Norwich bulletin. [volume] (Norwich, Conn.) 1895-2011, 1921-01-28
SAYS THIS TAX WOULD
RAISE NEARTy NrTTLJ0N

The laying. of a state tax-of 2 per cent.
on the net incomes of businesses conduct
ed by individuals and partnerships. some
what similar to the present tax on cor
porations. IL proposed by Tax Commits
sioner William H. Blodgett in bill which
was introduced In the legislature Thurs
day.
This Is the first method laid before this
session by the tax commissioner for the
raising Of the additional revenue needed
to keep the state out Of debt and lis esti-
mated to add $4,000 to $1,000, 600 a
year to the states income. 1t would
mean an increase Of 81, SOC, 900 to $4,000
900 for the two years for: which the
budget Ii prepared.
The new tax Is proposed on the tory
that 1t is unfair to tax corporations per
cent. on their net incomes and exempt
individuals or partnerships which often
do business of considerably greater vol
ume than many corporations.
The bill provides that every individual
or partnership engaged in 20 mercantile
business or manufacturing shall pay an
nually tax Of excise, with respect to
carrying on or doing business, equivalent
to per cent. Of the entire net income,
over and above 81 900 received. by such
| individual or partnership from business
come year; provided, however that in no
case shall the tax be less than FIVE dol
lars"
The term mercantile business is de-
| fined to mean the buying of personal
property, tangible or intangible, and sell
! ing the same for profit or gain, and MAIN
| tanning regular place of business and
| acting as agent and buying and selling
| such property on commission or other.
wise for profit or gain" The term man.
ufacturing" as used in the bill Is defined
to mean making articles into suitable
! forms for use or repairing personal prop
| erty other than wearing. ap7sSal. fol
=! profit or gain"
In cases where the entire ,FxSnAu,s Of
4 taxpayer is not carried on 4. Fsonnecti
| cut, the tax imposed would be. .6mputet
tupon a proportion of~tlIe net income, Il
be determined in accordance with tn,
following rule: That portion Of rae en',r,
net income would be construed " hiv,
been earned in this state as the &ytal as
sets Of the taxpayers bears to the tota
assets So employed II such business ey
eryWhere. Assets would include real es
tate and personal property. including in
tansibles acquired in the conduct Of tn
business after the passage Of the act
Returns Of net incomes OF bushes
carried on by estates or trusts would b,
made by the fiiuciar;es
House Chairman Jacob D. Walter o
the committee on finance offered a bill II
! the house Of representatives providing 70
tax of one cent on for each 10 cents o
portion thereof CHARGED as admission +
any. place OF amusement. including admis
sion by season ticket or subscription.
This tax would be in addition to tn
present federal war tax" on amuse
ments. Exemptions allowed would cove
only military and naval men and officer
in uniform and legitimate employees o
theatres. The bin provides a tax Of no
more than 80 cents on tickets sold ava
from the box Office; q 10 per cent tax o.
boz holders taxes admissions to roo
gardens. caharets and refreshment place
at the rate of ga per cent. on each =
cents of the price. It provides an ad1.
tionaf tax Of Is per cent on receipt
against proprietors neglecting to file re
turn lists to the tax commissioner on tim
and provides a S per cent penalty 70
neglect to pay taxes when due. The bf1
was referred to the committee on fnancs