Financial contribution

“ When interest on state obligations is not paid at least annually, there shall also be contributed to a sinking fund at least annually, the amount necessary to bring the balance thereof, including income earned on contributions, to the accreted value of the obligations to be paid therefrom on the date such contribution is made, less the sum of all required future contributions of principal, in the case of sinking fund obligations, or payments of principal, in the case of serial obligations. ”

“ In addition to or as a substitute for net income as an index of going-concern value, a purchaser might have been influenced by such evidence of expenditure upon building up the business as petitioner's records of payments to deliverymen for the solicitation of new customers. Instead of beginning with excess earnings resulting in part from expenditure on solicitation and then capitalizing them to reach going-concern value, such expenditure can be regarded as a direct contribution, in proportion to the amount of its long-term effectiveness, to the capital assets of the business. ”

“ With the third method a permanent increase is secured in the capital funds available for use in the business. Financial policy, governed by the needs of the business and its markets, will always dictate the method to be used for extinguishing or contracting a debt. ”

“ To create a National Fund, out of which there shall be paid to every person, when arrived at the age of twenty-one years, the sum of Fifteen Pounds sterling, as a compensation in part, for the loss of his or her natural inheritance, by the introduction of the system of landed property. ”

“ In case of the capital increase, the person who has subscribed for the capital contribution shall have the same rights as the existing member with regard to the dividend from the time of payment for the capital contribution and of the transfer of property which is the subject-matter of the contribution in kind. ”

“ Is it for the best financial interest of the company to borrow on short or long time, to create a floating or a funded debt, etc.—these points require consideration and can, of course, be answered only in the light of the conditions prevailing in each case as to the status of the working capital requirements. ”

“ The funding system is not money; neither is it, properly speaking, credit. It, in effect, creates upon paper the sum which it appears to borrow, and lays on a tax to keep the imaginary capital alive by the payment of interest and sends the annuity to market, to be sold for paper already in circulation. ”

“ This sum, together with government subsidies and other sources of income, will yield, we are told, a gross income of 438,000l.: a sum which it is estimated will not only pay working expenses and a handsome dividend to both old and new shareholders, but will yield a balance for a reserve fund, more than sufficient to lay a second cable in every two and-a-half years. ”

“ The net output thus obtained is obviously for each industry the only fund from which first, wages, salaries, interest on capital, rent, royalties and profits are, or can be, paid, and secondly, taxes, rates, depreciation, advertisement and sales expenses. ”

“ The application of an accumulated fund by the Government to the payment of its running expenses is a duty. An individual living beyond his income and embarrassing himself with debt or drawing upon his accumulated fund of principal is either unfortunate or improvident. ”

“ A membership of ten thousand would make a total income for the office, counting expense fund and loan committee fund, of three thousand five hundred per week, steadily, week in and week out, with endless possibilities of increase. ”

“ If the income of any such fund in any year is more than a sum which, if annually added to such fund would, with the fund and its accumulations as aforesaid, retire the debt at maturity, the excess income may be applied to the interest on the debt for which the fund was created. ”

“ Even the best of the Benefit Societies have been slow to learn the essential importance of adequate rates of contribution, to enable them to fulfil their obligations and ensure their continued usefulness as well as solvency. ”

“ The chief source of revenue is from indirect taxes, which bring nearly 10,000,000, while the greatest expenditure is for the payment of the interest on the debt, which with the sinking fund demands upward of 7,000,000. ”

“ Whatever is spent, cannot but be drawn from yearly income. The whole and every part of the wealth produced in the country, forms, or helps to form, the yearly income of somebody. The privation which it is supposed must result from taking the amount in the shape of taxes is not avoided by taking it in a loan. ”

“ 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 fundholder, when paid off, would still desire to draw an income from his property, most of which therefore would find its way into productive employment, while a great part of it would have been drawn from the fund for unproductive expenditure, since people do not wholly pay their taxes from what they would have saved, but partly, if not chiefly, from what they would have spent. ”

“ That division, made under the eye of a magistrate, is what we call a contribution. If you owe ten thousand francs, and your creditors issue writs of attachment on a debt due to you of a thousand francs, each one of them gets so much per cent, 'so much in the pound,' in legal phrase ”

“ Originally consisting of the contributions of members only, the earnings now make up considerably more than one-half of the whole. The contributions were made for, and have been used to serve, the double purpose of protection and of investment. ”

“ By empowering such an authority to buy the companies out in full, with money borrowed at 3 or 31⁄2 per cent., we should come into possession of their works at an annual charge for interest, less, by nearly two-fifths, than our present annual payment to the companies ”

“ All my life through—from the time when my income was not a tenth part of what it is now—I have felt it a duty, while endeavoring to discharge all proper claims, to live within that income, so to adjust my expenditure to it that there should be a margin on the right side. ”

“ Computing the average annual return from these funds at five and one-half per cent, we should have an assured income of five hundred and fifty thousand dollars a year, or about seven dollars for each man, woman, and child. ”

“ Where the revenue is 5,000 francs, they can accumulate a sum only equal to three times their annual expense, and for others the reserve fund should not be in excess of over six times the annual outlay. ”

“ 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. ”

“ Support to the view that the list of an individual should include undivided as well as divided profits is derived from the requirements of the one hundred and twentieth section, which levies a duty of five per centum on all dividends in scrip or money thereafter declared due, whenever the same shall be payable to stockholders, policy-holders, or depositors, as part of the earnings, income, or gains of certain described companies, not including manufacturing companies, and on all undistributed sums, or sums made or added during the year, to their surplus or contingent funds. ”

“ Taxation is a practical matter and those practical considerations which support the treatment of the disposition of one's income by way of gift as a realization of the income to the donor are the same whether the income be from a trust or from shares of stock or bonds which he owns. ”

“ The only money coming back to us at present from the East, which first goes there to pay interest, is about one hundred and sixty million a year paid by the government in pensions ; salaries paid to government employés, and money received in payment for produce on which there is no margin or profit. ”

“ Funded income arises from the possession of wealth or of claims on wealth, such as lands, railroad stocks, government bonds, etc. The income is "funded" because it corresponds to an abiding fund of wealth. The income arising from current labor is unfunded, because there is no permanent fund of accumulated wealth corresponding to it. ”

“ If there were no interest at all, he would have to put by from his income his entire old-age fund. If the rate were a hundred per cent per annum, taking a very small part of the fund out of the income of his active years would suffice, since the fund itself would earn the remainder. Is the income which is provided for the future to be treated as a variable amount in addition to some other income, or is it to be regarded as a fixed amount, which is needed for some definite purpose? ”

“ To estimate, therefore, the total value, in any nation, of what is the object of taxation, we must go another way to work. The first article must be the annual income of all funds. By funds, here, I understand the capital wealth already made, in opposition to the produce of industry, which may be considered as the materials of which such funds are composed. The fund therefore is the accumulation of savings, which, not having been spent by the industrious, form 587a capital of a nature to produce an income, either from land, or from any other valuable thing. ”

“ In the case of a policy of guaranteeing the quality of a product or its workmanship, after a few years’ experience very accurate estimates can be made of the loss to be expected therefrom, and at the end of a fiscal period the books can be adjusted on that basis just as they are for taxes. A charge to a suitable expense account and a credit to a reserve or accrued account comprises the book entry, with a listing of the reserve as a real liability. ”

“ No language could be more comprehensive. It embraces income of every description, whether derived from labor or property, and it particularly mentions income derived from interest and dividends, adding the words, 'or from any source whatever.' It is not to be doubted that it includes income derived from dividends on stock held in railroad companies, and income received as interest on bonds of such companies. This section, I think, is the only one that imposes any income tax. ”

“ The Commissioner ruled that 'Since the capital loss of $154,921.98 is in excess of adjusted ordinary net income of $94,963.52 (without contributions) there is no net income against which to make a deduction for contributions'. ”

“ That when any dividend is made which includes any part of the surplus or contingent fund of any bank, trust company, savings institution, insurance or railroad company, which has been assessed and the duty paid thereon, the amount of duty so paid on that portion of the surplus or contingent fund may be deducted from the duty on such dividend. ”

“ This definition, frequently approved by this court, received an addition, in its latest income tax decision, which is especially significant in its application to such a case as we have here, so that it now reads:
'Income may be defined as a gain derived from capital, from labor, or from both combined, provided it be understood to include profit gained through sale or conversion of capital assets.' Eisner v. ”

“ The government obtained a large sum at the time, with the necessity of only paying a small sum every year for interest; investors obtained a remunerative use for their money, and if they should need the principal, some one else was always ready to pay its value to them for the sake of receiving the interest. ”

“ 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 ”

“ Now three hundred thousand independent people, with an income of fifteen thousand francs, represent the sum total of those who live on pensions, on annuities and the interest of treasury bonds and mortgages. ”

“ To the credit of the account he pays in such sums as he may not have occasion to use, and interest is charged or credited upon the daily balance, as the case may be. From the facility which these Cash Credits give to all the small transactions of the country, and from the opportunities which they afford to persons who begin business with little or no capital but their character to employ profitably the minutest products of their industry, it cannot be doubted that the most important advantages are derived to the whole community. ”

“ The reserve fund was created to meet the losses of bad years and equalize dividends when profits were small, the provident fund to take care of the sick, the disabled and the families of deceased laborers. After five years the manner of division was changed so as to yield 2 per cent, dividends on wages for every 1 per cent, on capital, and in place of a fixed per cent, for the special funds whatever was necessary for these purposes was to be paid out of gross profits. ”

“ For five or six years the income has not been forty thousand, but there has been no reduction in the style of expenditure. Whence comes the money? Not a burden has been shaken off, fresh are annually heaped on. ”

“ Let every one contribute, according to his ability, towards the common fund, of which an accurate account will be kept; and the amount subscribed, let it be ever so small, shall yield interest at four per cent., as pre-arranged ”

“ The working organization, after providing the means to renew the value of the resources expended in work, and after allocating a part of the created value of the product for equalization of working conditions and acquisition of income, shall apportion the income of the working organization into a fund to expand the material basis for work and a fund to satisfy the personal and common needs of the working people. ”