The Calumet news. [volume] (Calumet, Mich.) 1907-1938, 1909-12-31
income TAXLAW
GOES IN FORCE
Corporations Will Now Be Re-
quired to Pay One Per Cent
OF Net Income.
UNITED STATES STEEL AT TOP
Total Yield to United States Will
Probably Exceed $25, o,ooo-Ef-
forts Will Be Made to Fight
Law BY Many Companies.
THE BIGGEST TAXPAYERS.

THE BIGGEST TAXPAYERS.
United States Steel Corporation
capital, $1,475,OOO,O 900; amount of tax
$1,SS2,449.
pennsylvania Railroad Company
capital. $915.0OO,OOO; amount of tax
$254,245.
Baltimore and Ohio Railroad Com
pany, capital, sS1O,OOO,OOO; amount o
tax, s174,456.
Union Pacific Railroad Company
capital. s237,OOO,OOO; amount of tax
S295,995.
Sou. Pacific Co., capital, $236, ,OOO.-
900; amount of tax, $276,9S5.
American Telephone and Telegraph
capital, SlSOO0O,OOO; amount of tax
$25S,197.
American Tobacco Company, capital
S1SO,O00,000; amount of tax, $191 ,O2O.
Atchison. Topeka and Santa Fe S219,-
100000; amount OF tax, $24S,6S2.
New York Central, capital, $179, 9,OOO,-
600; amount of tax, $11O,S3S.
| Washington ID. c. Dec. 31.-The in
come tax imposed by act of Congress
passed Aug. s. 1909, becomes effective
tomorrow and is retroactive, provid-
ing for the payment of the tax
for the year ending today. The law
levies tax of l per cent. on the net
income Of all corporations, joint stock
companies, associations and insurance
companies with a net income in ex-
cess of $4,000 annually.
1t is calculated that the tax will
yield to the United States Government
an annual revenue of from $4,000, 900
up. This is only rough figuring, as it
is impossible to get at the exact data
of any corporations but the railroads,
excepting as the corporations have
consented to give information in their
periodical reports. The railroads are
obliged, by law, to file complete re-
ports with the Interstate Commerce
Commission. Under the corporation
tax law all corporations will be re-
quired to file with the Internal Rev
enue Department by March 1 next
detailed statement showing the amount
of their business for the past year.
The United States Steel Corporation |
VIII be the largest contributor to |
Uncle Sans Golfers under the 1 per
cent tax In its report for 1907. which |
Is regarded as a good indication of
what it's present business is, its earn
ngs, upon which the tax could be lev
ed, were $133,244,930 This figure rep
resents the earnings after the fixed
charges, such as interest on bonds,
were deducted. on a basis of 1 per
cent. the steel corporation would pay
4 tax of s1,332,449.
The Standard oil Company, with
It's many subsidiary corporations, will
pay the next highest rate. Standard
he public into its confidence. and to
irrlve at definite conclusion is out
lf the question. wall street figures
hat the new tax will compel the Stan
lard to pay s500,O0O.
There are a score of large corpora
ions which will be Obliged to pay a
AK Of anywhere from 100000 TO
$4,000. Many others will be taxed
rom $4,000 to 100000.
The census of 1906 showed the cap
tal of corporations engaged in manu-
acture at that time to be $10,510,S11,-
05. The growth of corporations for
ne five years prior to 1906 was about
per cent. II is regarded as alto
ether likely that, with the constantly
nproved condition of business
the country il will be
,und, when the census is taken next
ear, that there has been a consider
bly, greater increase than 40 per cent.
yer 1905, even with the set back of
le panic. If this is found to be the
Use the corporation tax yield will be
uch higher than s25.OO0,OOO.
IL is foregone conclusion that !.
renuous efforts will be made to have r.
Ie corporation tax declared unconsti- n
tional. Test cases will be brought =.
st as soon as possible, and one of !,
ese will be carried to the supreme !,
'urt and an expeditions decision ask :,
there. All sorts of corporations are
ling TO fight the measure tooth and ,o
Ill, and are confidently predicting that q,
will be forced to go the way of the ~
come tax law of the Wilson German .,
riff. o.
on the other hand, there arc many :,
no believe the supreme court will .,
stain it. and still others are inclined =.
hope that there will be at least an .,
)iter dictum opinion expressed on
e income tax question. They think r.
at the court cannot well decide the
iestion of the constitutionality of the =,
rporation tax without giving some h,
ne to its present views on the income :,
X or