The Waterbury Democrat., 1932-03-04
INCOME TAX RATE
| MAY BE REVISED
| IN DRASTIC WAY
Persons Who Evade Law
By Dumping Stocks
May Be Hit - Hoover
Plans on Market Get
Setback
By THOMAS I. STOKES

United Press Staff Correspondent.
washington. March 4.-UP)--
A drastic revision of income tax
statutes hitting directly at persons
who invade the law by dumping
stocks at deprecated prices was
before the house ways and means
committee to-day. Its inclusion
in the new revenue bill is predict
ed.
Under present law. stock market
losses may be deducted from in
come for purposes Of taxation. The
new provision permits deduction
only to the amount Of gains previ-
ous1y made in the same taxable
year. For Instance, IL there Is a
loss of 100000 and a. gain of $780,
600 the taxpayer under the re-
vised statute may deduct only $10.-
600 instead of the $4,000 he Is
allowed to charge off under the
present law.
The ways and means committee
continued to-day to grapple with
the manufactures sales tax prob
lem raised by difference OF
opinion among members over the
rate. The subcommittee which
prepared the schedules recom-
mended o two-and-a-quarter per
cent rate, but some members, un-
der pressure from all sides, are
holding out for flat two per cent
rate or even less.
With the committee nearly fin
ished with Its work, the United
Press is able to reveal other pro-
visions of the measure.
Normal income tax rates will be
two per cent for the first $4,000 OF
taxable income; four per cent fol
the next $4,000 and 8 per- cent
above. that. Present rates are one
and half, three and five per cent
respectively. L
Exemptions will be $1,000 for a
single person and $4,000 for mar.
ried persons They are now ST.
500 and $500.
Income that may be considered
earned income" on which q %
per cent credit Is allowed before
the tax Is estimated. Is reduced
from $4,000 to $4,000. This
will bring In additional revenue.
Surtax rates will begin with one
per cent on incomes of $4,000
| graduating to 40 per cent on | n.
comes OF 100000 and over.
Estate tax rates will graduate
| from per cent under $4,000 tt
40 per cent over $10,000,000. The
gift tax carries n 100000 exemp'
ton and provides rates ranging
from one and a half per cent ur
to $4,000 above this exemption. tt
30 per cent on gifts Of $4,000
! 600 and over.
Hoover Plans Crashed
Washington, March 4-UP)-
Administrative plans for q stool
market investigation limited e
bear raiders have been smashed
by determined majority Of thu
senate banking and currenc!
committee. A resolution authoriz
ing an all-incluslve investigation
OF security markets has been re
ported favorably to the senate. !
Is proposed to spend $4,000 in
ton to determine whether abuse
borrowing and lending of secur
tiles.
The resolution includes author
| AEdtloU tOF ah hheV tA'
present value of stocks. Admin
istration senators unavailingl
protested this widening Of tn,
scope Of the inquiry. They hop
at least to get that provision on
OF the resolution when It comes vi
on the floor.
Senator Walcott. republican
Connecticut. presented Mr. Hoov
ers STORYTELLING inquiry propos
ais to the senate. A bi-partisa
group seized the plan and ra,
Iaway with 1t. Protests and NJ
Hoover's desire merely to publiciz
suspected short interests were is
nored. ..
The administration won on onl'
q single point In the COMMITTEES
when II was able to limit the In
vestigation to this session of con
gress. Otherwise the hearing coul'
have proceeded intermittent
through the summer and durini
the campaign.