Evening star., 1934-04-06
Higher Income Levies
Beaten, Lawmakers Turn
to La Toilette Bill.
MEASURE WOULD RAISE
RATES TEN PER CENT
Harrison Says Compromise Figure
May Be Accepted and Amend
ment Sent to House.
BULLETIN.

BULLETIN.
The Senate today rejected by AZ
to 36 proposal for sharp in
creases in taxation on "excep-
tional' capital net gains where
they occur frequently during a
five-year period.
BY the Associated Press.
Senators who want to redistribute
wealth concentrated today on a drive
to increase the estate taxes sharply.
Beaten back in their move to hoist
income taxes to wartime levels, lib
erals from both political parties
turned their "heavy-levies- the
rich campaign to the support of the
La Toilette estate transfer amend
ment.
The plan for which Senator La Fol-
lette sought approval today calls for
rates of 27 to go per cent on estates
valued from 81 100000 to more than
$40 100000. The Senate Finance
Committee of which Senator Harrison,
Democrat, of Mississippi is chairman,
favored rates Of 20 to so per cent.
Under existing law the rates are l9
to As per cent.
Harrison told the Senate, in his
report, that even under the commit
tee plan the new levies would tend
to prevent undue accumulation of
wealth"
Harrison's committee has yet to be
defeated on the floor on any Of the
scores Of revisions it made in the
100000 tax bill after the House
sent it to the upper chamber. Har-
rlson has indicated he would prob
ably accept compromise on the
La Toilette amendment and let it 60
to conference with the House.
As the Senate moved to its third
day of debate on the tax bill today,
there were prospects that it may not
be passed until next week. Many
hours were consumed yesterday by
extraneous speeches involving per-
SonalitieS.
Capital Gains Vote Due.
Before the La Toilette proposal
was acted upon vote was due on
the pending amendment of Senator
Murphy, Democrat, Of Iowa, to increase
sharply the taxes on capital gains,
where such gains are Of a speculative
variety.
The Finance Committee plan for
taxing capital gains, which Demo-
cratic leaders believed would be re-
tanned, provides for measuring the
gain or loss from the sale of propert..s
by an individual (not corporations
according to the length of time the
person held the property. 1t stipulates
that the following percentages of the
recognized gain OF loss shall be taken
into account for tax purposes:
One hundred per cent if the asset
is held not more than year; 80 per
cent between l and years; 60
per cent between 2 and 5: 40 per cent
between and 10. and 80 per cent if
held more than 10 years.
Murphy contends that while this
scale is an improvement over existing
law, it would discourage realization
of gains because the longer the asset
was held the less tax would be paid.
The vote yesterday against La Fol-
lette's amendment to boost income
taxes was Al to SO.
BY this action the Senate retained
the less severe Finance Committee
schedule calling for a fiat per cent
normal rate and surtaXes ranging
from to SO per cent.
Roll Call on Proposal.
The roll call on the La Toilette pro-
posal follows:
Democrats for - Ashurst, Black,
Bone. Bulkley, Bulow. Caraway.
Clark, Connally. Costigan. Dill. Erick-
son. Hatch, Hayden. Long. McCarran,
McGill, Nicely, Overton, Pope, Reyn-
olds, Russell, Sheppard. Thomas
(Oklahoma), Thompson. Total, "a.
Republicans for - Borah, Capper,
Couzens, Frazier, Johnson, La Toilette,
Norbeck, Norris, Nye, Schall, VAN
denberg. Total, IL.
Farmer-Labor for-Shipstead. To-
tai, l.
Grand total for-36.
Democrats against-Adams, Bach
man, Bailey, Bankhead, Barkley,
Brown, Byrd, Bryant. Coolidge, Cope
land, Dietrich, Duffy, Fletcher.
George, Gore, Harrison, King, Lewis,
Lonergan. McAdoo, Mcclellan, OMa-
honey, Robinson (Arkansas). Smith.
Thomas (Utah), Tydings. Van Nuys,
Wagner. Walsh. Total, 20.
Republicans against-AuStin, Bar
bour. Carey. Dickinson, Fess, Gibson,
Goldsborough, Hale, Hastings. Kean.
Keyes. McNary, Metcalf. Patterson.
Reed, Steiwer, Townsend, White. To-
tai, Is.
Grand total against-47.