New Mexico state record. (Santa Fe, N.M.) 1914-19??, 1917-03-16
new MEXICANS
ARE TAXABLE UNDER
new Federal Law

VcU ICUcnHL Law
SOME INGENIOUS WAYS OF
GETTING MORE MONEY
WERE DEVISED BY THE
LAST CONGRESS AND THE
FOLLOWING Is ONE
The bill to provide increased
revenue, which was passed just at
the close of the last session Of con-
gress, after strenuous opposition
from many Republicans who object
ed to the ways in which the new law
seeks to raise revenue and because
old bond laws, instead of providing
new one, reached us this week.
The secretary of the treasury is
authorized to borrow three hundred
million dollars on certificates of in
debtedness
He is authorized to borrow one
hundred million dollars by Il new
provision of this new law.
/ He is authorized to issue all the
bonds permitted by an act passed
in August 1909 known rs the act
"to encourage industries" which is
reviewed.
He is authorized to issue all the
bonds provided for by the Panama
Canal bill. years ago, which canal
was paid for in cash, and the bonds
never sold, which bond issuing au-
thority is reviewed.
| The increase of the levy against
estates of deceased persons is large
and increases with the value of the
estate until it reaches fifteen per
cent.
The provision which will affect
many New Mexico companies and
partnerships we reprint in full =
little lI.-Excess Profits Tax"
Sec. 200. That when used in this
title"
"Thc term corporation" includes
joint-stock companies or associa
tions, 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 ending December
thirty first, except in the case of
corporation of partnership allowed
to fix its own fiscal year, in which
case it means such fiscal year. The
first taxable year shall be the year
ending December thirty-frst, nine
teen hundred and seventeen.
"Sec 2Ol. 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, authoriz-
ed, or existing under the laws of the
United States, Or of any State, Ter
ritory, or District thereof no mat
ter how created or organized, except
ing income derived from the busi-
ness of life, health, and accident in
surance combined in one policy is
sued on the weekly premium pay
ment plan, tax of eight per CEN
tum of the amount by which such
net income exceeds the sum of (a)
$1,000 and (b) eight per centum of
the actual capital invested
Every foreign corporation and
partnership, including corporations
and partnerships of the Philippine
Islands and Porto Rico shall pay
for each taxable year like tax
upon the amount by which its net
income received from all sources
within the United States exceeds the
sum of (a) eight per centum of the |
actual capital invested and used or
emp owed in the business in the Unit !
ed States, and CD that proportion I
of 5000 which the entire actual |
capital invested and used or employ /.
ed in the business in the United
States bears to the entire actual
capital 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 por-
ton 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 tb) that
of $1,000 which the net
income from sources within the Unit
ed States bears to the entire net
income.
"Sec. 202. That for the purpose
IF this title, actual capital invested
means CD actual cash paid in. ~
he actual cash value. at the time
Of payment of assets other than
ash paid in, and (3) paid in or
earned surplus and undivided profits
1sed or employed in the business;
out does not include money or
other property borrowed by the cor
,oration or partnership.
"Sec. 203. That the tax herein
upon corporations and
shall be computed upon
he basis of the net income shown
W their income tax returns under
Title | of the Act entitled "An Act
o Increase the revenue, and for other
PURPOSES" approved September
.ighth. nineteen hundred and sixteen, ,
,r under this title. and shall be as
essed and collected at the' same
ime and in the same manner as
he income tax due under Title I Of
uch Act of September eighth, nine
cen hundred and sixteen: Provided,
That for the purpose of this title I
partnership shall have the same
privilege with reference TO fixing its ;
iscal year as is accorded corpora
ons under section thirteen (a) of
title l of such Act of September
.iphth. nineteen hundred and six.