New-York tribune., 1912-03-02

the cornoratIon tax was constitutional,
they decided that the Congress has the
power to levy special excise tsH on 'no
doing OF all business by corporations. A..
The purpose of the bill presented 10 tnS
| caucus is TO extend the tax on dong OIL
! business by individuals and copa,,r'hec p,, a-
ships, The special ,;,s excise TAX wonid ND have
been accomplished by an income taA u ~ =.
were within the power OF congress W -
enact an income tax law SO far as ia,s,no s,,o =
| the revenue is concerned, but at the SAM
| time the bill keeps well within the piIh;Gi, !, .
pies laid down by the Supreme Court IN l.s I,
| decision affirming the consututlohahN W
| the corporation tax law. .,.,,o bave
| their money invested in corporations '.hs .no
| are employing labor and deVelopihs at
| country are taxed l per centum on tnt nj a.
| earnings OF the corporations. Wn! 10 ~ ~
not as equitable and just to IMPOSE 4; a.
similar tax on individuals whose mone;i I'd
! invested in lines of business not oisa T., ~,
as corporations? Cnder Ine n, ie com
the stockholder in corporation 10 10 wbo
peled to pay a tax: the bonuholue', ,ho
| as rule takes little or no III IrHh honor,es
business, is not taxed III me OH on the
! n law tho bondhoider can pc tdAcu VII '
| same basis as the stockholder. os.;,.e. q
The levy of this tax is not eNcess,SS eNcessSC, 80 " 9.
man having an income of Sl0"W MouIu MA pn I
no tax ,t on the rst oSH V $50 asu Year @ and vet
| from the estimates made we ieeI aad,,c,. aST a
that the levying of this tax Mi NH PHI eS,al
revenue for the Governmeht ',,a, tax an sugar.
| that lost by the repeal of the tax OH HLn,,i
| The present corporation tax raises a"oU on
.20 O00 no and IL the special excise ,aN Iii ~,
J individuals raises s6o,c1Vp n'ore, ueaIth
only place direct , nu,asn sao 60 ~ OSe sn' as com
uarsS with 500 900 900 or $s0,OO0,VoO thst "
/ must raise TO support the soverhinnen,''cc c,reat
| the wealth OF the count1S of The gov
| ernment. il is not believed that lnr - tbis
| tion of this amount or taASS
source will be regarded ai as enIu,1d and general
| There has been universal ai'u Sor the
demand Coming from all parts OF ,gh tnS
! United States for free sugar, tnd' IL VIZ ey.
| cost of living may be reduced TO Wi sin brinr
tent The removal 9t ."s how v" humble no
mater hew poor. and the burden WI pe pe
| shifted TO those who are poss,SS can hear
| than comfortable fortunes asrions arH incon-
! the additional tax "''"o"'
venierce, ..J
J Hov Ineom. Tax Would &c Compu'e'
/ some of the special provisions OF 'ne
,,o,,,o tax ar excise bill provide that III
committing incomes expenses ac'uai'I W
curred IN carrying on business NOT '"-
c,ud,ns personal living or family cS-
nonses shall he deducted, as shaH IN
terest on Indebtedness. National s'l''
school and municipal taxes, not ineioui"s
| those assessed dSdihSN iSN''
shall he deducted from the prohts OF 'n-
comes Of the persons who actually pau
+bem Losses by fire. shipwreck, storrh'
etc not compensated by insurance ana
worthless debts are 10 be exempt.
The term business as employed III lhe
act is hold To embrace everything IN
! which person can he emp'oyed ana
IAN activities which occupy time, st'eh-
tion and labor of persons for livelihood
or profit The word person Is heio 10
include natural persons or individuals or
firms or copartnerships.
One provision Is drawn to eliminate
salaried men who contribute to the taNen
income Of firms or companies. Another
provision would direct all paymasters
and disbursing officers of the united
| states to deduct the tax from payments
to government employees.