Bisbee daily review., 1910-01-04
F|VEE MILLIONS. FROM INCOME
 TAX EXPECTED
Has Gone Info Effect and Is Retroactive Over the Year Just Ended--Huge Capital Is Concerned.

WASHINGTON. D. C.. Jan. g.
 The income tax imposed by ac. oi
 congress passed August 5. 1909. be-
 came effective Saturday and Is ret
 roactive. providing for the payment
 of the tax for the year ending Friday.
 The law levies a tax of 1 per cent on
 the net income of all corporations,
 joint stock companies. associations
 and insurance companies with ne,
 income in excess of 5000 annually.
 IL is calculated that the tax will
 yield to the United States govern.
 ment an annual revenue of from s5.-
 OOoo0O up. This is only rough flgur- s ing. as it is impossible to get at the g exact data Of any corporations but the railroads, excepting as the cor
 porations have consented to give in
 formation in their periodical reports.
 The railroads are obliged. by law, to
 file complete reports with the Inter-
 state Commerce Commission. Under the corporation tax law all corpora. tions will be required to file with the Internal Revenue Department by March 1 next a detailed statement showing the amount of their business for the past year.
 The United States Steel Corpora ton will be the largest contributor to Uncle Sans coffers under the 1 per cent tax. In its report for 1907, which is regarded as a good indica- tion of what it's present business is, its earnings. upon which the tax could be levied. were s133.244 930. This figure represents the earnings after the fixed charges. such as in- l terest on bonds. were deducted. On a | basis of per cent the steel corpora tion would pay a tax of sI,S32,449.
 The Standard Oil company. with its many subsidiary corporations, will | pay the next highest gate Standard | oil does not make a habit of taking the public into its confidence, and to arrive at a definite conclusion is out of the question. Wall street figures that the new tax will compel the Standard to pay $50O.OOO
 There are a score of large corpora lions which wiH be obliged to pay tax of anywhere from s1OO.OOO to S850.0oo. Many others will be taxed from S5O,OOO to s10OOOo.
 The census of 1905 showed the can ital of corporations engaged in man. ufacture at that time to be slO.5lO. | S11.305. The growth Of corporations | for the five years prior to 1905 va. about 40 per cent It is regarded as altogether likely that. with the con. stantly improved condition of bust | ness throughout the country it will be | found. when the census is taken next year, that there has been a consider | ably greater increase than 70 pel cent over 1905, even with the set back of the panic. If this is found to be the case the corporation tax yield will be much higher than s25.0O0. GOO.
 It is a foregone conclusion that strenuous efforts will be made to have the corporation tax declared un- constitutional Test cases will be brought just as soon as possible, and one of these will be carried to the supreme court and an expeditions ce- cision asked there. All sorts of cor porations are going to fight the meas ure tooth and nail, and are confident ly predicting that it will be forced to go the way Of the income tax law of the Wilson-Gorman tariff.
 On the other hand. there are many who believe the supreme court will sustain it. and still others are inclin- ed to hope that there will be at least an obiter dictum opirion expressed on sashe income tax question. They think that the court cannot well de- eide the question of the constitution ality of the corporation tax without giving some clue to it's present views on the income tax