Norwich bulletin., 1909-07-19
0pP0SES egAPuRA1ION TAx
conprsssnan Eissins Makes Speech in House Urging that Action De Deferred Until December sussest' Stanp Tax.

kf present there is no uniformity n sour tax laws 7lrkrk are as many dif- ferent systems as there gre different states. In Connecticut, for soii1e years there has been no direct state tan. tsat s shst sa. ssste agng ths ass 1sos nssa our total reventle from pli .e,ffces amount Ad tY ab1ut $s;925.4ga:ss, Hph of that Hbbnt $2.faBibbg Was raised from fax1f' ofi various c6fp6rati5nk, Aiid $27s, ,s7g,- 7e from tile collateral and direct n. esfistansa ssEa sssy sys hse ssrses sa railway, insurance, trust eofiiban'es and savings societies now are closely scrutinized and supervised by different commissioners and these corporations are required to make annual reports 10 gfsAt detail All corporations, even tue ii1efcantiie ana misunderstanding, In Gonhectieut, are fsi}iilfea te make afl- nhai reports to the state.
 The reasons urged for a tax upon fhe net eafhitgs 4f e6fBqrations are two- fold: One, to furnish hHaitionff rev enue; two, to compel through the fed- eral taxing power all corporations 10 make returns to the federal govern ment which may be used to aid the federal government in more closely supervising and directing their opera; tlens l submit that no accurate es-
 
 be secured from the hew tariff bill. The present deficit is about sixty mil lion dollars. Congress meets in regu- lar session Decembef next By that l tifne some more certain calculation of the fevenue to be secured from the tariff Bill could be ftia6s; based upon actual operation, than Gan possibly be ] made nov. If the necessity for addia tionaf revenue is so great and the cer- a nj fr f4a hr ct ad f1of will be continuing deheit in our rev. enue while this bill is in f5fse, then l suggest that there need be no depart- ure from well tried revenue producing measures, and we can enact a stamp l tax. We now have the necessary ma- chinefy to collect this tax. It is a tax l ubofl actual frahsaetions and is not an unreasonable burden upon business nor does 1t entail any marked change in commercial transactions or organ | nations:
 l 1 am utterly unable to comprehend l the beheheent result to be obtained from requiring thousands of small cor 1 poratiohs of d mercantile or ffianufac- l turing character which exist all over the country. which secure their right | to do business in the state in which they are located, and are not engaged in interstate or foreign commerce, to make annual returns in such details as are required by the senate amendment to the tariff bill known as the corpora ton tax law.
 1 I shrink from any proposition that | seeks to select a class for taxation. es- | pecially so in times of profound peace and with no other extraordinary occa- | sion demanding 1t. Some of the richest associations of capital in this country do business as a partnership. 1 am | nf ~a ft | one of the New England states which is one of the largest cotton manufac- l turing concerns in this country, if not in the world, but who would escape taxation entirely under this amend
 ment. Under the rules of all the great stock exchanges in this country the members of the exchange must do bus | mess as a partnership. and this ex- l empts large and a rich class from
 the operations of this proposed law.
 It would appear to me to be more
 equitable if such a tax is to be i'm posed to tax the dividends paid rathei
 than the net earnings. Aside iron some constitutional questions that ma, be raised, I cannot upon any principle. of equity understand why bonds shoulC
 be exempted in this amendment. Tn.
 bonds of all corporations are it's bes secured liability.
 This amendment seems to me at thi. time to place too great a burden upor the business of the country without tn, necessity existing and invites evasion
 It discriminates against large class Its consideration by this house ha,
 been too brief to work out the man, intricate questions involved. At thi.
 time, should l get the opportunity,
 am constrained to vote against it. hope to see it continued until Decem.
 Der.