Vermont phÅ“nix. [volume] (Brattleboro, Vt.) 1834-1955, 1884-02-22
The Corporation Tax Law.

The figures which we publish this week, in
dicating the probable receipts to the state
from the new law taxing corporations, fully
bear out the assertion which we made in our
issue Of Sept. 21st, last that this law was
proving far other than the failure which some
newspapers and good many interested per-
sons were making haste to declare it. Mr..
Forbes's figures apparently come from Com
missioner Dillingham's books, and are prob
ably approximately correct, though we believe
| there should be added to them an item of
| $4,000 due on the Central Vormonts main
line. But, taking the figures as they stand as
basis of estimate, it is evident that the new
law will take the state through the present BIZ
ennial period free from debt, with a margin to
spare State Auditor Powell told the com.
mittee that framed this law that $500, 900
would cover the states expenses for the two
years, including the debentures of the legis
lature of 1882. To provide funds until the
new law got into operation, a tax of ten per
cent. was levied, which raised $1G9, 900. Sup
pose the new law raises only SIG, 900 year
for the two years-though we think it will
raise more-the total sum will be $685., 600.
Add to this the S1G0, 900 already raised, and
we have in all 1921, OOO-indicating that, at
the very worst, the state will be free from
debt and have $21, 900 on hand when the next
legislature meets, instead of an empty treas
ury and necessity for borrowing money, as
heretofore.
Commissioner Dillingham; has not pursued
belligerent policy or involved the state in
litigation by putting rigid construction on
the lava wise course, unquestionably, in
entering on a new field like this. Whatever
the defects of the measure may prove to be,
it is evident that we are nearing point where
we shall be free from state taxes, and this is
something that the people can sec and appre-
ciate. An attempt will undoubtedly be made
to tinker the law in the legislature of 1854
possibly to wipe it out of existence: but
nothing of the kind should be tolerated. The
only change should be in the direction of for
tifying the measure and enlarging its scope,
as experience may dictate, without jeopardz-
ing any Of the ground already gained.
A paragraph which we copy below, relative
to the operation of a similar law in Wiscon-
sin, illustrates a phase of corporation taxa
ton which we are likely to meet before long.
But we can afford to wait and let some of the
more wealthy states settle with the corpora
tons the law points involved
"The Chicago, Milwaukee & st. Paul rail
road paid its semi-annua state tax to the state
treasurer to-day C4th), amounting to Sl65,.
1914, and the Wisconsin telephone company
paid its tax for the year ending Dec. 81 last
amounting to S l, 1884, which is one per cent
of the gross earnings of the company for that
time. The legislature of last winter passed
an act providing that palace drawing. room
and sleeping-car companies should pay an an
nual license fee of two per cent on the gross
earnings as state tax. The Pullman and
Wagner companies have just made reports to
Commissioner Haugen. The Pullman com
pany reports only gross earnings in Wiscon-
sin, failing further than that to fulfil the con-
ditions of the report. The gross earnings for
Wisconsin were reported at $12, 1888. so, upon
which the license fee, which is paid semi
annually, was $l21.S9 for the last half of the
| year. check was sent for the amount. The
Wagner company reported $S13 worth of
business in Wisconsin, and sent a check for
| $l6.26 as license. Commissioner HauPen
however, maintains that the gross earnings,
according to the law, include a pro rata of
earnings where persons are carried through
the state. He also notified the companies
that the checks would be received as tender,
and deposited with the state treasurer until q
settlement of the point could be arrived at"