Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-09-08
Profit and Loss Income y.
Tax Figures Desired
nv HARDEN COLFAX

Uneasiness may have marked recep-
ton by some business men OF news that
the Senate Monday will be asked to
consider a resolution calling for infor-
nation regarding certain details oil
Federal income tax returns, but the
fact is that while tax publicity usually
is resisted in specific cases the rev.
enue act itself provides that commit
tees OF Congress shall have access to
such information.
1t is for the purpose of assisting
debate on the pending tariff bill that
Senator Simmons, the veteran ranking
Democratic member of the finance COM
mittee, has proposed resolution to di-
rect the finance committee to ask the
Treasury for profit and loss items OF
taxpayers, to be named either by the
majority or the minority of the COM
mittee, as filed with the Internal
Revenue Bureau during the life Of the
Fordney McCumber tariff act. A more
broad resolution, proposed by Senator
Blaine of Wisconsin, would require joint
action by the two houses of Congress
and probably will give way temporarily
to the Simmons resolution, which would
necessitate action by the Senate alone
What the Democratic members expect
to develop by the information they want
to secure from tax returns Is that some
taxpayers who have sought increases
In tariff protection or would benefit by
increases carried in the pending bill
have made comfortable net incomes
since the 1922 act was passed.
Opposition may be expected to wide
spread publicity as to the financial
statements of corporations or individuals
and there probably will be opposition to
the proposal on other grounds.
4 u y +
No one Is in a better position than
the astute Senator Simmons to realize
that income tax statistics are as full
OF pitfalls as recently shelled battle
field. The published records establish
the fact that business and industry
have been more prosperous since 1922
than In the few years Immediately pre-
ceding enactment Of the present tariff
law But the Democrats are not likely
to admit that this happy condition is
due to the tariff. All recall that 1920
and 1921 were years Of depression due
to postwar def1ation.
Assuming that the information on
profits and losses as disclosed by in
come tax returns will be given Senators
Tor the tariff debate, a fine argument
may be started over such weighty Sub
jects as the marginal" lines of COM
merce and industry, for a hundred cor
porations may make a small profit
where one in exactly the same line OF
business enjoys large returns.
Indeed, that is exactly what the
analysis of income tax returns shows
from year to year. Less than so per
cent Of the corporations which filed
Federal income tax returns enjoy any
net income. In the preliminary state
n1ent Of returns filed last year for 1927
business operations, 249, SAT corporations
reported net incomes aggregating
$s.06s, 200 900. while o3,006 corpora
lions reported no net income, but def
cts aggregating $2,3l1, $4,000. For
1921 operations, the last dull year be-
fore enactment of the present tariff,
l7l,239 corporations reported net in
comes aggregating $4,336, 047, 600, and
1888 reported no net incomes and
deficits which totaled $2,029, $4,000,
\
The last taxable year for which o
complete analysis of the income tax
statistics il available was 1926, returns
for which were filed In 1927. Compar-
ing these figures with those for the
taxable year 1921, the same general
story as to corporations is disclosed. In
1921 Of corporations which had net In
comes 44.06 per cent had net incomes
Of less than $4,000, while only 3.l1 per
cent had net incomes in excess OF
100000. In 1925, 45.75 per cent Of
the corporations with net incomes en-
joyed such incomes only to the extent
Of less than $4,000, while 3.98 per cent
had net incomes of more than 500. 900
each. Less than 10000 corporations IN
the United States. enjoy net incomes OF
100000 or more in any year. the rec
ords show. and less than 1000 are IN
the million-dollar or more net income
class. $50 sa 80
Contrasting 1925 returns with those