Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1882-10-27
TAXATION OF CORPORATIONS.

The question Of the taxation OF corpora
tions now under consideration by the House
Ways and Means committee, of which Col.
George W. Hooker is chairman, Is very i'm
portant one, and we trust will receive the
attention it deserves at tic hands of the Leg
isluturc. That the corporations at present
bear much less than their just share of the
public burden is IA fact too obvious to call for
proof. The railroads, we are informed, pay
an aggregate tax of less than thirty thousand
dollars; and of the other corporations only
the savings banks contribute any appreclablc
amount for the support of Govern
ment On the other hand, in New Hamp-
shire, for instance, the railroads pay
annually into the State Treasury very
large sum-ihis year twas S164, 900 and in
other States these and other corporations
bear an equitable share of the public burden
| There is no reason why similar rule should
not he adopted in Vermont. At the last ses-
sion of the Legislature an effect was made to
this end, under the lead of Gov Page, but
for various reasons it failed. The Page
bill, indeed, was open TO some serious OBJ.
jections but that part Of it which related to
the taxation of corporations had much to re-
commend it. 1t may be of interest at this
time to recall its principal provisions in this
direction 1t levied Il tax on railroads of two
per cent on all gross receipts not exceeding
$4,000 in amount per mile and three per cent
on receipts of over that amount --this to be
in lieu of all railroad taxes except upon real
estate lying outside of right of way four
rods in width upon foreign insurance com
panies lax Of two per cent upon the gross
amount of prepi"ms and assessments col
lected in THU l.. N Vermont mutual
IRE insurar Train TO Boston, and "fhree
fourlhs OF '"''.... nh "pon the gross
amount of their premium notes, after de-
Quoting Aereirom unpaid losses aud the
amount invested in Government bonds
upon mutual life insurance companies with
in the State, lax Of one-half of one per
cent, with the same deduction; upon express
and telegraph companies tax of three pei
upon their gross receipts, or, in
case of default, a penalty Of $1,000
upon the capital stock of all banks, a tax OF
one per cent, after deducting investments in
real estate and government bonds upon saw
ings banks and trust companies, after like
deduction, u tax Of one half of one per cent
on the gross amount OF their deposits and At
cumulations; upon bonds, certificates ant
evidences of debt of all corporations, tax OIL
one-half of one per cent upon all othe,
money and personal property owned by cor
porations. tax of one per cent.
These were the principal provisions Of The
bill, rs far as the taxation of corporations is
concerned. AS to the measure in its entirety
the FEEE Press was unable to supper, it al
the time. Parts OF it were Incorporated in
the new tax law and parts in special statutes
and of most tina. we have quoted above the
Legislature disapproved This part. indeed
is by no means free from objection. The
section providing for the taxation of expires:
companies, which became u law two year,
ago is now before the Supreme Court on 9
/ question of constitutionality, and like law
was pronounced unconstitutional by the
New Hampshire Supreme court and othel
provisions are open to question. But aftel
all, this represents the opinion of n man thor
oughly conversant with the subject. and il
had the support of many Of the best men Of
| Vermont. In this matter of the taxation o.
corporations it ought at least to serve us
guidc-post for legislative action. II the Leg
islaturc will enact a law that will embody it
good points and avoid its bad ones, it will dc
good thing for the State and the people.