Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1909-06-26
TAFT TAX PLAN
INTRODUCED
IN SENATE
HAS ENDORSEMENT OF
LEADERS IN CONGRESS
Strong Effort Will Be Made to
Pass Measure Without
Amendment Imposes 2 Per-.
Cent Tax on Corporations,

Washington. June 25,--President
Taft's much heralded corporation taS
plan was presented to the senate to-
day by Senator Aldrich and was or
dered printed as committee amend
ment to the tariff bill If schedules
are completed by Monday, the amend
ment will be taken up.
In general form the measure fol-
lows the outline given by the Asso-
eiated Press after the conference at
the White House Tuesday night AS
drafted by Attorney General Wicker
sham and senator Root the measure
is believed to he amendment proof
and an effort viii be made to put it
through congress unchanged. 1t WIN
be designated as the Taft plan"
The plan imposes a tax OF 2 per
corporation, joint stock company or
association organized for profit and
having a capital stock represented by
shares and every insurance company
organized the laws of the United
States or of any state. territory or
district or organized under the laws
of any foreign country and engaged
in business within the United states.
Every latitude is given to concerns
for the exemption OF expenses. cost
9t..tf .
erty, debts and the interest thereon.
other forms of taxation and all ex-
penditures usually taken from earn
ings accounts. Every corporation is
also given an exemption of $1,000 II
earnings before t&g tax special apply.
All machinery relating to the col
lection. remission and refund of IN
ternal revenue taxes is made appn-
cable to the corporation tax and the
for the enforcement or
the proposed law rests with the COM
missioner of internal revenue in the
same manner as other internal taxes.
While the corporations are re-
quired to supply intimate informa-
tion relating to their business, provi-
sion is made to safeguard them
against wrongful use OF data OBJ
tanned for the purpose of assessing
the tax. Penalties are provided in
cases of false or fraudulent returns.
Practically every character of in
institution organized from
profit is brought within the provi-
sions of the tax. The provision defin-
ing the concerns from which the tax
viii be collected follows:
That every corporation, joint stock
or association, organized for
profit and having capital stock rer-
by shares and every insur-
ance company. now or hereafter or
under the laws OF the United
states or of any state or territory II
The United states or under the acts |
IF congress applicable to Alaska or
.he District of Columbia, or organ |
zed under the laws of any foreign |
ana engaged in business In |
my state or territory of the United |
states or i'm Alaska or i'm the District |
,f Columbia shall be subject to paw |
a special excise tax with re-
ipect to the carrying on or doing |
business by such corporation, joint
stock company, association or insur- |
lnce company, equivalent to two per |
,ent on the entire net income over |
md above $4,000. received by 1t from
m sources during such year. eNclu-
,ive of amounts received by il as divi-
lends upon stock of other corpora
ions. Joint stock company or associa'
ions, or insurance companies subject
o the tax hereby imposed or if or
,anized under the laws of any for
ign country upon the amount of net
ncome over and above $4,000 re-
eived from business transacted and
apital invested within the United
,lates and its territories. Alaska and
district of colombia. during such
ear. exclusive OF amounts so re-
cived by it as dividends upon stock
# other corporations, Joint stock
ompanics or associations or insur-
nee companies subject to the tax
lereby imposed.
such net incomes shall be ascer-
aimed by dcducting from the gross
mount of the income pf such cor
,oratlon. joint stock company or asso-
iatlon. or insurance company from
n sources.
"Au losses actually sustained with
n the year and not compensated by
or otherwise. including
allowance for deprecia-
ion Of property, If any. and in the
ase OF insurance companies the sums
equired by law TO be carried to pre-
mum reserve fund.
Interest actually paid within the
ear on its bonded or other indebted
ess not exceeding the paid-up cap
tai stock OF such corporation, joint
tock company or association or IN
urance company outstanding AT the
lose Of the year.
"An sums paid by 1t within the year
or taxes imposed under the author
Is Of the United states or any state
r territory thereof.
"An amounts received by il during