The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1909-06-26
CORPORATION
TAX MEASURE
INTRODUCED
THE Taft Plan" Now Before
the Senate as Amendment
to Tariff Bill.
EFFORT WILL BE MADE
TO FORCE IT THROUGH
ATTY. GEN. WicKERSHAM AND
SENATOR ROOT DREW UP
PROPOSED ACT.

Washington. June 25.-President Taft's
much herslded corporation tax plan was
presented TO the senate today by Sena-
tor Aldrich, and was ordered printed as
q committee amendment TO the tariff
bill. If the schedules are completed by
Monday the amendment will be taken up.
In general form the measure follows the
after the conference at the White house
on Tuesday night As drafted by AttOr-
ney General WiCker5ham and Senator
Root the measure is believed to be
and an effort will be
made TO put it through congress un-
changed. II will be designated as the
Taft plan
The plan imposes a tax Of 2 per cent
upon the net earnings of every corpora
ton, joint stock company or association
organized for profit and having a capital
stock represented by shares, and every
insurance 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 the Unit
ed States.
Much Latitude Given.
Every latitude is given to concerns FOR
exemption Of expenses, cost Of mainte-
nance, depreciation Of property, debts and
the interest thereon, other forms of tax
alton and all expenditures usually taken
from earning accounts. Every corpora
ton Is also given an exemption of $500
of earnings before the tax shall apply.
All machinery relating to the collection.
remission and refund of internal revenue
taxes is made applicable to the corpora
ton tax and the responsibility for the
enforcement Of the proposed law rests
with the commissioner of internal reve-
nue. IN the same manner as other inter-
nal taxes
While the corporations are required 20
supply intimate information relating TO
their business, provision is made to safe
guard them against wrongful use of data
obtained for the purpose Of assessing the
tax Penalties are provided in cases Of
false or fraudulent returns.
Concerns to Be Taxed.
Practically every character OF incorpo-
rated 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:
mat every corporation, joint stock
company or association. organized for
Profit and having a capital stock repre-
sented by shares, and every insurance
company, now or hereafter organized un-
der the laws Of the United States or Of
any state or territory of the United States
or under the acts Of congress aDp1icab BILE
to Alaska or the District of Columbia
or organized under the laws of any for
eign 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 10 pay annual
ly a special excise tax with respect 10
the carrying on or doing business by
such corporation. Joint stock comuauv
association, or insurance company. equiv
alent to per centum upon the entire net
income, over and above 5000. received bv
IT from all sources during such year eX-
elusive Of amounts received By &c as
dividends upon stock of other corpora
tons. joint stock companies or assOcia-
lions or insurance companies subject to
the tax hereby imposed. or If organized
under laws of any foreign country, upon
the amount of net income over and above
5000 received by II from business trans
acted and capital invested within the
tnited States and its territories. Alaska
and the District OF Columbia during sucn
year. exclusive Of amounts so received
by it as dividends upon stock of other
corporations joint stock companies or as
sOciatCns. or insurance companies. sub
Ject % the tax hereby imposed.
Net incomes Ascertalned.
such net income shall be ascertaine6
by deducting from the gross amount or
the income Of such corporation, joint
stock company or association or insur-
ance company from all sources;
'AI losses actually sustained within the
year and not compensated by insurance
or otherwise including a reasonable al
lOWance for depreciation Of property. If
any. and I'm the case OF insurance com
panies the sums required by law to De
carried to premium reserve fund
Interest actually paid within the year
on its bonded or other Indebtedness not
exceeding the paid up capital stock Of
such corporation, joint stock company or
association or insurance company, out
standing at the close of the year.
"All sums paid by it within the year for
taxes imposed under the authority Of the
United States OF any territory thereof.
"AlI amounts received BIZ it during the
~
corpora tions. joint stock companies or as
sOciatiOns, or insurance companies sub
isCt TO the tax hereby imposed.
PROVIDED that IN the case Of q cor
poration. joint stock company or associ-
alton or insurance company organized
under the laws of a foreign country SUCH
net income shall be ascertained By de-
Quoting from the gross amount Of its
income from business transacted and cap
ital invested within the United States
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