Los Angeles herald., 1909-06-26

objection of Mr.. Stone the duty on
fuses was fixed at 80 per cent.
On a strong objection by Mr.. Dol
liver the committee amendment fixing
the duty on lead pencils was slightly
decreased to l cent per ounce on black
pencils, IL cents per pound on colored
and 2% cents on copying pencils.
On taking up the schedule relating
to agricultural implements Mr. Bacon
offered his amendment proposing to
place on the free list plows, harrows,
harvesters. forage and feed cutters,
reapers, drills, planters, mowers, horse
rakes cultivators, threshing machines
and cotton gins.
The senate then went into executive
session.
Presidents Plan
President Taft's much-heralded cor
poration tax plan was presented to the
senate by Senator Aldrich and was or
Gered printed as a committee amend
ment to the tariff bill.
If the schedules are completed by
Monday the amendment will be taken
up.
In general form the measure follows
the outline given by the Associated
Press after the conference at the
White House on Tuesday night.
AS drafted by Attorney General
Wickersham and Senator Elihu Root
ment 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 cor
poration, joint stock company or asso-
citation organized for profit having a
capital stock represented by stock, and
every insurance company organized un-
der the laws of the United States and
Of every state, territory or district, and
under the laws of any foreign country
and engaged in business within the
United States.
Every latitude is given to concerns
for exemption of expenses, cost of
maintenance, depreciation of property
debts and the interest thereon, other
forms of taxation and all expenditures
usually taken from earning accounts
Every corporation is also given an
exemption of $4,000 of earnings before
the tax shall apply.
All machinery relating to the collec-
| tion, remission and refund of internal
revenue taxes Is made applicable to the
| corporation tax, and the responsibility
| for the enforcement of the proposed
| law rests with the commissioner of
| internal revenue in the same manner
as other internal taxes.
To Safeguard Data
While the corpora tions are required
to supply intimate information relating
| to their business, provision is made to
safeguard them against wrongful use
of data obtained for the purpose of
assessing the tax. Penalties are pro-
vided in cases of false or fraudulent
returns.
Practically every character of incor-
porated institution organized for profit
is brought within the provisions of the
tax.
The provision defining the concerns
from which the tax will be collected
follows:
THAT every corporation. joint stock
company or association, organized for
profit and having a capital stock rep
resented by shares and every insurance
company, now or hereafter organized
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 Columbia, shall be subject to
pay annually a special excise tax with
respect to the carrying on or doing
business by such corporation, joint
stock company or association or insur-
ance company equivalent to per
over and above $4,000, received by 1t
from all sources during such year, ex-
elusive of amounts received by 1t as
dividends upon stocks of other corpora
| tions, joint stock companies, or aSso-
Citations, or insurance companies sub
ject to the tax hereby imposed or If
organized under laws of any foreign
country upon the amount of net in
come over and above $4,000, received by
it from business transacted and capital
invested within the United States and
/ its territories, Alaska and the District
| of Columbia, during such year, exclu-
sive of amount so received by it as
dividends upon stock of other corpora
tions, joint stock companies, or asso-
Citations, or insurance companies, sub
ject to the tax hereby imposed.
To Determine Income
"Such net income shall be ascertained
by deducting from the gross amount OF
the income of such corporation, joint
stock company or association, or insur-
ance company, from all sources.
"All losses actually sustained within
the year and not compensated by in
surance or otherwise, including a rea-
sonable allowance for depreciation of
property, If any, and in the case of in
suranoe companies the sums required
by law to be carried to premium re-
serve fund
Interest actually paid within the
year on it's bonded or other indebted
ness not exceeding the paid up capital
stock of such corporation, Joint stock
company or association, or insurance
company, outstanding at the close OF
the year.
"All sums paid by it within the year
for taxes imposed under the authority
of the United States or any territory
thereof.
"All amounts received by 1t during
the year as dividends upon stock OF
other corporations joint stock COM
panies or associations, or insurance
companies subject to the tax hereby
imposed.
provided, that in the case of a cor
poration, joint stock company or asso-
citation. or insurance company, organ
lied under the laws of a foreign coun-
try, such net income shall be ascer-
tained by deductins from the gross
amount of it's income from business
transacted and capital invested within
the United States and any of its terri
tories, Alaska and the District of Co
lumbia.
"All the ordinary and necessary ex-
penses actually paid within the year
out of earnings in the maintenance
and operation of its business and prop