Portwar Tax Treatment of Cooperatives
The dollar volume of business transacted by cooperative organizations in the United States increased substantially during World War II. At the same time federal income and profits taxes, under which cooperative enterprises enjoy substantial advantages, were slicing heavily into the earnings of incorporated businesses. The apparent injustice of this unequal bearing of the tax laws has generated a movement for federal taxation of the earnings of cooperatives “under the same rules and at the same rates as private businesses are now taxed.”1
The subject has received attention from the Small Business committees of the Senate and House, the Joint Committee on Internal Revenue, and the Bureau of Internal Revenue in the Treasury Department. It will shortly receive consideration from the Ways ...