The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1933-06-10
Sweeping Changes in U. S.
Revenue System Adopted
in Measure.
GOES TO CONFERENCE
History Act Likely
to Be Enacted Finally
by Tonight.
BY MARSHALL M'NEIL
Times Special Writer


proved late Friday night by a
tired senate today must stand
the test of a conference of
congressman anxious to go
home Sunday.
The sons of the countrys two
foremost political dynasties, young
Bob La Toilette of Wisconsin and
Bennett Champ Clark of Missouri,
succeeded in having the senate vote
full publicity for income tax re-
turns, and also federal taxation of
all securities now tax exempt.
Tax Program Approved
The senate in approving the in
dustrial recovery bill, 81 to "a, like
wise passed the new employment
tax program, which for the first
time since war days levies on excess
profits of corporations.
This program, intended to raise
1927 100000, and plug up holes in
the law so that in the future J. P.
Morgan and his partners will have
to pay income taxes is expected to
prevail over the unemployment tax
plan of the house.
With the addition of the Clark
amendment, taxing the exempt Sc
curltieS, the total yield OF the bill
may be increased S150,O0OOOO to
200,OOO.OOO.
Levy on Exempt Securities
Senator La Toilette called upon
the words of his late illustrious
father, who nearly became Presi-
dent, to help him obtain income
publicity in the senate.
He cOmplimented that body on its
effort to plug up holes in the pres
ent Jaw, but asserted that full in
come tax publicity would do more
to stop tax evasion than any other
amendment conceivable.
The senate agreed with a tremen-
dous majority that the conference
today can not ignore. The vote was
SIS to 81.
Senator Clark, whose father also
nearly became our chief executive.
proposed his amendment taxing
tax-eXempts with only a few mo-
ments' debate.
The issue, he explained. had been
argued for years, but he pointed to
the TACT that the Constitution, in
the income tax amendment. per-
mlts congress to levy upon income
from Whatever source desired.
Sales Tax Is Defeated
Although he took cognizance of
the supreme court decision on this
issue, he said he believed congress
had a perfect legal and moral right
to tax securities now free of tax
Under existing law, state. county
and municipal bonds generally are
tax exempt, and practically all
United States Government bonds
are exempt from the normal in
come tax rates. Some are subject to
the surfaces.
All, under the Clark amendment
which probably will experience some
difficulty in surviving todays con-
ference, would be on the same basis
SUBJECT to normal and surfaces. The
Clark amendment was approved As
to 81.
Earlier in the night, the sales tax.
as expected, was given another
Walloping defeat.
The proposal, presented by Sen
ators David A. Reed rep. Pa.
David L Walsh Dem. Mass. and
Harry F. Byrd Dem, Va, proposed
a IA per cent levy on consumption.
the authors agreeing to certain ex-
ceptions, such as agricultural
products, clothing. medicine, etc.
Boost Gasoline Tax
This sales tax was also advocated
as the means Of repeating a large
group of the existing nuisance taxes.
among them the federal levy on
radios.
IF this is adopted" Senator
Reed said. "one can hear Colonel
Howe more cheaply" He was re-
ferring to Colonel Louic Howe.
Presi d mt Roosevelt's secretary.
whose broadcasting at the reported
fee Of 500 a minute has aroused
senatorial ire
The senates unemployment pro-
gram now consists Of these levies:
l. An additional Z cent gasoline
tax.
2. A Ito of per cent on the net
worth of corporations, and an excess
profits tax of per cent. starting
with profits over 1917 per cent, i'm
posed to assure no under-valuation
by corporations.
g. A flat per cent tax on divi-
dends.
House Plan Less Popular
4. An increase from q to / per
cent as the penalty for filing Of con-
solidated returns by corporations.
5. Several administrative changes,
which are expected 10 strengthen
weak language in the present law.
stop tax evasion, and increase rev.
enues.
6. Taxation Of tax-exempt secur-
ties.
Without the last named tax. whose
yield is uncertain. these leyies will
raise an estimated total of 1927. 000,-
BOO, more than enough to pay ann
Ial service charges on the $780,
200 900 public works bonds to be
Ssued under terms Of the same bill