The Newark star and Newark advertiser. [volume] (Newark, N.J.) 1909-1909, 1909-06-26

WASHINGTON, June 2s.-President
Taft.s corporation lax plan was pre-
sented to the Senate at { O'Clock last
night by Mr.. Aldrich, chairman of the
finance committee.
AS drafted by Acknowledgement
wiokersham and Senator Root, the
measure is believed to be amendpent
proof. 1t win be designated the TAFT
plan" the weight of the Presidents
name being depended upon largely 10
force its enactment,
Mr.. Aldrich expressed the hope that
the tariff schedules would be completed
on the morrow 50 that consideration
Of the corporation tax amendment could
begin ON Monday.
Briefly. the plan imposes a tax OF :
rer cent. upon the net earnings OF
every corporation in business within
the United States.
The provision defining the concerns
from which the tax will be collected is
as follows:
Who Must Pay.
''Every CORPORATION ' > shall DC SUD
feet to pay annually a special excise tax
with respect to the carrying on or ooHhe
business by such corporation. etc. etc.
equivalent to two per centum upon the en-
tire net income. over and above five thou
sand dollars, received by 1t from all
sources during such year, exclusive or
amounts received by 1t as dividends upon
stock of other corporations, joint stock
companies or associations. or insurdhce
companies subject to the tax hereby I'M
posed, or IL organized under the laws OF
any foreign country upon the amount OF
net income, over and above five thousand
dollars. received by 1t from business trans
acted and capital invested within the Uni
ted States. exclusive Of amounts so re-
ceived by 1t as dividends upon stock OF
other corporations, joint stock companies
or associations, or insurance companies,
subject to the tax hereby imposed.
How Tax Is Ascertnined.
..Such net income shall be ascertained
by deducting from the gross amount of the
income of such corporation, joint stock
company or association or insurance com
uany from all sources:
'Ail the ordinary and necessary expenses
actually paid within the year.
..Al losses actually sustained within the
year. and not compensated by insurance
or otherwise, including a reasonable al
lowance for deprecia ton of property.
.
interest actually paid within the year
on its bonded or other Indebtedness not
exceeding the paid-up capital stock OF
such corporation. :
IAN sums paid by it within the year
for taxes imposed under the authority OF
the United States or of any State or
territory thereof.
IAN amounts received by it within the
year as dividends upon stocks OF other
corporations.
Expenses Are Deducted.
"AH the ordinary and necessary ex-
penses actually paid within the year out
Of earnings in the maintenance and opera
tion of its business and property within
the United States, etc.
'Ail losses actually sustained within
the year in business conducted by IL
within the United States not compensated
by insurance or otherw Sc, etc.
Interest Actually paid within the year
on It's bonded or other Indebtedness to an
amount of such bonded and other indeht-
eeness not exceeding the proportion of its
paid-up capital stock outstanding Mt the
close Of the year which the gross amount
of its income for the year from business
transacted and capital invested within
tthe United States. etc. = bears to
TIE gross amount of it's income derived
from all sources within and without the
United States.
The sums paid by Il within the year
for taxes imposed under the authority
OF the United States or of any State or
territory thereof.
Every concern subject to the tax is
required on or before March l of each
year, to make a true and accurate re-
turn. under oath.
The commissioner is empowered to
designate any regularly appointed