The Montgomery advertiser. [volume] (Montgomery, Ala.) 1885-1982, 1909-06-26
Ordered Printed as an
Amendment.
FOLLOWS OUTLINE GIVEN
FROM THE CONFERENCE
The Plan Imposes q Tsxeef . Per Cent
Il Upen the Net Earnias. se
Every corperatiea no.
inx Buriness.

Washington. ID. c.. June U.s.
President Taft's much heralded corr.
poration tax plan was presented 10 the
Senate today by Mr.. Aidrich. chairman
Of the finance committee. and was
ordered printed as committee amend
ment TO the tariff bill II schedules
are completed By Monday the corr
poration tar amendment will then be
taken up and held before the Senate
until final disposition Ia made OF II ana
OF amendments on the subject OF q
direct tax on incomes.
J In general form the corporation tax
measure follows the outline given by
the Associated Press after the CONFER
ence at the White House on Tuesday
night when the subject was considered
by the president. lawyers OF his cabi-
net and Senate and House Republican
leaders AS drafted by Attorney Gem
eral Wickersham and senator Root tha
measure is believed to be amendments.
proof ana an effort will be made to put
IT through congress unchanged. II
will be designated as "the Taft plan"
the weight OF the presidents name be-
ing depended upon largely to erconi-
pass Its enactment
bfte4iy btAtSus Suo pan lmponen TAX
OF 2 per cent upon the net earnings OF
every corporation. joint stock cofil-
pany or association. organized for
profit and having q capital stock
represented by shares. and every insur-
ance 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 tho
United states
Every latitude is given 20 concerns
subject 70 the tax for exemption Of
the expenses. cost OF maintenance. the
depreciation OF property. debts and tho
interest thereon. other forms Of taxa
ton and all expenditures usually taken
from earnings accounts Every cpr-l
poration IL also given an exemption
of $4,000 % EARNINGS before the tax
All q the machinery reistIhs 10 ths
collection. reinisHion and refund 81
Internal revenue taxes Is made ap-
plicable 70 the corporation tax and
the responsibility for the enforcement
OF the proposed law rests with tha
Commissioner OF Internal Revenue In
the same manner as other Internal
taxes.
While the corporations are required
to supply information of most ints-i
mate character relating to their busi4
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.
All Brought Wtthin Provision.
Practically every character OF In
corporated institution organised for
profit is brought within the provisiona
OF the corporation tax. The provisions
defining the concerns from which the
tax will be collected is as follows:s
That every corporation. Joint stock
company or association. organized for
profit and having q capital stock
represented by shares. and every In
surance company. now or hereafter orr
gained 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 or
the District of Columbia, 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 Column
bia, shall be subject TO pay annually
q special excise tax with respect to
the carrying on or doing business by
such corporation, Joint stock company
or association or insurance company,
equivalent to two percentum upon thu
entire net income over and above five
t1OuUAn1 QOll6Tbe T0CElNEU DY " kTQul
all sources during such year. exclusive
OF amounts received by It as dividends
upon stock OF other corporations. Joint
sfoek companies or associations, or In
surance companies subject 70 the tax
hereby imposed. or IL organized under
the laws OF any foreign country. upon
amount OF net income. over and above
5000. received by it from business
transacted ami capital invested within
49, YTntfa1 GfatAa and lfa fRFFff0rfAu
Alaska and the District Of Columbia.
during such year. exclusive of amounts
SO received by II as dividends upon
stock OF other corporations. joint stock
companies or associations, or insur-
ance companies. subject to the tan
hereby imposed. -
s'Such net income shall be aAcertain-
amount OF the income of such corpora
taons, Joint stock company or associa-
tion, or insurance company from all
sources.
"AH the ordinary and necessary en-
penses actually paid within the year
out of income In the maintenance ana
operation OF it's business and proper
ties.
"AIl losses actually sustained within
the year, and not compensated by In
surance or otherwise, including q
allowance for depreciation
OF property, II any. ana In the case OF
companies the sums required
by Iaw to be carried to premium re-
serve fund.
interest actually paid within the
year on its bonded or other indebted
ness exceeding the paid up capital
stock of such corporation, joint stock
company or association. or insurance
company outstanding at the close OF
the year.
for taxes imposed upon the authority
Of the United states or of any state OF
territory thereof.
..All amounts received by II within
the wear as dividends upon stock oe
other corporations. Joint stock corn-
pantes or associations. or Insurance.
companies. subject to the tax hereby
imposed
aProvided that In the case OF a COR
poration, joint stock company or as
ton, or insurance company, or
Eanized under the laws OF a foreign
country In which such Income shall
be ascertained by deducting from the
gross amount Of its income from busi-
na.s transacted and capital inveSkad