1 minute read
us take care of your orders with our ttspeedy Servleett
Washington, Oct. 28.-Calling attention to the im. portance at this time of endeavors looking to a fairer ad. justment of the income tax rate on corporations, the National Lumber Manufacturers Association is distributing copies of a statement of facts in the situation and an explanatory letter prepared by Frank G. Wisner, Laurel, Mississippi, Chairman of its Advisory Tax Commit'tee. These documents are being sent to officers, directors and stockholders of corporations with a circular letter pointing out that,this is the opportune time for them to call this tax discrimination to the attention of their Congressional representatives.
I\4r. Wisner shows that many stockholders in moderate circumstances are compelled to pay a twelve per cent income tax on the profits of their corporations before receiving dividends, whereas the maximum normal income tax levied on individuals and partnerships does not exceed a maximum of five per cent. Mr. Wisner calls attention to the Federal Treasury surplus of $185,000,0@ existing at the end of the last fiscal year and $300,000,000 preliminary estimate for the current fiscal year. He points out that such surpluses, largely contributed to by the present in. equitable tax on corporation stockholders, are being applied, at a greater rate than contemplated or necessary, to the reduction of the national debt; a practice likely to lead to further agitation for debt cancellations by nations less rigorously forcing their nationals.
Rate Table Shows Discrepancy
lY.R.CHAIYIBERTIN& C().
WHOLESALE LI,NilBER FIR and REDWOOD
SOUTHERN CALIFORNIA SALES AGENTS FOR
IIIE TITTIJ RIYER REDIY()()D C().
cRANNElL, HUMBOLDT CO.
OPERATING STEAMERS:
W. R. Chamberlirq Jr.
OFTICES:
Hced Oficc
The progressive increase in corporation tax rates is tabulated and the marked discrimination in favor of individuals and partnerships, as compared with stockholders, since l9l7-excepting only the heavy tax period of 1918 to L92l -is given graphically, showing only a one and one-half per cent relief for corporations from the high thirteen and onehalf per cent rate of. 1926 as against a_ seven per cent decrease for the.other groups from ,their 1918 peak of only twelve per cent.
Since it is likely that Congress will consider income tax reduction at the regular session which opens in December and equally likely that those will be favored who make the greatest impression on their representatives in Congress, Mr. Wisner points out that it is in the interest of ofiicerp, directors and stockholders in corporations that they should at this time let their senators and representatives kno*' that they demand relief and that they should keep ,this matter before them until favorable legislation is obtained.
