The Washington herald., 1909-06-26

/ A
Senate last evening just before ad-
journment by Senator Aldrich in
behalf Of the Committee on Fl
nance.
AT the suggestion OF Mr.. Al
drich, the consideration Of the
amendment went over until Mon
day, Mr.. Aldrich explaining that
the Senate would probably COM
plete the consideration Of the free
list and all the schedules Of the
tariff bill to-day, thus leaving the
way clear for debate and action on
the corporation tax proposition.
IN answer 70 question by Senator
Nelson. ne said that the committee was
preparing to report a Joint resolution
submitting 10 the States the question o.
amending the Federal Constitution. so
that Congress might enact an income tax
law without going contrary 20 the opinion
OF the Supreme Court
Between now and Monday there viii
be lining up Of the forces in the Senate
in favor OF enacting income tax legisla-
ton az this time. and In favor OF the
adoption Of a corporation tax amend
ment as a substitute for the amendment
10 impose an income tax.
Still Have Hope.
The advocates OF the income tax have
practically thrown up the sponge but are
SIN making a valiant effort TO furnish. a
strong showing in the hope that some
thing may occur 10 bring victory to their
side.
The followers Of the Finance Commit
tee in its advocacy OF the corporation
tax are holding together. and there IL no
reason 10 doubt that the leaders are
confident this proposition viii 90 through
and the income tax amendment be de-
feated.
The amendment reported from the
Finance Committee by Senator Aldrich
provides Tor the imposition on every cor
poration. joint stock company or asso-
citation. or insurance company OF a tax
amounting 10 per cent Of its entire net
income over and above 5000. exclusive
OF amounts received by Il as dividends
upon stock Of other corporations subject
70 the tax Itself
Foreign corporations doing business in
the United States are TO pay the tax on
the income derived from business tran
sacted within the States.
Provisions for Determining Tax.
Provision is made FOR ascertaining the
amount Of net income Of a corporation.
From the gross income deductions are to
be made OF the expenses for maintenance
and operation, losses actually sustained.
and not compensated by insurance. IN
cluding a reasonable allowance for de-
probation, and IN case Of insurance com
panies the sums required by law 70 be
carried 10 the premium reserve fund: in
terest paid on bonded or other indebted
ness over and above the paid-up capital
stock OF the corporation. all sums paid
for taxes. all amounts received as divi-
dends upon stock OF other corporations
which have been subjected to the same
tax
The first assessment OF the tax Is 70
be for the current calendar year. and for
each calendar year thereafter. Before
March l OF each year a return under
oath or affirmation is to De made by the
president. the vice president, or other
m
sistant treasurer, Of the income received
by It in the year, this return to be sub
mitted 10 the collector OF internal reve-
nue. for the district in which the cor
poradon has It's principal place OF busi-
ness.
Full Report Required.
The return Is TO include the total
amount Of the paid-up capital stock OF
the corporation outstanding at the close
Of the year. the bonded Indebtedness. the
gross income. the amount OF dividends
received from other corporations. the
amount OF expenses, the amount Of
losses. including depreciation OF proper
". and the premium reserve fund: the
amount of interest paid on bonded or
other indebtedness on an amount over
and above the paid-up capital stock OF
the corporation, the amount paid for
taxes. and the amount Of net income
Whenever the Commissioner Of Internal
Revenue obtains evidence that the return
OF the corporation is incorrect, or when
ever the corporation has failed to make a
return as required by law. the Commits
sioner may require the corporation to
furnish him with further Information.
The Commissioner is authorized 10 ex-
anime books ard papers bearing on the
matters required TO be included in the
return OF the corporation, and 70 take
testimony The Commissioner may also
invoke the aid OF any United States court
Continued on Page 2, Column 8.