The Washington times., 1910-03-15
ALARMED
BY PROPOSED TAX
Fear They May Be Required
TO Pay Six Per Cent
on Deposits.

Representative Smith has introduced a
measure providing for an amendment TO
the act making appropriations for the
expenses of the District of Columbia,
affecting banks, gas. telephone and tele-
graph and trust companies as well.
The amendment was reported favor
ably from the Committee Of the Whole
to the House
The chief feature OF the bill seems to
be in the changing OF the wording Of
gross profits 10 gross receipts
ANY tax on gross receipts in the
full meaning Of the term would spell
disaster TO the banks and worry other
corporations" said a banker today.
The amendment says plainly:
Shall make affidavit Of the amount
or Its or their gross receipts for the
preceding year ending June 80. etc"
Amendment in Full.
Here is the amendment:
Strike out all after the enacting clause
and insert the following;
That paragraph of section 8 OF the
act OF Congress approved July J. 1902.
entitled An act making appropriations
10 provide for the expenses Of the gov
ernment Of the District Of Columbia for
the fiscal year ending June 90, 1g,s. and
for other y, rpOses,' be, and the sane il
hereby, amended so as TO read as fol-
lows:
Paragraph s. Each national bank
as the trustee for its stockholders.
through its president or cashier, and
all other Incorporated banks and trust
companies, In the District Of Columbia,
through their presidents or cashiers, and
all gas. electric lighting telegraDh and
telephone companies. doing business iE
the District Of Columbia. through their
proper officers, shall make affidavit 10
the board Of personal tax assessors on
or before the 1st day of August each
year as 20 the amount Of fits or their
gross receipts for the preceding year
ending the j0-h day Of June, and shall
pay 10 the collector OF taxes OF the Dis
rict Of Columbia per annum on such
gross receipts as follows. Each national
bank, and all other Incorporated banks
and trust companies. respectively, per
cent, each gas company, 8 per cent.
each electric lighting. telegraph and
telephone company. 4 per cent. And in
addition thereto the real estate owned
by each national or other Incorporated
bank, and each trust. gas. electric light
ing, telegraph, and telephone company
In the District Of Columbia shall be
taxed as other real estate IN said Dis
trict: Provided, that street railroad
companies shall continue 10 pay the 4
per cent per Gnnum on other gross re-
CeiptS and other taxes as provided by
existing law. and Insurance companies
shall continue 70 pay the IL per cent
on premium receipts, as provided By
section 60 Of the code Of the District Of
Columbia. That 90 much OF the act ap-
proved October !, 1890, entitled An act
10 provide for the incorporation Of trust
loan, mortgage. and certain other cor
pOrauOns within the District of Column
bia as IS inconsistent with the pro
visions Of this section IS hereby re-
pealed-
What Gross Receipts Include.
Gross receipts Of a banking inBtitu-
ton would include every dollar taken
through the teIler's windows; every dol
lar paid on notes and every dollar paid
for drafts and collections. 4 S per cent
personal tax on this would be conhsca-
tCry, say Washington bankers, who de-
clare, One months tax would con-
sunle years profits"
Cross earnings" net earnings
'prOfts,' etc, are terms generally used.
Il looks az If an error had been made
and that gross earnings were intended
instead Of gross receipts. is the ex-
preston in financial circles.
National banks are now taxed four
times One per cent corporation tax s
per cent personal tax. y Of 1 per cent
on circulation. and IL per cent on real
estate Rents are taxed twice in the
personal tax Of the District and in the
net profit corporation tax.