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

1908 this was only 1913 per cent
quite contrast to percentages in some
Of the other states In Connecticut,
for instance, such percentage is S3,-
54. Rhode Island is one of the very
few states having no inheritance tax.
Connecticut.
| Over four-fifths of the total reve-
nue. for state purposes in Connecticut
comes from state taxation of corpora
| tions. In 1908 the total state expenses
were nearly three and a half million
dollars, OF which the corporations do
ing business in Connecticut contribut-
ed nearly tree millions; and Of this
| three millions the railroads paid over
a million, savings banks over half a
million, and insurance companies over
half million.
Since the suspension In 1890 Of the
state tax on real and personal pro-
perty, there has been a complete sep
aration of the sources Of state and
local revenue One Of the methods
proposed for supplying and increase
Of state revenue is the re-enacting of
the state general-property tax.
Another method proposed for in
creasing the state income is to tax
the corporate excess of manufacturing
and mercantile corporations. Such
corporations, sometimes referred to as
general business corporations" are
at present taxed locally on property
in the same manner as individuals and
therefore pay little, If anything, di-
rectly to the state.
In an address before the Farmers
association of the legislature on March
10, 1909, Mr. Corbin, state tax COM
missioner, said.
THE value of the shares of the cap
ital stock and the Indebtedness repre-.
sents the fair value of the property,
tangible and intangible, of every SOL
vent corporation.
when a corporation is taxed on
its property in the same manner as in
dividuals, the aggregate value of the
various assessment schedules may fall
far below the value of the entire busi-
ness plant or enterprise of such cor
poration considered as unit and !
measured by the aggregate value Of its |
bonds and shares Of stock. On the |
theory that every element or factor |
which gives to a corporation value for |
income or sale should be considered !
in fixing the taxable value, this unas-
sessed residuum may be reached by |
tax which is generally termed the tax
On corporate excess
"A list of eighteen corporations of |
this state selected at random, nearly |
all from two cities, showed the bid |
value of the stock as given by the |
local brokers on October 1, 1908, as
$S5, S62, $50, while the assessed valua-
tion of these same corporations by the |
local assessors was $12,746,361. This |
shows a 'corporate-eXcess' valuation |
of over twenty-three millions dollars, |
not including any bonded indebted
ness. The aggregate of such excess
valuation of all similar corporations
throughout the state which now es-
capes taxation must be very large"
This recommendation means that |
and mercantile corpor-
ations would be taxed in the same |
way in which Connecticut now taxes |
her railroads. Indeed, the inclusion |
of the bonded Indebtedness as part
of the taxable value of railroad COM
pany is unique, and is often referred
to as the Connecticut method"
Another unique feature of Connecti-
cuts system of taxation. not especial
ly Of corporations, is the so-called |.
'chose-in-action" tax. by which hold
ers of bonds, notes. and other chooses
in action can pay to the state a low
rate of 81 a thousand instead 1
Of the regular local property tax of
about $50.