Show I I- I t. t I f I T xing l By Ira C. C x Tichenor r companies which have disbursed stock dividends since the they MANY MANX y L decision of the United States supreme court that stock divi- divi den s. s ar are p principal and rind hc hence cc cannot annot be he b taxed as income doubtless exercised over the action of the house ways and are very much uch means ns com t a t to tax the tho privilege o of Issuing such dividends 1 which now now calls alls for a a special excise tax committee j 1 The action of the stock dividends already have been would operate as a penalty in cases caes where dec declared r d. d a and d legal authorities express the belief belef that there is no queston question 7 y I II of or its constitutionality I ed Plan plan provides where a has a a apar par par value a a tax of of 10 I T The e prop proposed I fraction thereof In mother other other words Studebaker which I II ev tor or for every par tracton h has s fidi paid iy a 00 stock dividend d of 33 1 Pf per cent rc nt or lt pay pay I Bhare on th J to V tax ta or a su sum equal x I v r tA s r r- r Jon inow i j now now outstanding effect of the of the te example Astock A stock dividend of per cent offers a an been bee less than par The stock i is is 10 par and there has tax x on stock of ot would I The tax paid id a dividend d of shares or par par value J therefore be tax tax taz will be 10 Pg pt unless share ar unless unless' the theL luthe the I On n market stocks stock value of no par no-par is par in v value excess of hi per share in which case the tax j. j L actual be computed at the the rate rate of 10 1 on each of the actual value or shall be will hard hit that the measure wi realize It is not difficult to thereof traction fraction tracton I have have to pay pay a tax for example which would woul a for Oil lai like s Sinclair n companies market markett companes dividend although the Jf f 10 a share share on stock paid pad paid out out a as s a stock t price re e is IB only 32 apparently value valtIe stoc stock sells above as in some ca cases s va e sels Where no par selling value r aggregate i cent on the the tie tax ta be equal to 10 per te announced that that decision was as court I It was declared when the supreme cour condition of ot unhealthy Y of the sign an was dividends k sig the declaration of sto stock wa a time when ev even n t te and that sooner Moner o or ol later there would come yome ome a business afara affairs ad would have cause to regret it It those who received such dividends w would ld stock tock dividends tose excise tax on n a special tx 4 P Possibly even better beter than the declaration of of such uch a dividend be the passage of a a la law w preventing |