Postwar Taxation and Economic Progress

By Harold M. Groves | Go to book overview

II. INTEGRATION OF FEDERAL CORPORATE AND PERSONAL TAXES

SURVEY OF OUR CORPORATE INCOME-TAX EXPERIENCE

THE first federal income tax, introduced in 1913, used the corporate income tax chiefly as a withholding levy. The rate of tax on corporate income was the same as the normal rate on personal income. Dividends were exempted from the normal personal tax. Thus double taxation was avoided. This policy was continued through the First World War, although both the normal personal and the corporate rates were raised to 12 per cent during this period. In the early twenties, the relationship between the two taxes was broken when the corporate rate was raised to 12½ per cent and later to still higher figures, while the normal personal tax was reduced to 8 per cent and subsequently to lower levels. In 1936, when dividends were made subject to the normal tax, the divorce between the two levies became complete. What had once been a withholding levy was thus converted into a full-fledged business tax. Both before and during the Second World War, the trend in federal taxation was to rely heavily on taxation of business as such.


"THEORETICAL" BASIS OF A BUSINESS TAX

The "theoretical" approach to business taxes is probably less important than an analysis of their incidence and effects. However, the effects of a tax depend considerably upon the reasonableness of its imposition. One of the main objectives of this study is to determine what constitutes a rational tax system and to what extent its attainment is practical. When this objective is contemplated it is apparent that the "theoretical" basis of business taxation is of no small importance.

-20-

Notes for this page

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this book

This book has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this book

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this page

Cited page

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited page

Bookmark this page
Postwar Taxation and Economic Progress
Table of contents

Table of contents

Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this book

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen
/ 434

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.