Show Tax fax on British Cooperatives J Stirring Millions to ito Protest By By HERBERT MOORE 1 United Press Staff Correspondent LONDON June 27 27 Six Six and one- one half halt million members of the profit profit- sharing haring cooperative societies which transact 25 per cent of the re retail il business business business busi busi- ness in Britain are up in arms against the he national governments government's implied threat to make the societies subject to o income tax hitherto exempted The government has thrown a bone boneo to o the private traders by appointing a committee to investigate the question question ques- ques tion Ion and make recommendations But well veil informed observers are arc asking what will wm happen If the committee should hould decide that the coops should be taxed OPPOSED BY MAC l MACDONALD DONALD Many su suggest gest the possibility that the national government would break breakup up in the attempt to carr carry out such recommendations Prime Minister Ramsay MacDonald and two o ly other laborite members of the national cabnet cab cab- net met are known to be opposed to taxing taxing tax- tax ing ng the coops Most of the conservatives conserva conserva- tives Ives arc strongly in favor of it It is recalled that MacDonald durIng dur duro Ing lag the October general election campaign cam cam- aign told a n woman questioner In his ils Seaham division who asked i if the national government Intended to tax the he cooperative societies Not so 50 long as I am a member of the he national government It is understood that Viscount Snowden lord privy seal and J. J H. H Thomas dominions secretary hold the he same view Neville Chamberlain chancellor of the he exchequer however must find additional revenue as the sources of income tax continue to dry up Furher Further Further Fur- Fur ther her drastic economies economics arc are considered necessary and It may develop that tax the coop will furnish the most feasible way way out for him TREMENDOUS GROWTH I The cooperative societies have grown tremendously despite the economic eco ceo depression knocking hundreds i. i of private traders out of ot business I Their annual business exceeds 1725 In 1930 the societies had a anet anet anet net surplus of ot Members are entitled to a dividend of at one shilling in the pound sterling of every pound sterling approximately 5 at t par they buy during the year This Thi Is equivalent to 5 per cent It is ar argued that the exchequer would gain nearly a year yearby yearby yearby by making the coops pay income tax the same as private firms Representatives Representatives Rep Rep- of the societies however figure that it would not exceed 2 2 J if 11 an equitable rate were ap ap- ap plied At present the societies are arc liable to Income tax under schedules A and B B. B that is ownership and occupation of land and premises but arc exempt under schedules C and D which cover the tax on interest and profits Because Because Because Be Be- cause of this exemption their income tax payments in 1930 amounted to only Their fundamental argument Is the legal principle that a ora man cannot make profit out of himself They claim they are a number of ot private Individuals who have agreed to do their buying collectively and divide th surplus of at cash payments among themselves |