The Wenatchee daily world. [volume] (Wenatchee, Wash.) 1905-1971, 1909-06-26
CORPORATION TAX
PLAN SUBMITTED
THE PRESIDENT SUBMITTED TO
CONGRESS A PLAN TO IMPOSE
TAX ON CORPORATIONS OF
THE NATION.

tax plan was presented to the senate
today by Senator Aldrich and was
ordered printed as committee
amendment to the tariff bill. Il the
schedules are completed by Monday,
the amendment will be taken up.
In general form the measure fol-
lows, the outline given by the Asso-
ciated Press after the conference at
the White House on Thursday night
AS drafted by Attorney General
Wickersham and Senator Root the
measure Is believed to be amendment
proof and an effort will be made to
put it through congress unchanged.
1t will be designated at The Taft
PLAN
The plan imposes a tax of per
cent upon the net earnings of every
corporation, joint stock company or
association organized for profit and
providing capital stock represented
by shares and every insurance COM
pany, organized under the laws of
the United States or of any state,
territory or district, or under the
laws of foreign countries, and en-
gagged in business within the United
States.
Every latitude is given to con-
Germs for exemption of expenses, cost
of maintenance, depreciation of prop
cry, 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 $4,000 OF
earnings before the tax shall apply.
All machinery relating to the coll
lection, remission and refund of in
ternal revenue taxes is made appli-
cable to the corporation tax and the
responsibility for the enforcement of
the proposed law rests with the COM
missioner of internal revenue in the
same manner as other internal taxes.
While the corporations are required
to supply intimate information relat-
ing to their business, provision is
made to safeguard them against
wrongful use of data obtained for
the purpose of assessing the tax.
Penalties are provided in cases of
false Of fraudulent returns.
Practically every character Of in
corporation institution organized for
profit is brought within the provis-
ions of the tax The provision defin-
ing the concerns from which the tax
will be collected follows:
"That every corporation, joint
joint stock company or association
organized for profit and having
capital stock represented by shares
and every insurance company, now
or hereafter organized under the
laws of the United States or any
state or territory of the United
States under the acts of congress ap-
plicable to Alaska or the district of
Columbia or organized under the
laws of any foreign country and en-
gagged in business in any state or
territory of the United States Or in
1 Alaska or in the district of Colum-
bia, shall be subject to pay annually
q special excise tax with respect to
the carrying on or doing business by
such corporation, joint stock COM
pany, association or insurance COM
pany, equivalent to two per cent upon
the entire net income, over and above
$4,000, received by 1t from all sources
during such year, exclusive of
amounts received by it as dividends
upon stock of other corporations,
Joint stock companies or associations
or insurance companies subject to
the tax hereby imposed or if organ
lied under the laws of any foreign
country upon the amount of net in
come, over and above five thousand
dollars, received by it from business
transacted and capital invested with
in the United States and its territor-
les. Alaska and the district of Co.
lumhia, during such year, exclusive
of amounts so received by 1t as div
idends upon stock of other corpora
tions. Joint stock companies or as
sociations or in such companies, sub
iect to the tax hereby imposed.
"Such net increase shall be ascer-
tanned by deducting from the gross
CONTINUED on Page Four.)