President Roosevelt's plan for the taxation of the surplus profits of cor~ parations, modified to some extent, Will form the basis of the scheme Which the financial experts of the United States' House of Representa~ tives are framing in order to balance the federal budget, The proposed surplus tax will range from 15 per cent.
the first eight per cent, of undis~ tributed Income to 65 per cent. on over 22 per cent. of undistributed The endeavours of income {tnx payers in all countries to avoid paying more than they possibly can Fave always given the authorities jerable difeulty, and though Pr dent Roosevelt's scheme seems esigmed to secure the fullest possible payment on a company's profits, when ther distributed er not, it is doubtful whether he or anyone else can devise a scheme whereby the government should obtain all {0 which it is properly entitled. It is not a very dificult matter for any company to show redueed profits, merely by the fetid tious Increase of various outgoings, and. to maintain a complete check over these would require a system of Investigation which would prove not only clumsy but expensive. At the some time if these new suggestions tean be effectively put into fore there every prospect that much money 'Will reach stockholders' hands. which {at present denied them, and that not always for good reason. That corporations should be permitted to ectimulate reasonable reserves is Undenlable, and the proposed scheme admits the principle, but if it works fg it Is hoped not only the government, but the investor should benefit,
Text read from the printed page and cleaned; old type leaves the occasional error.