The Bridgeport evening farmer., 1917-01-27
DEMOCRATIC CAUCUS, AFTER
 SHARP DEBATE, AGREES TO
 TAX PROFITS, ISSUE BONDS

] under then existing laws: Provided
 that the Secretary of the Treasury
 may use such fund for other purposes,
 but such fund shall be reimbursed for any portion thereof so used. Title II.-Excess Profits Tax Section 2OO-That when used in this title:
 The term "Corporation" includes
 joint-stock companies or associations, and insurance companies;
 The term United States means
 only the States, the Territories of Alaska and Hawaii, and the District of Columbia; and,
 The term Taxable Year" means the twelve months ended Dec. 31, except in the case of corporation or part
 nership allowed to fix it's own fiscal year. The first taxable year shall be the year ending Dec. 31, 1917. Section POI. That, in addition to the taxes under existing laws, there shall be levied, assessed, collected, and paid for each taxable year upon the net income of every corporation and partnership organized, authorized, or existing under the laws of the United States or any State, Territory, or dis ltrict thereof, no matter how created or organized, excepting income deriv- ed from the business of life, health, and accident insurance, combined Tn
 one policy, issued on the weekly pre-
 mium payment plan, a tax of eight
 per centum of the amount by which such net income exceeds the sum of (A) $5,000 and (B) eight per centum of fbe aof11ai canifa1 invested Every foreign corporation and part lnership, including corporations and partnerships of the Philippine Island and Porto Rico, shall pay for each taxable year a like tax upon the amount by which its net income re- ceived from all sources within the United States exceeds the sum of (A) eight per centum of the actual capital invested and used or employed in the business in the United States, and (B) that proportion of 5000 which the en- tire capital invested and used or em- ployed in the business in the United States bears to the entire actual cap- |ital invested; and in case no such capital is used or employed in the business in the United States the tax shall be imposed upon that portion of such net income which is in excess of the, sum of (A) eight per centum of that proportion of the entire actual capital invested and used or employed in the business which the net income from sources within the United States
 bears to the entire net income and
 B) that proportion of 5000 which the, net income from sources within the United States bears to the entire net income.
 Section POP. That for the purpose of this title, actual capital inveSted means CD actual cash paid in, @ the actual cash value at the time of pay ment of assets other than cash paid in, and (3) pair in or earned surplus and undivided profits, but does not in- clude money or other property bor- rowed by the corporation or. partner ship.
 Section 2O3 That the tax herein imposed upon corporations and part nerships shall be computed upon the basis of the net income shown by their income tax returns under Title I, of the act entitled ''An act to increase the revenue for other purposes" ap- proved Sept. 8, 1916, or under this title, and shall be assessed and collected at the same time and in the same man. ner as the income tax due under Title A' VI oNSA dSI VI OOPt. 1SlO.
 Provided, That for the purpose of this title a partnership shall have the same privilege with reference to fix ing it's fiscal year as is accorded cor poratioDs under Section 13 (A) of Title I. of such act of septfs, 1916.
 And provided, further, That where corporation or partnership makes re- turn prior to March 1,1918, covering it's own fiscal year, and includes therein any income received during the calen- dar year ending Dec. 31, 1916, the tax herein imposed shall be that propor- ton of the tax based upon such full nscal years which the time from Jan. l, 1917, to the end of such fiscal year bears to the full fiscal year.
 Section 204. That corporations ex- empt from tax under the provisions of Section II of Title l. of the act, ap- proved Sept. 8, 1916 and partnerships carving on or doing the same business shall be exempt from the provisions of this title and the tax imposed by this title shall not attach tp incomes of partnerships derived from agriculture or from personal services.
 Section 2O5. That every corporation having net income of $5,O00 or more for the taxable year making a return
 AA~AO l. OA SuC1 dCL OI sept. s. 1916, shall, for the purposes of this tltie, include in such return a detailed statement of the actual capital in- vested |
 Every partnership having a net in come of $5.000 or more for the taxa ble year shall render "a correct return or the income of the partnership for the taxable year, setting forth specific ally the actual capital invested and the gross income for such year and
 the deductions hereinafter allowed. Such returns shall be rendered at the same time and in the same manner and forms as is prescribed for income tax returns under Title l. of such act of Sept. 8, 1916. In computing net income of a partnership for the purposes of this title there shall be allowed like deductions as are allow ed to individuals in Sections 5 (A) and (A) of such act of Sept 8, 1916.
 Section 206. That all adnlinistra- tive special and general provisions of law, including the laws in relation to the assessment, remission, collection, and refund of internal revenue taxes not heretofore specifically repealed and not inconsistent with the pro- visions of this title, are hereby ex-