The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1932-04-28
new TAXLOAD
HITS MAN Of
SMALL MEANS
Normal Income Levy viii
Be Nearly Doubled by
Senate Bill.
FIGHT STOCKS IMP0ST
Roar of Protest ReSoundS
Through Wall Street
Over Proposal.
BY MARSHALL M'NEIL
Times staff Writer

WASHINGTON, April 28.-Hav-
ing placed new and heavier tax
burdens on persons Of modest
means, the senate finance commit
tee today was expected to determine
whether Wall Street stock transac-
tons should also pay higher levies.
This source of revenue was tapped
in the house bill to yield about
500 100000 annually.
But protests. of stock exchange
officials and brokers, combined
with sharp drop in market prices,
blamed by some on the house levy
may result in lowering this impost.
In the house bill, the tax was
fixed at one-fourth Of per cent Of
the selling price of stocks. An effort
viii be made in the senate commit
tee today to reduce this at least to
one -eight of l per cent.
Committee decisions on important
special excise taxes in the house
bill, such as those on autos, radios,
matches, wort, malt, ETC., are also
expected today.
If the committee progresses today
as it did Wednesday, the tax bill
may reach the senate early next
week.
House Bill Rewritten
The house bill practically was re-
written by the committee Wednes-
day, to add burdens to persons OF
modest means.
The senate committee deleted
taxes amounting to approximately
$500, 100000, but at the same time
added new taxes that will prac-
tically make up that amount.
The committees chief changes
follow:
/. 1t almost doubled normal in
come taxes. Instead of IL per cent
as in the present law, or per cent
as in the house bill, it levied 3 per
cent on the first $4,000 of net in
come.
On the next $4,000 it levied per
cent, as compared with in the
present law and in the house bill.
1t levied per cent on all income
in excess of $4,000, as against per
CT in the present law and 7 per
c. = the house bill.
Slightly Boosts Surtaxes
This is expected to raise about
100000 in the next fiscal year, or
for half of the calendar year. 1t
cd not change personal exemptions
Of $1,000 for single person and
$4,000 for a married person..
2. 1t increased only slightly the
surtaXes On the large incomes, after
turning down the proposal of Sen
ator James Couzens (Rep. Mich0, to
reimpoSe wartime rates.
The new surtaXes levy a maximum
of As per cent on net incomes in
excess of 100000, meaning that
persons with net incomes in excess
of $5,000,O0O or $10000,0O0 will pay
exactly the same percentage of tax.
This vii raise about 100000
next fiscal year.
8. 1t approved house estate and
gift tax rates.
4. 1t placed 2-cent stamp tax
on all bank checks drawn for a sum
in excess of SIS. This will raise about
5O,00o,0 600.
S. 1t increased corporation and
insurance company taxes by one
half of per cent, from 1872 to IA.
The rate is now II per cent. This
will yield about 100000.
Tax Presidents Income
s. 1t reversed the house exempt
dividends from normal income
taxes. thus losing about $50 ,0000 900.
7. 1t over-rode the house and
eliminated the IL per cent penalty
for corporations filing consolidated
returns and thus lot another
SIS, 900 900.
8. 1t reduced the tax on lubricat-
ing oil of all grades from to 2
cents a gallon, losing another ST.
100000.
9. 1t provided that in the future
salaries of the Presidents and fed
eral judges, now exempt, shall be
subject to income taxes.
TO- 1t subjected payments by the
government to ex-soldiers to the in
come tax.