Skip to main content

Search the Special Collections and Archives Portal

upr000283 221

Image

File
Download upr000283-221.tif (image/tiff; 26.88 MB)

Information

Digital ID

upr000283-221
    Details

    Rights

    This material is made available to facilitate private study, scholarship, or research. It may be protected by copyright, trademark, privacy, publicity rights, or other interests not owned by UNLV. Users are responsible for determining whether permissions are necessary from rights owners for any intended use and for obtaining all required permissions. Acknowledgement of the UNLV University Libraries is requested. For more information, please see the UNLV Special Collections policies on reproduction and use (https://www.library.unlv.edu/speccol/research_and_services/reproductions) or contact us at special.collections@unlv.edu.

    Digital Provenance

    Digitized materials: physical originals can be viewed in Special Collections and Archives reading room

    Publisher

    University of Nevada, Las Vegas. Libraries

    effect during the year 1951. The latest information from Washington is that the Senate Finance Committee has tentative­ly approved the corporate tax rates contained in the tax hill passed by the House. Under the House bill the rates are 27$ on normal income and 25$ on surtax income, or a combined tax rate of 52$ instead of the 47$ rate used in our calculations. The combined income and excess profits tax rate under the House bill is fixed at 82$. Furthermore, it is proposed to make the corporate tax rates under the new bill retroactive to January 1, 1951. These developments show the tremendous handi­caps, under which public service corporations operate because their earnings cannot be quickly changed to meet the impact of such additional costs. No wonder we read advice in the finan­cial papers that investment in the common stocks of utilities whose rates are subject to public control is a poor hedge against inflation. The certainty of substantial income tax increases is a factor which of itself alone should cause this Commission to be liberal and not overly conservative in its estimates of the costs which the Water Company is expected to incur. It is significant to note that if we disregard en­tirely all other errors in the opinion which we have pointed out relating to either the Railroad Company or the Water Com­pany and simply correct the opinion by making proper allowance for three items we have just discussed, the revenue deficiency calculated under the methods used by the Commission becomes -67-