Santa Fe new Mexican. [volume] (Santa Fe, N.M.) 1898-1951, 1909-06-25
THE CORPORATION
TAX PLAN
Submitted to Senate
Todayby Finance
Committee
A COMPREHENSIVE MEASURE
Companies With Less Than
$4,000 Annual Earning
Are Exempt.

Washington, June ZJ--fTeSlueHl
Taft's much heralded corporation tax
plan was presented TO the Senate to-
day by Senator Aldrich and was Or
dered printed as a committee amend
ment to the tariff bill. Ii schedules
are completed by Monday the amend
rent will be taken up
In general form the measure fol
lows the outline given by the Associ-
ated Press after the conference at
the White House Tuesday night. AS
drafted by Attorney General Wicker
sham and Senator Root the measure
is believed to be amendment proof
and an effort will be made to put it
through Congress unchanged. 1t will
be designated as the Taft plan"
The plan imposes a tax of per
cent upon the net earnings of every
corporation, joint stock company or
J association organized for profit and
I having a capital stock represented by
shares and every insurance company
organized 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
Tor 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
ings accounts. Every corporation is
also given an exemption of $4,000 of
earnings before the special tax ap-
plies.
All machinery relating to the col
lection, remission and refund of in
ternal revenue taxes is made apple
able to the corporation tax and the
! respc visibility 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, provisions is
made to safeguard them against
wrongful ruse 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.
corporated institution organized from
| profit is brought within the provisions
of the tax.
| The return must set forth.
Il. Total amount of paid up capi.
| tai stock outstanding at the close of
the year. 2. Total bonds and other
| Indebtedness. g.. Gross amount of in
come during the year from all sourc-
es and II organized under the laws of
a foreign country, the gross amount
of it's income, derived from business
transacted and capital invested with
! in the United States. 4. Amount re-
ceived by way of dividends on stock
OF other corporations Or concerns sub
| Ject to the tax. 5. Total ordinary
and necessary expenses actually paid
Of earnings in the maintenance and
operation of the business and proper
| ties and in the case Of foreign COM
| panes the cost of operations in con-
ducting business transacted within
the United States. g. Total losses
actually sustained in the current year
| and not compensated by insurance
or otherwise stating separately any
amounts allowed for depreciation Of
I property; and in the case Of insur-
ance companies the sums required by
law to be carried to premium reserve
fund and in the case of a concern
organized under the laws of foreign
country all losses actually sustained
by 1t in business conducted within
| the United States not compensated
by insurance or otherwise, stating
separately any amounts allowed for
depreciation of property and in the
case of insurance companies the sums
| required by law to be carried to
premium reserve fund and in the case
OF concern organized under the
laws of foreign country all losses
actually sustained by it in business
conducted within the United States
not compensated by insurance or 9th.
erwlse, stating separately any
amounts allowed for depreciation Of
property and in the case of insurance
companies the sums required BY law
to be carried to premium reserve
funds. Z. Amount of interest actu-
ally paid on bonded or other indebted
ness to an amount not exceeding paid
up capital stock, or in case Of a for
eign corporation not exceeding the
proportion of its paid up capital stock
which gross income from business
transacted and capital is vested With
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