Proceedings of the National Industrial Tax Conference Volume 1
This historic book may have numerous typos and missing text. Purchasers can usually download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1920 edition. Excerpt: ...is next to impossible to obtain. Now, then, the critical period in the affairs of American business will come when prices have reached their maximum and are unable to advance further, and at that critical period, as I said before, the business of the country will not be able to bear up under the present excess profits tax and continue to do business on a declining market. Let us take some specific case and examine it. Let us suppose a corporation in Sioux Falls by the name of the Sioux Falls Wholesale Company in the year 1920 has shown an earning on which under the present law they would be taxed $40,000. In the first place let us consider how their net gain for the year is computed and where the money is. They have taken their profit and loss accounts and combined them with an increase or decrease of their inventory account and decided that they have made a certain amount of money. When their inventory was priced, it was priced either on a basis of the market or at cost. You will see that the figures represented by this inventory are part of the figures used in computing the earnings for the year. Let us keep that in mind for a few moments and take up the matter of where this money is, which has been made during the year. A great deal of it is invested in the stock of merchandise, which has cost more than any previous inventory the firm has ever made. Part of the money that they have made may be in the bank but let us presume that this institution, like most institutions of the sort, is a heavy borrower and its limit has been set at $75,000. This credit has been used to its fullest extent right along on account of the high prices prevailing and on account of the immense expense accounts required to conduct the business. The proprietor of...
- 189 x 246 x 3mm | 100g
- 13 Sep 2013
- United States
- black & white illustrations