The sun., 1916-08-17
CORPORATIONS HIT
BY REVENUE BILL
Measure Reported to Senate to
Be Bitterly Fought by
Republicans.
SIX DEMOCRATS OPPOSE
Debate on Measure to Raise
1905, 900, 1000 Expected to
Revive Tariff Issue.
SIX DEMOCRATS OPPOSE

Revive Tariff Issue.
wAsHiNGroN. Aug. 1s.-The revenue
bill as amended by the Senate Demo-
Gratis was reported favorably TO the
Senate to-day. II In estimated the bill
will raise $2O5. 900. 900. Tn Democratic
leaders hope to have the debate under
way within a day or two.
The discussion promises to furnish one
OF the most interesting incidents Of the
session. Tn Republicans have decided
to attack the bill. and in this way to
emphas. re the tariff Issue. Several Of
the Democratic Senators. including
Phelan OF California. who Is opposed to
the wine schedule: Underwood Of Ala.
bama, who looks with disfavor uron the
dye schedule n the proposed tarir
commission Norman of New York,
who criticises the increases in the income
tax Chamberlain Of Oregon. who is dis
satisfied with the tag on lumber and
Ashurst OF Arizona and Pi,tman OF
Nevada. who are against the copper tax,
$50 = sN'lTolfS VA ne jill.
ON OF the most Interesting features
added by the Senate Is tho new tax upon
corporations. This was devised when IL
oeoane apparent that the proposed tax
on munitions would hit cotton. Tt the
average Democratic Senator cotton il
sacre1. They insisted on reducing the
munitions tax by one-half and throwtns
an additional burden upon corporations
IN the great Northern States like New
York.
Provisions 81 New Sections. q
The section imposing a new tax on
corporations has these provisions:
Corporations. joint stock companie.
and associations shall pay 50 cents for
each one thousand dollars Of capi,al,
surplus and undivided profits. including
SUCH sums as may he invested in or
loaned upon stocks. bonds. mortgages,
real estate or other securities. The
amount OF such annual tax shall in all
cases be computed on a basis OF the
capital. surplus and undivided profits
for the preceding fiscal year.
Every corporation. joint stock COM
pany or association shall DO liable 10
this tax. provided that an exemption OF
$4,000 shall 10 allowed. and provided
further that corporations actually pay
ing the tax imposed by section II OF
title 3 ~ this act shall be entitled to
a credi, NJ agains, the tax imposed by
ms paragraph equal 60 the amount of
the tax 30 actually paid and provided
%iu'tii-s i,i"t the tax snail not he I'M
posed upon any corporations no, en-
gased In business or which had no ne, in
come. aS defined in title l OF this act,
during the preceding taxable year. or
which are exempt under the pro, isions
OF section II. title /. OF this act
Taxation Of "war Brid~s."
The Senate committee rcwro,e the
entire section OF the House bill limos
ing "A tax on the so-called war brides 4"
The senate bill provides that every
c11ofai!on manufacturing gunpowder
ana other explosives. CARTRIDGES, loaded
ara uH'olded. caps. or primers, project
les, shells. or torpedoes Of any kind, in
Guiding %shrapnel, or fuses or conp.ete
rounds OF ammunition. firearms OF any
Kind. and APPENDICES. electric motor
boats. submarine or submersible boats.
snail pay for each taxable year an ex-
else tax OF 10 per cent. upon It's entire
let profit actually received or accrued
from the sale or such articles within the
United S,ates.
The Senate bill also imposes a tax OF
. per cent. upon the ne. profits received
by u corporation from tho sale OF any
material entering into and used AS "A
component part In the manufacture Of
any az the articles enumerated as taxabl.
munitions.
The section imposing a tax upon
munitions and materials shall cease 20
he effective one year after the termina-
ton or the present European war.
Every corporation manufacturing or
selling any OF the articles mentioned
shall make n return TO the collector OF
internal revenue before March ! OF each
year. The Commissioner Of Internal
Revenue is authorized to make an in
vestigation IL he IL dissatisfied with the
returns 10 collectors. Failure 20 make
returns will be n misdemeanor subject
Ing the corporation 10 "A fine of SIC. OOO
and It's officers TO Imprisonment no. en-
ceeding one year. or both.
Many special Taxes.
Under he Hill as Il energies from the
Senate committed stock brokers will
have 10 pay "A special tax Of $40 a year.
~pawnbrokers $50, ship brokers 500, GUS
toms brokers slo, proprletors OF theatres.
museums and concert halls with a seat
ing capacity Of not more thar 2iO S25.
with "A seating capacity Of more thar $50
and less han 300 $50. will SEATING ca
pacity ~ 500 and less than 500 S1i. and
with a seating capacity Of more than 500
$l"" In towns and villages Of 5000 in
habitan,s or less the amount OF IN. tax
shall he one-half the above.
Proprietors Of c!rcuses are taxed 500
and proprietors or agents Of ali other
public exhibitions or shows for money
1910.
The House provision taxing having
alleys and billiard rooms s. for each
alley or table IN retained, and also the
House tobacco tax.
The Senate committee imposes a stamp
tax upon bonds. dehentures or cert,n-
Gates OF Indebtedness NJ the rate OF five
cents ~ each 500 Of face value or
fraction thereof, Also on zach original
issue OF certificates of sto X, five cents
on each 500 of face value or fraction
thereof tax ~ two cents Is provided on
each 500 OF face value on all sales or
agreements to sell or transfer shares or
certificates OF stock. \ further tax
is imposed OF one cent for each 500 in
value ON any sale or agreement to sell
producIa M mfrnHnnfsT m *.
change or hoard OF trade for future de-
livery.
Tax On Deeds and Transfers.
Every deed, Instruments or writing trans
|, ferring lands, tenemonts or other realty
In taxed so cents when the value of the
property exceeds $500. and for each ad-
). u. ull $500 or fraction thereof 80
cents.