Show washington snapshots A stiff fight of nearly knock dewri and drag out ferocity is going on behind bellin ct closed washington doors it may never come fully into the open but a lot of hard feelings are being created it centers around one of the greatest tax experiments of recent years the so called 1 corporation surplus tax the publicly stated purpose of that tax was to force distribution of income in t the he form of dividends to shareholders share holders by levying a penalty upon income that was not distributed but the same law also included provisions questioned by many one yas so phrased that it levied the penalty tax upon income used to enlarge and improve a plant these days with everybody trying to create new jobs the penally levy on extensions and improvements improve improvements prove ments has run counter to the general philosophy for it has kept employers from expanding their businesses so they could hire more people for the more they spent on expansion the more they were taxed small concerns seeking to grow were particularly endangered dang ered that is what the fighting is about A lot of federal tax experts want to change the corporation surplus levies but word has been passed along to capitol hin hill 1 to this effect we realize the corporation po ration surplus tax is inequitable but weve got to do what we can to achieve a balanced budget so we cant amend the tax this session |