Financial allowance

“ Your allowance is based on the principle of a reasonable amount for each thing you need. If you pay too much for one thing you must cut off somewhere else and that is not satisfactory. But if you think you did right, Rilla, I have no more to say. ”

“ That in computing the net income of a corporation subject to the tax imposed by section 230 there shall be allowed as deductions:
' (1) All the ordinary and necessary expenses paid or incurred during the taxable year in carrying on any trade or business, including a reasonable allowance for salaries or other compensation for personal services actually rendered. * * *'
The payments in the present instance were actually made in the year 1920. ”

“ But if extraordinary expenses should exhaust it, we can obtain a limited advance on the next year's credit, though this practice is not encouraged, and a heavy discount is charged to check it. Of course if a man showed himself a reckless spendthrift he would receive his allowance monthly or weekly instead of yearly, or if necessary not be permitted to handle it all. ”

“ Such allowance shall not exceed 50 per centum of the net income of the taxpayer (computed without allowance for depletion) from the property, except that in no case shall the depletion allowance under section 23 (m) be less than it would be if computed without reference to this paragraph.' 53 Stat. ”

“ On the contrary, he appreciates their services so highly that it is his wish to make the allowance permanent, by granting them a capital sum sufficient to represent at eight per cent their emolument from the property. ”

“ Admitting, for the present at least, the reasonableness of the proposed allowance for the expenses of the banking and insurance departments of the business, we have before us the problem how to equitably adjust the burden among the great variety of policies. ”

“ The compensation which the Constitution guarantees an opportunity to earn is the reasonable cost of conducting the business. Cost includes not only operating expenses, but also capital charges. Capital charges cover the allowance, by way of interest, for the use of the capital, * * * ”

“ It must be considered that any uncommon expense, as the loss of a horse or the like, may occasion an extra draft over and above the allowance. I like very much your methodical arrangement as to expenses; it is rather a tiresome thing at first to keep an accompt of pounds, shillings, and pence, but it is highly necessary, and enables one to see how the money actually goes. ”

“ Where at the end of the basis period for any year of assessment a person has in use machinery or plant for the purpose of his trade, profession or business there shall be made to him in respect of that year of assessment an allowance to be known as an “annual allowance” for depreciation by wear and tear of those assets. ”

“ It would present too great a temptation to parties to intermeddle in the management of valuable property or funds in which they have only the interest of creditors, and that perhaps only to a small amount, if they could calculate upon the allowance of a salary for their time and of having all their private expenses paid. ”

“ The analysis took the form of a comparison of the death-rate in those families as related to the number of children in each, the household allowance of each, and the amount paid in rent by each. Household allowance was chosen rather than wage, as being necessarily in closer touch with household expenditure than is the actual wage, from which a varying amount of pocket-money for the man is generally taken. ”

“ Yet there are other cases of loss, from various causes, which may be very uncertain in amount, for which no fixed and inflexible rate of allowance can be prescribed, and which must, therefore, in each instance, be left to be regulated by the general provisions for assessing duties, and the general principles applicable to them, as before explained. ”

“ and after conferences, by his instruction, with the Secretary of the Treasury, I am authorized to assure you, that the government of the United States have no idea of paying their debt in a depreciated medium, and that in the final liquidation of the payments which shall have bean made, due regard will be had to an equitable allowance for the circumstance of depreciation. ”

“ Although no deduction for depreciation is permitted to be made by the person himself who sends in his return as to profits, he may, in such return, make a claim for an allowance in respect to wear and tear of plant [18] or machinery, which will be subject to settlement by the revenue authorities. ”

“ Where there are no sale, insurance, salvage or compensation moneys or where the amount of the capital expenditure of the person in question on the provision of the plant or machinery still unallowed as at the time of the event exceeds those moneys, a balancing allowance shall be made, and the amount thereof shall be the amount of the expenditure still unallowed as aforesaid or, as the case may be, the excess thereof over the said moneys. ”

“ Allowance of Salaries.—The allowance of salaries to partners is not so much for the purpose of measuring the excess of the profits of the partnership over what the individual owners might have earned by working for others, as it is for the purpose of equalizing or adjusting their interests on an equitable basis. When, on the one hand, men invest their abilities and services in addition to their capitals, and on the other hand, the profit and loss-sharing ratio is determined on the basis of capitals invested, the greater ability of a given partner may be recognized and compensated by a salary. ”

“ Section 77, sub. c (12) , which appears in the margin, [7] empowers the Commission to fix a maximum allowance 'out of the debtor's estate' for the expenses (including attorneys' fees) and services of 'trustees under indentures', for expenses incurred and services rendered 'in connection with the proceedings and plan'. It emphasizes that the expenses, the fees, and the services must be 'reasonable' and the allowance therefor 'reasonable'. The court is to make the allowance 'within such maximum limits as are fixed by the Commission'. ”

“ Amount of Allowance.—The relocation allowance granted to a worker under subsection (a) includes— `` (1) 90 percent of the reasonable and necessary expenses (including, but not limited to, subsistence and transportation expenses at levels not exceeding those allowable under section 236 (b) (1) and (2) specified in regulations prescribed by the Secretary, incurred in transporting the worker, the worker's family, and household effects; and `` (2) a lump sum equivalent to 3 times the worker's average weekly wage, up to a maximum payment of $1,250. ”

“ Under the second paragraph the net income is to be ascertained by certain deductions from the gross amount of income received within the year 'from all sources;' and the return to be made to the collector of internal revenue under the third section is required to show the gross amount of the income, received during the year 'from all sources.' The evident purpose is to secure a return of the entire income, with certain allowances and deductions which do not suggest a restriction to income derived from property actively engaged in the business. ”

“ Everybody who had to make a fixed money payment, such as rent or interest, would have had their payment doubled, for they would have had to produce twice as much to meet their obligations as originally sufficed for that purpose. ”

“ The national banks and trust companies in their returns to the federal government and to the state under the 12 1/2 per cent. income tax law are allowed certain deductions of income from specified types of securities in addition to the expense of conducting their business, bad debts, losses, etc. ”

“ Why should a man, whose income, perhaps derived from land or funded property below £150, pay nothing, while a hard working clerk, attorney, or country surgeon, who makes £155, and is not worth a tenth part of the other's realised capital, pays income-tax? ”

“ Wherefore when a man giveth out his money upon condition that he may not demand it back until a certain time to come, whatsoever his own necessities shall be in the mean time, he certainly may take a compensation for this inconvenience which he admits against himself: And this allowance is that we commonly call Usury. ”

“ We have held that if one, entitled to receive at a future date interest on a bond or compensation for services, makes a grant of it by anticipatory assignment, he realizes taxable income as if he had collected the interest or received the salary and then paid it over. ”

“ Payments by employers into employees’ funds.—Payments made by an employer into a stock bonus, pension, or profit-sharing fund constitute wages if such payments inure to the exclusive benefit of the employee and may be withdrawn by the employee at any time, or upon resignation or dismissal, or if the contract of employment requires such payment as part of the compensation. ”

“ The employer of a workman holds his livret as a pledge. When he receives money in advance, the sum is written in his book, and it is a debt there chargeable as a deduction of not more than one fifth upon all future employment, until it is paid. The workman when travelling must have his livret viséd ”

“ The contract of the company in respect to the subsidy bonds is to pay both principal and interest when the principal matures, unless the debt is sooner discharged by the application of one-half the compensation for transportation and other services rendered for the government, and the five per cent of net earnings as specified in the charter. ”

“ Certain deductions can be made in calculating income—such as working expenses, office expenses, pensions and other burthens, amounts paid for direct taxation, dues to commune and church, tithe, tenant and farming charges, heirs’ allowances and similar burthens ”

“ Being able to buy food where it is grown, cuts down expenses to a very small amount comparatively. When I told them this, one of them acknowledged that he could see that they would have less expense, but that they would still have need of money. ‘You bind us to take all we earn in scrip or shares for our labor?’ one of them asked of me. ‘Certainly,’ I said, ‘that is the protection of the society.’ But I told them they could buy money with their scrip. ”

“ And as these loans are intended to assist young married artificers in setting up their business, they are to be proportioned by the discretion of the managers, so as not to exceed sixty pounds sterling to one person, nor to be less than fifteen pounds; and if the number of appliers so entitled should be so large as that the sum will not suffice to afford to each as much as might otherwise not be improper, the proportion to each shall be diminished so as to afford to every one some assistance. ”

“ Bonus and other charges and loans to you are as high as the companies can get. Some of them ask the highest usurious rates allowed by your different legal state rates, and other charges are added—as much as they can milk out of you. ”

“ The legal rate of interest is twelve per cent., but no money, as a general rule, can be obtained on such easy terms. Twenty-four per cent., with ample security, is easily obtained for a loan, and sometimes as much as sixty per cent, a year is extorted by usurers in contributions of five per cent, a month. ”

“ Indeed, I said it was like the conduct of a man who possessing an income of 200£ per annum, should set apart, in a box as a Caisse d'épargne, 20£ annually, and at the same time continue a style of living, the annual expence of which would so far exceed his income, as to oblige him to borrow 7 or 800£ every year. ”

“ It is the compensation which the borrower pays to the lender, for the profit which he has an opportunity of making by the use of the money. Part of that profit naturally belongs to the borrower, who runs the risk and takes the trouble of employing it, and part to the lender, who affords him the opportunity of making this profit. ”

“ Thus, if money or property is placed in trust to pay the income to an individual during his life, or for a term of years, and then to pay or deliver the principal to the charitable corporation, or to apply it to a charitable purpose, the present value of the remainder is deductible. ”

“ Accrued Expenses represent usually the accumulating but unpaid claims against the business for service rendered it, as distinguished from the Accounts Payable, which usually represent purchases of an asset of one kind or another. Thus the amounts due at a given time to employees for work done since the last date of payment of their wages, salaries, or commissions, to the landowner for the rent of leased premises, to lenders for interest on moneys borrowed, are items properly to be listed under this title. ”

“ He invests a sum producing an annual income of twelve thousand francs, and to this amount loans of twenty to forty francs, without interest, will be advanced to married men out of work. These loans will only be made to workmen or workwomen with certificates of good conduct given by the last employer, who will mention the cause and date of the suspension from labour. ”

“ In the first place, the definition of income is broad, in one respect, in that it does attempt to include within the scope of the base used as the measure of the tax income received from tax-exempt securities-that is, government bonds and so on. * * * Interest from tax-exempt bonds is an exceedingly important item in a tax which is applied to banks. ”

“ The report names two reasons for recommending contributions to the fund by employers: first, “the employee should not in our judgment be re [Pg 119] quired to reduce his earnings further by the payment of contributions into reserves”; second, “the employer’s financial liability under the plan would operate as a continuous incentive to prevent unemployment as far as practicable.” ”