The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1910-05-13
TAXING BUSINESS CONVENIENCE.


orr friend Royal T. Cabell is busily
counting the returns for the corpora
tion tax assessment, and IL he have
not yet rounded up all the maverick
concerns, he has enough to insure a
large return to the Government from
since the tax became operative, 2t9,oa2
returns have been received by Mr..
j Cabell, yielding total collectible tax
4 of s25.s6S,9S6. OF this sum. New York
City reports si,35I641, though hun
tlreds of corporations in that city have
4 refused TO make returns while wait
ing the decision of the courts as to
the constitutionality of the law as
sessing the tax From the Eastern
District OF Virginia 1873 returns have
been received, covering assessments of
s23e,457l7. and from the Abingdon
District 1,327 returns have been sent
in for total of sfos5s4.3o
Twenty-six million dollars is a
heavy tax on business and s345,ooo is
heavy tax on business in Virginia,
especially when it is levied by tan
which is unwise, IL constitutional, and
unjust, If unconstitutional. Looking
only at the amount assessed in this
State. ii seems unfair and most un-
reasonable that the Government should
assess the corporations Of this State
tax that,is three times as heavy as
the income tax levied by the State or
all citizens In other words. par
will pay three times as much fol
the mere conduct OF an incorporated
business as they and their business
associates and all other good men pa,
the state from their gross incomes
However, the tax has not yet beer
collected and we hope it will not be
1t certainly will not be, if the rea.
soning of the courts which hear the
appeals, follows that of the best law
yers in the country. 1t is hard to see
how any court viii uphold the law.
1t is a tax not on business, not on a
franchise. but on doing a certain amount
Of business in a certain way. The ac
does not say that every merchant shall
pay percentage tax on his profits o
his sales. 1t does not require tina
every furniture maker, or every grocer
shall pay the tax; it merely says tina
the tax shall be levied on the proceed
of business done by an incorporated
concern. The tax is, therefore, q ia:
upon a business conveniencc--incorpo
ation-which the Federal Government
cannot grant and which it cannot con.
troll in any way.
Altogether apart from the probable
unconstitutionality of the tan. it is
not only says that business men. of
all classes, shall pay tax but it dis
tinguishcs within the class. and says
that certain bust~ess ni.an shall pay a
tar while Others Conducting precisely
the same business, in a somewhat diff
ferent way. shall be exempt from tax
alton. 1t is hard TO say which is
worse, for, while the tax on business
puts a burden on the men engaged in
b
business, a tax on one form of bust
ness and not on another gives one man
a, decided advantage over another.
On principle, we favor direct taxes
We believe that they are. in the end
much lower and much more Justly as
sessed than indirect taxes. At the Yer,
least, the fun amount of tax directl,
assessed goes TO tho Government
while under an indirect tariff tax, tn
Government receives perhaps third
While the protected American pro
Queer receives The benefit Of the othe
two-thirds Yet If direct taxes are t
be levied, they should be levied in jus
tice to all, and irrespective of class
a direct class tax is little better tina
general indirect tax,
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HOW TO LEND TO THE LORD.