Wauwatosa news. [volume] (Wauwatosa, Wis.) 1900-1948, 1917-10-05
$2,7O0,0O0,0O0 Bill to Be Signed
by Wilson at Once.
NO ROLL CALL DEMANDED
La Toilette Casts the Only Dissenting
Vote Against Bill, but offered
No Objection to Its
Passage.

dissenting vote coming from Senator
La Toilette although the senator did
not seek roll call on the measure and
offered no objection TO its passage.
The bill will be in the hands of
President Wilson this afternoon 1t
was engrossed an hour after it had
passed the senate. At noon today it
will be signed by Speaker Clark and
Vice President Marshall. 1t becomes
law when approved by the president.
For a time it looked as though La
Toilette and others in the senate were
to make a special fight against the bill
and hold up action on it for several
days.
Simmons Explains.
Senator Simmons explained why the
conferees had reached agreement
through compromises and spoke in
justification of the newspaper and
magazines taxes, against which there
had been a protest He had inserted
in the record long letter from Post
master General Burleson defending the
taxes as carried in the BILL
Senator Simmons made the state
ment that recapitulatiOns of estimated
revenues to be derived from the bill
showed it would yield about $200,000,-
600 less than was originally estimated.
The losses would come from oyeresti-
nations of the yields from the income
and war profits taxes largely, but. he
asserted, the bill was the most equit-
able and evenly distributed burden
bearer that could be drawn. Senator
Smoot of Utah, Republican leader, de-
Tended the bill as fair and impartial
measure.
Fordney's Figures.
Representative Fordney of Michigan,
an expert on the tariff, explained by
figures how the bill would operate on
the three forms of business organiza-
ton, corporations, partnerships and in
dividuals.
In addition to showing how far into
incomes and profits the bill will reach,
Mr.. Fordney'S tables indicate that the
task of figuring corporation, partner
ship and individual taxes will be
gigantic one and that an enormous
amount of detail work will be exacted
from both the treasury officials and
the accountants of business houses.
Representative Fordney gave to each
of his three forms of business a cap
ital of 100000 and an income of $780,
00O In the partnership he allowed
.kt,n, H. ho
for Individual taxes as well as stand
ing the excess profits tax upon their
so per cent return on the 100000 cap
ital.
His table, which follows, shows the
total amount of income, corporation
and excess profit taxes that would
be paid (a) by corporation with a
capital of 100000 and a net income
of $4,000; (h) by a partnership of
three parties with capital of $780,
900 and a net income of $4,000; (c)
by an individual engaged in business
with 100000 capital and $4,000 of
net profits.
(A) Corporation with capital of $780,
600 and net income of $4,000. De
Quoting from net income per cent
of the capital, the maximum deduc-
ton. plus $1,000, total deduction of
$4,000 shows the taxable income to be
$4,000.
Tax on amount in excess of deduc-
ton and not over Is per cent of capt.
tai, $4,000 at 20 per cent-$6OO.
Tax on amount of profit in excess of
Is per cent of capital and not over
20 per cent, $1,000 at % per cent
1850.
Tax on amount in excess of 20 per
cent OF capital and not over % per
cent, $1,000 at 50 per cent-S1, $50.
FAX on amount in excess of % per
cent and not over 33 per cent of capt.
tai, $4,000 at As per cent-$3, 900.
Tax on amount in excess of SO per
cent of capital, $4,000 at 60 per cert
$4,000.
T0t1l excess profits taxes-S17, 400.
Nel income-$50, 1000.
Excess profits tax-S17,4 400.
Net subject to income tax, $50, 600
at per cent-$1,956.
Total tax-$19,356
Partnership Tax.
(B) A partnership of three parties
with capital of 100000 and net in.
come Of $4,000.
DedLcting from net income 8 per
cent of capital invested plus $4,000,
a total deduction of $4,000, shows the
taxable income to be $4,000.
Tax on amount of income in excess
of deduction and not over 10 per cent
of experimenting.
Tax on amount of income in excess
of 10 per cent but not over 20 per
cent of capital, $1,000 at % per cent
81 $50.
Tax on amount of income in excess
of 90 per cent but not over % per
cent of capital, $1,000 at % per cent