Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1909-07-10


stockholders. Mercantile houses banks
mines, stock ranches, theaters, mills
shops. newspapers, abstract and sreal
estate offices. practically every form OF
l business which once was owned and
managed by some firm of two or three
members, is now a corporation and all
would fall under the regulations of this
proposed new law The Republican
argues that since each corporation all
ready paws its share Of taxes the
same as an individual on what it owns.
the newlaW would make it pay doubly
for being a corporation instead of a
firm os individuals ;sand maintains that
not one in ten Of the companies which
would be reached by the new enact
mont arc Of the character included In
the public clamor against overbearing
wealth. .
But these opinions, it is argued are
hastily formed and represent rather the
impatient outbursts at the long delay
and this. somewhat Unsatisfactory shape
which the tariff measure is assuming
than any just estimate OF the merits of
the corporation tax.
The bill as presented in the Senate
places a two per cent tax on the net
earnings of all corporations in excess
of $4,000 per year 1t includes joint
stock companies. and associations. or
sanized for profit and having a capital
stock represented by shares, and all in
@surance companies Also foreign cor
Eorations. TO the extent of their BUSH
ness In the United States, are liable
for the tax. The net income upon
which the tax Is paid is To be ascer-
tanned by deducting from the gross iti-
come of the corporation all ordinary
ald necessary expenses of operation and
maintenance: all uncoinpensated losses
actually sustained during the year; all
interest actually paid within the year
On its bonded. or other Indebtedness not
exceeding the paidup capital stock
~ Fedora or State taxes already paid;
and all amounts received by it as "divi-
Aends upon stockof other corporations
subject to the tax hereby imposed
The Literary Digest failed to find
the opinion of the New York World
.dnd. Dem). which, while not regarding
the proposed tax as a 3perfect one, yet
says of the Presidents measure: that
ITO call this measure far-reach-
ing step i'll the direction of centralized
Federal control of all the business OF
the countryis ridiculous. The govern
ment undertakes to control nothing ex-
cept its own revenue. No rules and
are prescribed for the con
duct Of any mans business No at
tempt IS made to classify corporations
as good or bad. and to exclude from
interstate commerce any business that
does not measure up to the moral stand
ards of some enlightened bureaucrat.
There is no Federal-license lunacy
about the measure. and no stretching
out toward a national incorporate
law. |
The government merely levies tax,
and by way Of collecting that tax it |
sworn statements from the |
affected. New York City |
tnkes almost the same steps in coll
Letting personal taxes from individuals.
the assessment levied against him. he |
must make a sworn statement as to
lie money he has in the bank, the
1bnds and MORTGAGES lie owns, his debts,
md all property liable to this tax Yet
we have never heard New York's Per-
sonal Tax law denounced as a scheme
to enable the State to regulate every
mans private business
The opinions are divided. All forms
of taxation are, Of course, objection
able TO someone. The most that can be
hoped for is to find the form that is
east Questionable to the greatest num-
Der of Taxpayers.