The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1909-06-26
OUTLINE OF TAFPS PLANS FOR
TAX ON EARNINGS OF CORPORATIONS

=, WASHINGTON, June 2b.-President
Tafts much-h -heralded corporation tax
pian was presented TO the senate today
by Senator Aldrich, and was ordered
the tariff bill. II schedules are completed
by Monday the amendment win be
IN. general form the measure follows the
outline. given by the Associated Press
after the conference at the White House
ney General Wickersham and Senator
Root. the measure is believed to he
anendment-prooi and an effort will be
changed 1t will be designated as "the
Taft plan"
The plan imposes a tax OF per cent
upon the net earnings Of every corpora
ton joint stock company or association
organized for profit and having capital
stock represented by shares. and every
laws of the United States or OF any state.
territory or district. or organized under
the laws OF any foreign country and en-
gagged in business within the United
States.
Much Latitude Allowed
Every latitude is given 10 concerns for
exemption OF expenses, cost of mainte
nance. depression OF property. debts and
ton and all expenditures usually taken
from earnings accounts. Every corpora
tlon Ia also given an exemption OF $1,000
of earnings before the tax shall apply.
All machinery relating to the collcc-
ton, remission and refund OF internal
revenue taxes is made applicable to the
corporation tax, and the responsibility
for the enforcement Of tho proposed law
rests with the commissioners OF internal
revenue in the same manner as other i'm
terDal taxes.
While the corporations are required to
supply intimate information relating TO
their business. provision is made TO safe
obtained for the purpose of assessing the
tax. Penalties are provided in cases Of
false or fraudulent returns,
Practically every character of inCor-
porated institution organized for profit is
brought within the provisions OF the
law. The provision defining the concerns
from which the tax will be collected fol-
lows;
Sweeping in Provisions.
THAT every corporation. joint stock
company or association. organized for
profit and having capital stock repre- =
sentad by shares. and every Insurance
der the laws OF the United States or OF
any state or territory OF the United
states, or under the acts Of congress
applicable to Alaska or tho District Of
Columbia. organized under the laws
Of any foreign country or In Alaska or
i'm the District of Columbia, shall be sub
jcct IN pay annually special tax with
respect to the carrying on or doing busi-
ness by suCh corporation, joint stock
company, association or insurance COM
panY. equivalent 10 per ccntum upon
s50On. received by it from all sources
during such year, exclusive Of amounts
received by it as dividends upon stock
OF other corporations, joint stock COM
panies or associations or Insurance. COM
panics subject To the TAX hereby i'm
posed. or If organized under the laws
of any foreign country. upon the amount
of net Income over and above $5no0 re-
ccivcd by IL from business transacted and
capital invested within The United States
and its territories, Alaska and the Dis
triCt OF Columbia. during such year. eN-
elusive OF amounts so received by II as
dividends upon stock OF other corpora .
tions. joint stock companies or asSocia =
tionS. or insurance companies. subject to
the tax hereby imposed.
Basis of Determination.
"Such net income shall be ascertained
by deducting from the gross amount OF