Evening star., 1933-06-05
SuppIants House Increases
of Rates on Small
Incomes.
WILL VOTE ON LICENSE
FEATURE LATER IN DAY
Senate Committee Accepts Proposal
for Ban on Shipment of Oil
Produced Illegally.
BY the Associated Press.

By the Associated Press.
The Senate Finance Committee today
adopted the Harrison tax program to
finance the $4,000 000,0 900 public works
project in the industrial recovery bill.
1t eliminates the House increases of tax
rates on small incomes.
After voting this into the bill, the
committee recessed until late in the
day to vote on motion to reconsider its
rejection last week of the provision
authorizing the President to license
industries in enforcing codes of fair
competition.
President Roosevelt has urged the
committee to reinstate the provision
which is regarded by the bills propo-
nents as the only weapon to hold over
industries which refuse to cooperate
in the recovery program.
Sales Tax Move Fails.
The tax program of Chairman Harri-
son Democrat OF MississippD was ap-
proved after a motion to reconsider re-
lection Of the sales tax had lost 10 to 8.
Sales tax advocates gained one more
vote compared with last weeks 10 to 8
rejection.
Harrison's program provides for a
capital stock tax of one-tenth Of per
cent on the fair valuation of corpora
tions, which is estimated to raise $780,
600, 900.
Would Tax Dividends.
Corporations would be left to declare
the valuations on which the tax would
be placed and a penalty levy of per
cent would be imposed on surplus
profits over 1212 per cent.
The tax plan also called for an in
crease OF one-half cent in the exist
ing 1-cent-a-gallon gasoline tax, de-
signed to raise $62 100000 The House
bill provided a raise Of three-quarters
OF cent.
The substitute further provides for a
hat per cent tax on corporation diyi-
dends deducted from the sources, esti-
mated to raise $4,000, 900, and three
amendments to administrative sections
OF existing law designed to close loop
holes developed by the j. P. Morgan
investigation.
These changes would prohibit the
carrying over into succeeding years, to
apply against gains, any losses on
stocks and bonds; deny private bank
ers the right to deduct such short
term losses On stocks and bonds from
their ordinary income and deny indi-
Wdual members OF partnership the
right to charge of on their personal re-
turns their shares In any partnership
losses.
Acts Against Undertaking..
The plan also calls for extension for
two years beyond July Of the consoli-
dated return provision and increased
the tax penalty from n to / per cent
where consolidated returns are made by
corporations and chains in place Of
individual company returns.
Harrison said the 5 per cent addi-
tional tax on stock valuations over
1914 per cent was placed In the bill as
a governing wheel so corporations in
fixing their stock valuations would not
undervalue.
Earlier the committee approved an
amendment authorizing the President
to ban interstate shipments of illegally
produced oil.
The amendment was proposed by
Senator Connaly, Democrat, Texas, and
reads as follows:
THE President is authorized to pro-
hibit the transportation in interstate
and foreign commerce of petroleum and
the products thereof produced or with
drawn from storage in excess of the
amount permitted to be produced or
withdrawn from storage by any State
law, or valid regulation or order pre-
scribed Hereunder, by any board, COM
mission, officer or other ouly authorized
agency Of State"
Plans for putting thousands Of unem-
ployed men to work at public construc-
tion are taking shape rapidly while, at
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