Albuquerque citizen. [volume] (Albuquerque, N.M.) 1907-1909, 1909-06-26
MAY Be DISCUSSED
BY SENATOR'S MONDAY
1t Provides for Tax CT TWO Per
Cent on Net Earnings of All
Corporations for Profit
With Incomes of
Over 5000.

washington, June ZOs--fFeSlutHt
Tatts much heralded corporation tax
plan was presented to the Senate late
yesterday by senator Aldrich ana was
ordered printed as committee am
endment to the tariff bill If scheI-
ules are completed by Monday, the
amendment will be taken up.
In general form the measure fol-
lows the outline given by the Asso-
ciated Press after the conference at
the White House Tuesday night. AS
drafted by Attorney General Wick
ersham and Senator Root, the meas
ure is believed to be amendment
proof and an effort will be made to
put il through Congress unchanged.
1t viii be designated as "the Taft
plan"
The plan imposes tax of per
cent upon the let earnings of every
corporation, joint stock company or
association organized for profit and
having CAPITA stock represented by
shares and every insurance company
organized under the laws of the Uni
ted states or of any state. territory
OF 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
Cor the exemption of expenses, cost
of maintenance. depreciation of prop
erty, debts and the interest thereon,
other forms of taxation and all ex-
penditures usually taken from earn
irgs accounts. Every corporation is
also given an exemption of $1,000
i,I
plies.
All machinery relating to the COZ
lection, remission and refund of in
ternal revenue taxes is made applica-
BILE to the corporation tax and the
responsibility for the enforcement of
the proposed law rests with the com
missioner of Internal revenue in the
same manner as other internal taxes.
While the corporations are required
to supply intimate information relat-
ing to their business, provision IS
made to safeguard them against
wrongful abuse of data obtained for
the purpose of assessing the tax. Pen
alties are provided in cases of false
or fraudulent returns.
Practically every character of in
corpo,ated Institution organized for
proht is brought within the provisions
of the tax The provision defining
the concerns from which the tax will
be collected follows;
Provisions of Plan.
That every corporation, joint stock |
company or association, organized 70: |
profit and having capital stock rep !
resented by shares and every insur- |
ance company now or hereafter Or |
gauized under the laws of the United /
States or of any state or territory of |
the United states or under the acts !
of Congress applicable to Alaska ~
3hc District of Columbia, or organized |
under the laws of any foreign coun- |
try ard engaged in business in any |
state or territory of the United States |
or i'm Alaska or in the District OF |
Columbia shall be subject to pay an |
nuaIly a special excise tax with re-
spect to the carrying on or doing bus
mess by such corporation, joint stock |
company, association or insurance
company, equivalent to two per cent
on the entire net income over and .
above $1,000, received by il from all |
sources during such year, exclusive or
amounts received by ii as dividends /
upon stock o. other corporations,
joint stock companys or associations,
or insurance com mpanies subject to tne !
tax hereby imposed or if organized !
under the laws Of any foreign cOun- |
try upon the amount of net income
over ana above 5000 received from
business transacted and capital in !
vested within the United states AM !
its territories, Alaska and District OF |
Columbia, during such year, eNclu- |
sive of amounts so received by it as
dividends upon stock of other cor
porations, Joint stock companies or
Associations or Insurance companies |
subject to the tax hereby imposed. !
"Such net incomes shall be ascer-
tained by deducting from the gros,
amount Of the income OF such cor
poration. joint stock company or as
scciatlon, or insurance company from
all sources:
IAN losses actually sustained with
in the year and not compensated by
insurance or otherwise, including a
reasonable allowance for depreciation
Of property if any, and in the case OF
ir rriranGe companies the sum requir-
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Ssc, Continued on Page FOur.l