The midland journal. (Rising Sun, Md.) 1885-1947, 1909-07-02

Per Cent. On All Corporations
Having An Income OF Over $4,000
Many Provisions Made For The
Expenses And Losses Companies
Must Make Annual Report-Esy-
enue Agent May Examine Books
To Verify Statements.
Washington, D. c. Especially -
President Taft's corporation tax
plan was presented to the Senate by
Mr.. Aldrich, chairman of the FL
nance Committee, and was ordered
printed as committee amendment
to the tariff bill.
AS drafted by Attorney General
Wickersham and Senator Root the
measure is believed to be amend
ment-proof. and an effort will be
made to put it through Congress
unchanged 1t will be designated as
the Taft plan" the weight of the
Presidents name being depended
upon largely to encompass it's
enactment.
Briefly stated, the plan imposes a
tax of 2 per cent. upon the net
earnings of every corporation, joint
stock company or association or
ganized for profit and having cap
ital stock represented by shares,
and every insurance company or
ganized under the laws of the Uni
ted 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
Every latitude is given to concerns
subject to the tax for the exemption
of expenses, cost of maintenance, the
depreciation of property. debts and
the interest thereon, other forms of
taxation and all expenditures usually
taken from earnings accounts. Every
corporation is also given an exemp-
ton of $4,000 of earnings before the
tax shall apply.
All of the machinery relating to
the collection, remission and refund
ing of internal revenue taxes IS made
applicable to the corporation tax,
and the responsibility for the enforce
ment of the proposed law rests with
the commissioner of internal reve-
nue. in the same manner as other
internal revenue taxes.
While the corporations are requir-
ed to supply information of a most
intimate character relating to their
business, provision is made to safe
guard them against wrongful use of
data obtained for the purpose of as
sessing the tax Penalties are pro-
vided in case of false or fraudulent
returns.
Practically every character of in
corporated institution organized for
profit is brought within the provi-
sions of the corporation tax. The
provision defining the concerns from
which the tax will be collected is
as follows:
THAT every corporation, joint
stock company or association organ
lied for profit and having a capital
stock represented by shares, and eve
ry insurance company, now or here
after organized under the laws of
the United States or of any state or
territory of the United States, or un-
der the acts of Congress applicable
to Alaska or the District of Column
bia, or organized 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 Columbia shall be
subject to pay annually special ex-
else tax with respects to the carrying
on or doing business by such cor
poration, joint stock company or as
sociation or insurance company
equivalent to per centum upon the
entire net income over and above $5,-
900 received by it 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 ITO
the tax hereby imposed"