Tax-exempt Securities: A Study of Tax-exempt Securities in Their Relation to Investment and Public FinanceUniversity of Wisconsin--Madison, 1924 - 286 pages |
Common terms and phrases
actual advantage Am't amount annual average basis bill billions Bonds Selected capitalization cent cent bonds certificates Chapter City compared Continued corporations deductions effect entire equal excess exempt faculty Farm Loan Federal figures finance follows funds future give Government gross held higher included income classes income tax increase individuals inheritance taxes interest investment investor issues issues of tax-exempt Jekyl Island Joint Stock Land July June less Liberty Bonds Liberty Loan Loan bonds lower Market price Maturity means measure municipal bonds net income normal tax notes obligations outstanding percentage period persons present privilege profits progressive proposed question representative restricting result Returns saving Second selling Sept Stock Land Banks surtax TAX RETURNS tax-exempt bonds tax-exempt securities tax-free taxable taxation theory tion total income Treasury Unit whole yield
Popular passages
Page 48 - All such bonds and certificates shall be exempt, both as to principal and interest from all taxation now or hereafter imposed by the United States, any State, or any of the possessions of the United States, or by any local taxing authority...
Page 47 - Corporation shall be exempt, both as to principal and interest, from all taxation (except estate and inheritance taxes) now or hereafter imposed by the United States, by any Territory, dependency, or possession thereof, or by any State, county, municipality, or local taxing authority.
Page 134 - By far the most conspicuous evil of tax exemption is that it completely upsets the purpose of graduated taxes. In the first place, it enables those with property incomes to escape the burden of progressive rates, thereby causing the burden to be shifted to others less able to pay. Suppose, for example, that a married person without dependent children receives a yearly net income of $50,000 (after paying state taxes) from real estate valued at $1,000,000.
Page 35 - What included in gross income. Gross income includes in general compensation for personal and professional services, business income, profits from sales of and dealings in property, interest, rent, dividends, and gains, profits, and income derived from any source whatever, unless exempt from tax by law.
Page 135 - If he converted his real estate into 5 per cent federal farm loan bonds at par, his property and income taxes thereafter would be nothing, his net income would in no way be diminished, while the man who received the same income from personal services would continue to pay a tax of $11,030. The ability of the former would still be greater, but only the latter would be taxable.
Page 11 - If therefore we sum up the whole discussion, we see that while progressive taxation is to a certain extent defensible as an ideal, and as the expression of the theoretical demand for the shaping of taxes to the test of individual faculty, it is a matter of considerable difficulty to decide how far or in what manner the principle ought to be actually carried out in practice.
Page 47 - Are exempt, both as to principal and interest, from all taxation (except estate or inheritance taxes) now or hereafter imposed by the United States, any State, or any of the possessions...
Page 9 - But their argument proves too much. An uncertain rate, if it be in the general direction of justice, may nevertheless be preferable to a rate which, like that of proportion, may be more certain without being so equitable. Half a loaf is better than no bread. Stability is assuredly a good thing. But it is highly questionable whether a stability which is necessarily unjust is preferable to an instability that works in the general direction of what is recognized as justice.
Page 35 - ... (c) Net income, meaning gross income less statutory deductions. The statutory deductions are in general, though not exclusively, expenditures, other than capital expenditures, connected with the production of income.
Page 9 - It is possible, therefore, to draw only this very vague conclusion as to the general legitimacy of the principle of progressive taxation. The practical application of the principle depends on a series of important considerations. In the first place we are confronted by the question of incidence. If the theory of general diffusion of taxation be true, then it makes no difference whether we levy a proportional or progressive tax. For, since the tax would ultimately be shifted to the consumer, the taxpayer...