
safeguard of state rights than as a means whereby the rich escape
federal income surtaxes. One is tempted to predict that the next formal
amendment of the Constitution will deal with this subject. If so,
another inroad will have been made by the General Government on the
failing powers of the states.

[Footnote 1: Message of President Harding to Congress, December 6,
1921.]




X

IS THE FEDERAL CORPORATION TAX CONSTITUTIONAL?[1]

[Footnote 1: Since this chapter was first published in 1909 as an
article in the _Outlook_ magazine the specific question propounded in
its title has been settled by the Supreme Court (_Flint v. Stone Tracy
Co._, 220 U.S., 107). The paper is here reproduced, however, in the
belief that its discussion of the principles of our dual system of
Government is as pertinent now as it was before.]


The most noteworthy enactment of the sixty-first Congress from a legal