PALMER, ALASKA
Dorothy M. Bell, Editor
Published every week at Palmer, Alaska for the Matanuska Valley FarAers1 Cooperating
Association for'the purpose of giving news of the Associations 7ork, Problems and
Accomplishments, as well as news of general interest to the Valley.
SUBSCRIPTION PATE_$L.75 per year_10gf a copy_
WHO PflyS TAXES ?
Everybody pays taxes and everybody pays business taxes. Cooperatives pay taxes, 7e
all pay business taxes whether we own a business or not. Business first of all col
lects its'taxes from us, the paying customers. Then it nasses the money along to
Uncle Sam.
There'are'four kinds of business in the American system. They are: 1. The single
owner. 2. The partnership. 3. The Cooperative. 4. The general corporation.
All four kinds of business pay the sane real estate and personal property tares,
social security'taxes and other "operating” taxes. This tax mondy, along fcifch other
operating costs, comes out of the gross income.
The net income is the money that is left after operating costs and "operating" taxes
have been paid. That net income or "profit" is divided among the owners. It is sub
ject to income tax.
In three kinds of business, all profits beloftg to individuals. This is true of a
single owner, a partnership or a cooperative. That is Thy they are all taxed alike.
In the case of the fourth business—a general corporation organised for investor's
profit—the profits by law belong, not to individuals, but to the business itself.
The general corporation can, within legal limitations, do as it wi^ies with its pro
fits. That is the reason Thy its profits are subject to a corporation income tax.
This is a tax fbr the privilege of doing business as an investors' profit corporation.
It is good government and good business to tax such corporations according to their
ability to pay.
In the case of the'first three types of business, individuals pay a personal income
tax on all profits, beeaxse all the profits belong to them. Stockholders in a cor
onation organized for the investors’ profit also pay a personal income tax. They
pay oh just that part of the profits that are paid out to them as dividends on their
stock.
GROSS INC CMS
OPERATING COSTS
OPERATING TAXES
1 Social Secufity'
Pool Estato & Etc.
tnet operating ■
INC OKB
DUE OWNERS
DUE PATRONS
—_(nc refunds'
CONTROLLED by
ORGANIZATION Subj.
Gf-runrat.Ton Tni?r.imer
RECEIVED by
Owners & Patrons
El- - j-aet to -indivi—
dual income Tax.
SOLE OwXER
PARTNERSHIP
COOPERATIVE
CORPORATION
THESE THREE ARE TAXES EXACTLY ALIKE
From information out out by the "Farmers Union Grain Terminal Assoc iation'1
A cooperative ovmed by 100,000 farmer patrons.