Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1926-02-11
Fourth of Income
Paid in Taxes
INCORPORATED Co.'s

New York, Feb. 10-Incorporated
business enterprises in the United
States, which in 1928 reported an ag-
gregate net income of $9,269. 900, 900,
paid out of this amount $2,572. 000, 900
or more than a fourth (27.7%) In
taxes to federal, state and local
governments, exclusive OF special
assessments or betterment levies,
according to a study Of relative tax
burdens contained In a report on
Cost of Government in the United
States" by the National Industrial
Conference Board, Eat Park Ave-,
New York.
Their total tax bills, the Con-
ference Boards analysis points
out, represented a sum equal to 2.2
percent OF their gross receipts. 3h
per cent of their net assets. and 61.7
percent, or nearly two-thirds OF the
amount paid to their stockholders
in cash dividends, which was $4,l69,
900, 900 in that year.
OF the total of $2,572, 100000 in
federal, state and local taxes paid
by incorporated business organiZa-
lions in 1923, 1886, 100000, or 1874
per cent, came from manufacturing
companies 1925, 100000 or 24.3 per
cent from transportation and public
utility companies; SALT 000,000,or 16.2
percent from banking, insurance and
financial corporations; 1881 100000.
or 1913 per cent, from companies en-
gagged in trade; $130,000.000, or 81
percent, from mining and quarrying
companies; $65,O00,000, or 2A per
cent from public service (hotels,
theatres, etc. $29,000,000 or Ill
percent from agricultural and similar
corporations, and 22,000,000, or 0.9
per cent, from construction COM
panies.
Mining and quarrying corporations
paid in federal, state ard local taxes
combined a sum equivalent to 1913
per cent of their net income, in 1928;
the total tax burden upon agricul-
tural corporations amounted TO Az
per cent of total net income, manu-
featuring companies, PA per cent,
construction enterprises 25.2 per cent,
transportation companies and public
utilities SO per cent, trade corpora
tions, 24.7 per cent, public service
(hotels, amusement enterprises etc.,,
35.2 per cent, and financial organiZa-
tions paid taxes equivalent to SZ.2
per cent of their net income.
All corporations, taking the fair
value Of their net assets as reported
for capital stock tax purposes as the
approximate net investment of stock
holders, earned in 1923. 81 per cent
on their investment after deducting
all taxes, while cash dividends dis
tributed to stockholders constituted
5. 6S per cent upon their investment,
according to the Boards analysis.
Forty Per Cent. Show Deficit
Out of the total of 39s,933 corpora
lions in the United States in 1928,
1854 or about 40 per cent failed
to make a profit and showed deficits
as result of the years operations,
aggregating s2,O14, 100000. The pro-
portion of those whose accounts for
the year were sin the red" was high
est in the mining and quarrying
group, amounting to ~ per cent; in
agriculture and related industries, So
per cent showed a deficit: in manu-
featuring as a whole, nearly 81 per
cent ran behind; in construction, 35
per cent: among. transportation and
public utility companies, 32.4 per
cent; in trade, 80 per cent; among
amusement, hotels and similar es-
Establishments, 1874 per cent, and in
the banking, finance and insurance
field 35.3 per cent showed deficits
for the wear