The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1913-02-07
Corporation Franchise Tax As
sured in Kansas.
Revenue of $35O,OOO Annually
to the State.
USED IN 80 OTHER STATES
Has Been a Success, the Big
Firms Admit.
Complete Table of Values,
Rates and Revenues.

The administration forces working I'D
statistics on the result of the proposed
corporation license tax in Kansas have
discovered thai this tax will bring an
nually nearly $3.50, 900 into the state
treasury. More than $500 corporations
both domestic and foreign would come
under the occupation license as out
lined in the bill introduced a few DAYS
ago by Senator Howe. of Dickinson
county.
1t has been found also that more
than thirty states in the Union have
provided for an annual franchise tax
on private corporations. In the secre-
tary of states office is found the fig
ures on the corporation wealth in the
state. The domestic corporations in
the state have an authorized capital of
s17S, 1854, ,734 with an issued capital of
s142, ,173 o6O. The foreign corporations
have an authorized capital of $3.50. .461.-
460 with n Kansas capital of S81 1856, ,0SS.
Based on the Oklahoma rate OF a fec
of fifty cents per thousand on author
lied capital Kansas would derive an
nually from domestic corporations $s9,-
435. and from foreign corporations $40.-
67S Total $130,11O. Based on the Call
fornia rate Kansas would receive $62,-
2o5 from the domestic firms and $2S,-
225 from the foreign corporations or a
total of $50 430. Under the Ohio sched-
ule or the Howe bill offered in the SEN
ate the state will derive revenue of
s341 ,490 annually.
Objections From Corporations.
In other states 1t has been found,
according to reports. that the corpor-
ations favored the franchise tax AT
first a howl was raised but later the
officers assured the state that 1t was
to their advantage-and they recon-
mended it to other state legislatures.
The objections raised:
First-The corporations now pay
more than their just proportion OF
taxes.
Second-That many poor men have
stock in corporations and that this is
a blow at the poor man.
Third-That it will tend to drive COR
porations out of the state and will dis
courage others from coming in.
Senator Howe answers these obJec-
tions:
"As to the first proposition, If local
assessors are assessing corporation
property higher than they are other
property, that is not the fault of the
state.
"As to the second proposition. 1 de-
sire to say that ii is not the poor
man with a share or two of stock who
is protesting against this law, but the
manager of the corporation or its rich
And to the third objection. the his
tory of other states refutes this charge
If such a law would drive corpora
tions out of the state, why is IT that
all of the corporations of New York,
Ohio, Massachusetts, New Jersey, Vir-
ginia, Georgia, Texas and Oklahoma
have not been driven out Of those
states into Kansas before this time?
I have witnessed no such exodus into
Kansas The fact is that the law will
not drive corporations out of this
state. 1t has not driven them out o.
other states. On the other hand, as
shown by statistics, Ohio has more
corporations today than it ever had
and they are all willingly complying to
that law. The United States census
reports show that the states that have
this law have grown fully as much
in corporation wealth in the last ten
years as has Kansas or the states
which have not had the law"
Figures on Kansas Corporations.
DOMESTIC CORPORATIONS.
No Rate Revenue