The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1909-06-26
TAFT TAX PLAN
TO BE ATTACHED
TO TARIFF BILL
Aldrich Presents Corporation
Revenue Proposition to
the Senate
Furnishes Companies for Fraud
and Collectors for Be
travail of Secrets

WASHINGTON, June 25.-President
Tafts much heralded corporation tax
plan was presented 20 the senate today
by Senator Aldrich. and was ordered
printed as q committee amendment to
the. tariff bill. II schedules are COM
pleted by Monday the amendment viii
be taken up.
As drafted by Attorney General
KTin81ersham and Senator Root the
measure is believed 20 be amendment
proof and an effort viii be made to
put 1t through unchanged 1t viii
be designated as The Taft Plan"
The plan imposes a tax Of per cent
On the net earnings OF every corpora
ton. Joint stock company or assoeia-
ton organized for profit and having
a capital stock represented by shares,
and every insurance company organ
lied under the laws Of the United
states or Of any state, territory or
district, or organized snder the laws
OF any foreign country and engaged in
business within the United States.
Every latitude is given 10 concerns
Tor 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 eX-
emptiOn Of $1,000 Of earnings before
The tax shall apply. All machinery
relating 10 the collection. remission
and refund OF intersl revenue taxes
is made applicable to the corporation
forcing the law rests with the COM
missioner Of internal revenue.
PENALTIES FOR FRAUD
While the corporations are required
10 supply intimate information relat-
inE 10 their business. provision IS made
10 safeguard them against wrongful
use OF dat obtained for the purpose
~ assessing the tax. Penalties are
provided in cases OF false or fraudulent
returns.
The provision defining the concerns
from which the tax viii be collected
follows
Tast every corporation. joint stock company
or association. organized FOR profit and having
capital stock represented 10y shares, and
every insurance company. now or hereafter
organized under The laws of the United States
on ri any state or territory OF rbe United
states or under The acts Of congress applicable
to Alaska OF the District OF Columbia
and engaged il business Ia aBv state or terri
Tory of The United States or ia Alaska or in
the District 90 Columbia. shall be- subject to
JAY annually special excise fax with respect
TO The carrying or doing business by such
corporation i0int stock company. association
or insurance company, equivalent 10 per
cenfum the entire mel income. over and
above 5000 received by III from all sources
during such year. exclusive of amounts re-
ceived by It as dividends On stock Of other
corporations, joint stock companies or associa-
lions or insurance companies subject TO the
tax hereby Imposed or if organized under
laws Of any foreign country on the amount Of
net income over and above 50. 600 received by
IL from business transacted and capital in
vested within the United States and its terri
tories. Alaska and the District Of Columbia
during such year exclusive OF amounts SO re-
ceived by 81 dividends on stock OF other
corporations. joint stock companies or asso-
Citations insurance companies. subject 10 the
tax hereby imposed.
Such net income shall be sscerfained By
deducting from the gross amount Of the income
Of such corporation, joint stock company
OF association or Insurance company from all
sources:
LOSSES PROVIDED FOR
An losses actually sustained within the year
and not compensated by insurance or otherwise,
including reasonable allowance for deprecia-
fion Of property II any, and in the case Of in
sursnce companies the sums required by law to
be carried 70 premium reserve fund
Interest actually paid within the year on its
bonded or other indebtedness not exceeding the
paidup capital stock OF such corporation joint
stock company or association or insurance
company outstanding al the close OF the year
All sums paid by 1t 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 on stock Of other corporal lions
joint stoek companies Or associations or insur-
ance companies subject to the tax hereby i'm
posed
Provided that in the case Of corporation.
joint stock company or association OF insur-
Ence company. organized under the laws of q
foreign country, such net income shall be as
eertsined by deducting from the gross amount
Of its income from business transacted ana
capital invested within the United States and |
any Of its territories Alaska aud the District /
OF Columbia.
All the ordinary ana necessary expenses act |
ually paid within the year ont Of earnings in |
the maintenance and operation Of fte business ]
and property within the United States and lis /
territories, Alaska and the District Of Column |
bia-
All losses actually sustained, within the year |
IN business conducted by it within the United
A States, not compensated by insurance or other
wise, including reasonable allowance for /
depreciation OF property, and in the case of |
insurance companies the sums required bv law
10 be carried 70 premium reserve funds
Interest actually paid within the year on |
its bonded or other Indebtedness 10 an amount /
OF such bonded end other indebtedness moi ex |
ceeoing the proportion Of its paid up capitsl
stock outstanding at the close Of The year /
which the gross amounts Of its income for the |
year from business transacted and capital in |
vested within the United States and any of ITS /
territories, Alaska and the district Of Column /
bis. bears 10 the gross amount Of its income 1
derived from al sources within and without /
the United States.
OTHER DIVIDENDS EXEMPT
The sums paid by IT within the wear for 1
taxes imposed under the authority Of the /
United States, or Of any state or ferrf*orv i
thereof. All amounts received By II within
TIE year as dividends upon stock Of other cor
pOrations, joint stock companies or associa-
tons and insurance companies, subject TO the /
tax hereby imposed II is provided that there
shall be deducted from the amount Of the net /
income Of each corporation, subject TO the tax
the sum Of $1,000, the tax being computed
uDOn the remainder. Every concern subject TO
the tax Is required, on or before March ] Of /
each year. 10 make q true and accurate re-