Evening star., 1933-12-19
Dickinson Joins International
C. of C. against Foreign
Credit Abolition.
DOMESTIC CONCERNS HIT
INCOME CONSOLIDA
Connally to Fight Proposal Requir-
ing Husband and Wife to Pay
on Single Estate.

BY the Associated Press.
Two proposals by which the House
Ways and Means Committee hopes
to raise s3O,0OO,OO0 annually in in
come taxes were vigorously criticized
today by representatives of the Roose-
velt administration and American busi-
ness enterprises.
Assistant Secretary Of Commerce
John Dickinson Joined with the In
ternational Chamber of Commerce in
opposing the proposal whereby Ameri-
can concerns operating in foreign
countries should not be allowed credit
for tax payments abroad against in
come levies here The committee es-
Inmates it would increase Federal reve-
nue. s1O,OOOOoO annually by banning
such tax credits.
Domestic concerns were placed on
record against the proposed abolition
of consolidated income tax returns by
which the committee hopes TO raise
$40, 1000 additional taxes year.
Citing the statement Acting Secre-
tary OF the Treasury Morgenthau made
to the committee in opposition to for
eign tax credit elimination, Dickinson
and Mitchell B. Carroll of New York,
representing the American section Of
the International Chamber of Com
merce, predicted the American export
trade would be injured.
Dickinson Favors Principle.
Dickinson said the committee pro-
posed to reverse the policy of the Gov
ernment against double taxation adopt
ed in 1915.
1T is hardly a favorable time to i'm
pose an additional tax burden on our
foreign trade" said Dickinson, who
was subjected to cross-fire of ques-
tions by committee members as to his
knowledge of the foreign tax credit
statutes and their results.
Pressed by Representative Vinson,
Democrat of Kentucky, Dickinson con-
ceded ne was not an expert on taxes
and that he was not familiar with the
statutes on the question. but added:
Il favor the principle"
The committee proposes that instead
of American concerns getting a nat
credit against their income tax pay
ments to the United States for the
amounts paid foreign governments they
would be allowed to deduct the foreign
payments from their gross income.
Carroll said the Double Taxation Com
mittee of the International Chamber
Of Commerce Endorsed Morgenthau's s
, stand for continuation Of the foreign
tax credits. He declared 10 per cent"
of the American population was de-
pendent directly or indirectly on foreign
trade and that if the committees pro-
posal was adopted many American con-
Germs would be unable TO compete in
foreign countries.
To Resist Treasury Proposal.
Meanwhile. Senator Connally, Demo-
crat of Texas, said today he would
strongly resist the Treasury Depart
arate community income tax returns.
The Treasury's recommendation
would require husband and wife in
community property States to file a
| joint return and pay income taxes on
the basis of single estate.
"As a member of the Finance Com
mittee of the Senate l shall strongly
resist changing the law as it now exists
and has existed for many years. Con-
nally said. There are eight COM
munity property States and this would
be most unjust TO them 10 change the
basis of taxation"
George P. P. Bonnen of Pittsburgh.
tax consultant for the Armstrong Cork
Corporation of Pennsylvania, predicted
that if the consolidated returns for
corporations are abolished, the Treas
ury would not receive the S20000,00
estimated by the committee but that it
would actually lose money.
Many Firms Would Be Affected.
Dickinson said '..Iat when an Aneri-
can concern operating in a foreign
country pays property taxes to the
foreign nation and an income tax to
the same country, 1t does not seem to
me that that income should be taxed
again"
Under present law. American concerns
their income tax returns here and are
allowed to deduct the amount paid
foreign nations.
Under the committees proposal, they
would be allowed to deduct the taxes
paid foreign countries from their gross
income.
Vinson made an effort to elicit from
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