The fiscal problem in Missouri

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Multivolume work

Identifikator:: 1887156356

Document type:: Multivolume work

Author:: Schmoller, Gustav von http://d-nb.info/gnd/118609378

Title:: Grundriß der allgemeinen Volkswirtschaftslehre

Place of publication:: Berlin [u.a.]

Publisher:: Duncker & Humblot

Year of publication:: 1900-

Collection:: Economics Books

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Volume

Identifikator:: 1887256288

URN:: urn:nbn:de:zbw-retromon-242253

Document type:: Volume

Author:: Schmoller, Gustav von http://d-nb.info/gnd/118609378

Title:: Verkehr, Handel und Geldwesen. Wert und Preis. Kapital und Arbeit. Einkommen. Krisen, Klassenkämpfe, Handelspolitik. Historische Gesamtentwickelung

Volume count:: 2.1904

Place of publication:: Berlin [u.a.]

Publisher:: Duncker & Humblot

Year of publication:: 1904

Scope:: X, 719 S.

Digitisation:: 2022

Collection:: Economics Books

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Chapter

Document type:: Multivolume work

Structure type:: Chapter

Title:: Viertes Buch. Die Entwickelung des volkswirtschaftlichen lebens im ganzen

Collection:: Economics Books

296 THE FISCAL PROBLEM IN MISSOURI State banks pay a corporation franchise tax and are sub- ject to the income tax in addition to the general property taxes on real estate and bank stock. The general property tax on bank stock is assessed to the shareholder, but in practice the tax is paid by the bank, and for all practical purposes the distinction between the shareholder and the bank need not be considered in analyzing the burden of bank taxation. Since banks chartered by the state are subject to two taxes that the national banks are not required to pay, it follows that they are in an unfavorable competitive posi- tion. In other words, their tax burden at the present time is excessive as compared with national banks. The difference in the total taxes that are assessed against national banks and state banks may be illustrated by assum- ing the case of a banking institution with a combined capital and surplus of $1 million, deposits of $10 million, loans and investments of $10.6 million, and a bank building the true value and book value of which is $400,000. The last two items are assets, and the first two comprise liabilities in the bank statement. In practice there are other asset and lia- bility items, such as reserves and contingency accounts. The items stated, however, are sufficient for the purpose of illustration. If itbeassumed further that the bank buildingand shares are taxed at a rate equivalent to $1.50 per $100 of true or book value and that the net income of the bank is $100,000, or 10% of the combined capital and surplus, the general property tax on the bank will then amount to $6,000, and the property tax on the shares will amount to $9,000, on the basis of 100%, assessment of the capital and surplus less the value of the real estate. If the bank is a national bank, no other taxes are assessed, and the total state and local taxes paid amount to $15,000. On the other hand, if the bank is a state bank, it is assessed $1,000 for the income tax, in addition to the property taxes. Also, as a state bank it has to pay a corporation franchise tax of $500, on the basis of the assumed bank statement. An unusual provision in the franchise tax statute provides that for the purpose of this tax bank deposits shall be regarded as left for safe-keeping. In other words, $10 million would not

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