East Oregonian : E.O. (Pendleton, OR) 1888-current, 1909-05-18

4
ed the corporate excess" This prin'
ciple extends broadly to all Massachu-
setts orations-financial, public
service, and general business. The en-
tire system of corporate taxation In
Massachusetts, is Characterized by uni
formity of theory, careful classlfica-
ton Of different businesses, and ex-
pertness of administration.
A feature of the Massachusetts, sys-
| tenn worthy of special note Is that the
tax for state and local purposes upon
corporate excess Is extended 20 what
is known as business corporations"
manufacturing and mercantile)
From this class Of corporation alone
there is received over $2000,O00 OF
revenue. When 1t is considered that
this large sum comes from the taxa
ton of the tangible value of class
Of corporations which goes practically
untaxed under the systems Of other
states some idea of the significance OF
the Massachusetts system is realized.
Opinions may differ as to the appli-
cation in some cases of the corporate
excess system, but there is no doubt
of its effectiveness. Not the least of
its strength lies in the possibility Of
applying to all classes of corporations.
Referring to the revenue received
from the corporate-excess tax on that
class of corporation which always con-
tributes large item (public-service
companies), the commission of 1907
says that practically all recent legisla-
ton in other states has included an
approximation toward the standard
of Massachusetts,, adding:
"The public-service corporations of
Massachusetts now contribute more
nearly their fair share to the public
revenue than do the public-service
corporations of other states.
Rhode Island.
To corporations desiring to do busi-
ness in Rhode Island the tax system
of that state offers an inducement to
incorporate under her laws. This con-
sists In a deduction for actual indebt-
ness from taxable personal property
to domestic corporations only, cor
porations without a Rhode Island
charter not being allowed this privi-
lege.
Morever, no corporation doing busi-
ness in Rhode Island is taken on its
intangible personally, such as bank
deposits and net credits. The result
is that it is not uncommon for most,
If not all, of the personal property of
a domestic corporation to escape tax
alton, the intangible personally not
being assessed according to law, and
the tangible personally being cancelled
by Indebtedness
Perhaps no other state in the Union
certainly none in New England, ap-
plies the local general property tax to
so widely as does Rhode
Island Even her steam railroads are
taxed only locally on real property,
precisely in the manner as individuals.
The classes of corporations in Rhode
Island subject to special state tax
are not many. They are savings
banks and insurance, telegraph, tele-
phone, street-railway, and express
The state taxes the de-
posits of savings banks and the re-
ceipts or earnings of the others, The
total state receipts from this special
taxation of corporations in 1908 was
nearly 100000, of which savings
banks paid nearly half the insur-
ance companies over third, and !
street railway, telegraph, telephone, |
and express companies nearly a six /
IN.
The state general property tax, or |
the proportion paid to the state by |
the towns from their taxes on real and |
property, in 1908 was also |
nearly 100000. Part Of this state pro-
perty tax was collected by the |
towns from corporations, but it is |
practically impossible to tell how |
much was so collected.
The total receipts from all sources
o the Rhode Island state treasury for
state purposes in 1908 were $2,153.-
i9O.79. In connection with the ur-
gent need for more state revenue. as
by the state treasurer, it is
to note the low percentage !
,f thetotal state revenue derived from
he state taxation Of corporations. In