Evening star., 1927-11-02
CORPORATION TAX
SLASH ADVOCATED
Business Delegates Appear
Before House Committee
With Plea.
By the Associated Press.

By the Associated Press
Reduction of the tax on the income
OF corporations from 1872 per cent to
10 per cent. was advocated today by a
number of representatives of national
business organiza tions in testimony
before the House ways and means
committee. which earlier in the week
received administration recommenda-
tions that the corporation levy should
be cut to only IL per cent.
During testimony by P. w. Pinker-
ton, representing the Illinois Cham
ber of Commerce, Chairman Green
of the committee interrupted to say
that, in his opinion, doing business in
corporate form afforded a number of
benefits not enjoyed by individuals
and the witness replied he merely
wished to advise the committee the IL.
linois Chamber regarded the present
1874 per cent rate as excessive.
Hits Favored Rate.
Pinkerton recommended elimination
of the favored rate on earned incomes,
because of difficulty of administration.
He urged that adjustments be made
in rates applicable in lower brackets
same savings for taxpayers without
the necessity for additional compi-
Gated computation.
For more than a year, agitation has
existed both in and out of Congress
for reduction of this levy. now 1917
per cent of a corporations net income
after certain deductions have been
made. During the two preceding days
of the present tax hearings, the cor.
poration rate occupied a conspicuous
place in all discussions and there is
practical unanimity of opinion that
the fixing of a new rate on corporate
bodies will be a controverted subject
throughout the writing of the new
revenue law.
The administration in presenting it's
program for a 1925 100000 tax cut,
recommended reduction of the corpo.
ration rate to IL per cent, and al
though Republicans generally have
refrained from comment on the pro-
posal, number preceding the start of
committee hearings announced they
would favor slash to II per cent.
Democrats. on the other hand. have
voiced determined opposition to the
Treasury suggestion. holding that the
levy should be cut to a fiat rate of
10 per cent. Representative Garner
of Texas. ranking minority member
OF the committee. repeatedly has an
nounced that he believes the Treasury
has underestimate the amount that
will be available for tax reduction
and that the prospective surplus will
be ample to warrant a cut of $780,
100000. arguing that. because of this,
a 10 per cent rate for corporations
can be affected
Simmons Asks Slash.
Senator Simmons of North Carolina,
ranking Democrat on the Senate
finance committee. after call at the
White House yesterday, also came out
for a $400.000.000 reduction and the
fixing of the corporation levy at 10
per cent
The United States Chamber of Com.
merce also was placed on record be-
fore the committee yesterday as hold.
ing views that correspond with the
Democratic position. and practically
all witnesses examined to date have
argued that downward revision of the
corporation rates should receive the
closest attention of the committee
Alfred B Thorn, representing the
Association of Railway Executives, the
first witness today, urged the commit
tee to devote paramount attention to
reduction of the corporation tax. as
did c. s. Duncan. representing the
same orga ton. Duncan advocated
reduction of the rate to 10 per cent.
declaring: "The Federal tax paid by
class l railroads in 1926 amounted to
$109. 1877 .494."
Under questioning. Duncan said the
railroads were not insisting that all
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