The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1909-06-26

N'>'''S~~ 'S'' " % 1SS'
will be reopened tomorrow.
The principal debate was on petrO-
leum, linoleum, and scrap iron pro-
visions. Crawford, speaking of the
high rate on pig iron said it was
protection gone mad"
TAX PLAN SUBMITTED.
President Taft's much heralded
corporation tax plan was presented
to the senate today by Mr.. Aldrich,
chairman of the finance committee,
and was ordered printed as a COM
mittee amendment to the tariff bill.
If the schedules are completed by
Monday, the corporation tax amend
ment will then be taken up and held
before the senate until final DISPOSE
tion is made of it and of amendments
on the subject Of a direct tax on in
comes.
In general form the corporation tax
measure follows the outline given by
the Associated Press after the con-
ference at the White House on Tues
day night, when the subject was con-
Sidered by the president, lawyers Of
his cabinet and senate and house rep
republican leaders. 1t was drafted by
Mr.. Wickersham and Senator Root.
The measure is believed to be amend
ment proof and an effort will be made
to put 1t through congress unchanged.
It was designated as 'the Taft plan"
the weight of the presidents name
being depended upon largely to en-
compass Its enactment.
ON ALL CORPORATIONS.
Briefly stated, the plan imposes a
tax of per cent upon the net earn
ings of every corporation, joint stock
company or association, organized
for profit and having a capital stock
represented by shares, and every in
Surance company organized under the
laws of the United States, or of any
state, territory or district or organized
under the laws of any foreign country
and engaged in business within the
United States.
Every latitude is given to concerns
subject to the tax for exemption of the
expenses, cost of maintenance, the de-
probation Of property debts and the
interests thereon, other forms Of tax
alton and all expenses usually taken
from earnings accounts. Every cor
poration is also given an exemption
of SIS 900 of earnings before the tax
shall apply.
All of the machinery relating to
the collection, remission and refund
of internal revenue taxes is made ap-
pliCable to the corporations tax, and
the responsibility for the enforcement
of the proposed law rests with the
commissioner of revenue in the same
manner as other internal taxes
While the corporations are required
to supply information of most 1ntl-
mate character relating to their bust
ness, 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 or fraudulent returns.
Practically every character Of incor-
porated institution organized for
profit is brought within the provisions
of the corporation tax. The provision
defining the concerns from which the
tax will be collected is as follows:
INSURANCE COMPANIES.
That every corporation, joint stock
company or association, organized for
profit and having a capital stock rep
resented by shares, and every lnsur-
auce company now or hereafter or
ganized under the laws of the United
States or of any state or territory OF
the United States, or Undet the acts
of CONGRESS applicable to Alaska OF
the District of Columbia, or org lnizf
under the laws of any foreign country
and engaged in business in any state
or territory of the United states or
in Alaska or in the District OF Column
bia, shall De SUBJECT 10 pay dLnudIig
a special excise tax with respect TO
the carrying on OF doing business by
such corporation, joint stock company
or association or insurance company,
equivalent to two peTcentum of the
entire net income over and above five
thousand dollars received by 1t from
all sources during such year, eXclu-
sive of amounts received by it as
dividends upon stock of other COTpo-
ratiOns. joint stock companies or as
sociauiOns. or insurance companies
subject TO the tax hereby imposed or
if ORGANIZED under the avs OF any
foreign country the amount of net in
come over and above fiye thousand
dollars. received by it frOu2 business
transactions and capital invested
within the I. s. and its territories.
Alaska ard the District Of Columbia.
during such year, exclu:=-N { of amounts
so received by il as dividends Ipcn
stock of o nCT corporations, Joint stOcF
companies or ASSOCIATION, or insUr-
ance COMPANIES, subject to the tax
hereby imposed.