The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1932-06-04
ELECTRIC TAX
RATE DRAWS
SENATE FIRE
Levy of 3 Per Cent on Con-
sumner Is Made by
Conference Bill.
VOTE DELAY F0RESEEN
NebraSkan Raises Point OF
Order That Possibly Will
Hold Up Action.
BY MARSHALL M'NEIL
Times stan Writer

WASHINGTON. June "A tax
on electricity which the house as a
whole never acted on, and which
the senate turned down twice. is
before congress today for approval
IN the tax bill conference report.
This is the levy Of 3 per cent on
electricity consumed in homes and
BY commercial enterprises. to be
paid by the users.
II is said that electricity is a ne
cessity in more than 10 per cent
OF the homes Of America.
This replaces the tax on electrical
energy which the senate voted,
apparently IN the hope that it would
not be passed along so easily.
This senate tax. incidentally, was
calculated to please consumers more
than the power companies, and the
reverse is said of the tax agreed to
By the tax conferees.
Snag May BE Struck
Political prophets say the confer
ence report will be agreed to by the
house early today, approved by the
senate this afternoon, and that the
SLID 900. 900 budget balancing reve-
nue. bill will be at the White House
for President Hoover's signature by
tonight
But there is possibility that the
conference report may stumble in
the senate on this very electricity
tax issue.
Senator Robert B. Howell (Rep,
NebJ. author of the electrical tax
amendment which the senate ap-
proved, will raise a point of order
against the new levy. arguing that
there was nothing in either the
house or the senate tax bills, which
permitted the conferees to write in
the consumers tax.
Tax on Consumers
I'VE levied a tax on the power
companies" Howell said, and the
ccnferees levied a tax on power
consumers. The conferees exceeded
their powers"
Pointing out that his amendment
taxed industrial users of electric
energy while the new tax is levied
only on domestic and commercial
users. Howell declared the conferees
had favored the power users who
pay least, and who are in a posi-
lion TO bargain for rates.
Domestic consumers. he said. pay
most for their power and can not
bargain.
II Howell's point Of order is up
held. the bill will 60 back to con-
ference.
This tax first was proposed to the
senate by the finance committee as
a per cent levy on domestic con-
sumption Of electricity and gas, to
be paid by the consumers. II was
rejected. As TO 40.
Amended by COnfereeS
Senator David A. Reed CRep..
Pa. in an effort to get the tax
approved, amended it by providing
that electricity and gas used in
commercial business should also be
taxed. He also reduced the rate TO
4 per cent.
This was defeated by an even
larger vote. ~ to 50. with fourteen
senators not voting.
Then. the senate adopted the
Howell amendment. which it con-
sidered less discriminatory, for It
levied 3 per cent on power sold by
power companies. the impost to be
paid by the utility concerns. Sew
eral senators expressed hope that
this would not be passed on directly
10 consumers.
This amendment. which was
agreed to. 81 TO 10. read as follows:
There is hereby imposed upon
energy sold by privately owned. OPP
Grating electrical power companies
a tax equivalent to 3 per centum of
the price for which so sold
Twice Killed by Senate
This provision, however. was
killed in the joint house senate tax
conference. and for it was substi-
tuted one which is practically word
for word the same as the two the
senate rejected. The tax in the con-
ference report is stated in these
words:
There is herby imposed a tax
equivalent to 3 per centum of the
amount paid on or after the III
teenth day after the day Of the en-
actment of this act. for electrical
energy for domestic or commercial
consumption furnished after such
date and before July l. 1884. to be
paid by the person paying for such
electrical energy and to be collected
by the vendor.