Evening star., 1933-05-27
SENATE EXPECTED
TO CHANGE HOUSE
! INCOME TAX PLAN
Industrial Control Bill Passed
After Sales Levy Is
Rejected.
CAPITAL LOSS DEDUCTION
is LIMITED TO ONE YEAR
s2,oOo,o 100000 to Go to States for
Public Works and $4oo,-
100000 for Roads.
pvtha ASeociated Press,

BY the Associated Press.
Earlv Senate consideration OF the
income tax program in the S3,3oo'ooo'-
900 public works-industrial controi
measure was looked for today following
passage of the legislation by the HOUSE
late yesterday and the crumollns u
the revolt that had threatened tne 'aA"-
ton provisions of the bill.
Favorable action in the Senate Is
expected by Democratic leaders aleef
the income tax program, approved Wy
the House. is revised to ease the Dull oeA
on persons of small incomes.
BEFORE passing the bill by wide mar
r;,, 2o9 fo 76. the House voted GOWN
en- attempt by Representative McCoI-
n,ack democrat. of Massachusetts, W
insert a 21s per cent general .m Iialt ~
fact,,rers' sales tax into tne Jill w
finance the public works BOND issue. q,
In rejecting the sales tax, 265 10 IoI'
the House approved revenue piosi On.
Increasing income and gasoline taHes
and making corporate DIVIDENDS suoJec'
to the higher income leVles.
Carryover Of Losses Halted.
The taxes are designed to raise S22o,,,
600 600 annually to cover lnterest auo
onoortization charges on the bond issue.
without a dissenting vote, the HOUSE
odonted an amendment by Represent
ative Ragon. Democrat of Arkansas, oe-
signed to prevent income taHpayeis
from charging off year-old losses III
making out income tax returns.
This amendment grew out OF the ols-
closures before the Senate BANKING
Committee investigating j. r. Morgan
& Co. Ragon told the House tnat nau
this amendment been in the law, IL Wouia
not have been possible for Morgan anu
his partners to avoid payment OF eaAes.
If limits to the current year deductlons
of net losses of all descriptions sustained
by individuals and partners. Under tne
present law, a years carryover Is al
lowed. .,. poos.
The bill empowers President Roose-
Welt to establish fair codes CT compe-
tition in industry, through suspension
of the antitrust laws.
He is empowered to fix maximum
working hours and minimum wages Tor
workers in industry
s2,0oo, 100000 to States.
The public works program has been
estimated capable of giving about f..
600 OOO men jobs. About $4,000, 100000
is to be advanced to the States ano
local governments, 70 per cent in loans
and so per cent in outright gifts.
In addition, s4o0,000,000 IS to be
given the States for highway construc-
tion. This is to be distributed on the
basis Of cne-haf for population and a
fourth each for area and post ROAD
mileage.
This ALLEGATION was inserted in an
administration amendment offered by
Chairman Doughton of the Ways and
Means Committee. who piloted the
measure through the House.
Attempts were made by Representa-
tives Fuller, Democrat, of Arkansas,
and Blanton, Democrat, of Texas, to
restore the cid basis of ALLEGATION OF
one-third each on population. area and
post read mileage IN the States: On
a fnar record vote, however, the change
was approved 222 to 181.
The balance of about $500 1000 QUO IS
to be expended on Federal projects, in
cluding a S100,000,000 Naval construc-
ton program, public buildings, rivers
and harbors, flood control and tor
preservation of natural resources.
R.F. &C. Duties Transferred.
Already the administration is pre-
pairing to put the works under this
legislation into effect. Brig. Gen. Hugh
(Continued on Page 2, Column ~