AbstractUnder the present federal statute (Sec. 5219) authorizing the states to tax national banks, the states are given three optional methods of bank taxation. Under the second of these options, which MAssachusetts has chosen, a tax may be laid on the “net income” of national banks at the same rate assessed upon other financial corporations provided such rate shall not be higher than the highest of the rates assessed upon mercantile, manufacturing and business corporations. When this option is taken advantage of by a stae the question is raised, how shall net income be defined and what rate is to be applied The banks and the mercantile, manufacturing and busingess corporaions mut be treated alike so that there are many difficulties inteh way of legislative and tax authorities. The following statemnet by the Massachusetts commissioner of corporations and taxation throws a great deal of light oonthe decision which was reached at the recent session of the MAssachusetts General Court.