Evening star., 1934-04-13
La Toilette Offers Amend.
sment to Permit Inspection
of Returns.
$3.50, ,000,0 900 MEASURE
SOON IN CONFERENCE
Clark Proposal to Assess Exempt
Securities Uncertain of
Reaching a Vote.
By the Associated Press.

4'O" bAioS tAAC OCsldLc IldS DOOSUGu
the tax bill to $480,000, 900, Repub-
hcan independents in that chamber
sought today to hand the Government
club which they said would frighten
tax dodgers into shelling out.
Publicity was the weapon they
chose. Senator La Toilette, Repub-
ncan, OF Wisconsin, who won approval
OF a stiff increase in inheritance and
gift levies, yesterday brought before
the Senate an amendment to make
all tax returns subject to public in
spection. On the basis of past per-
formances. this amendment looked
like an easy winner
This was the last major controversy
to be settled before the tax measure
which once was the $3.50, ,0OO, 900
revenue bill''-is approved. After the
senate gets through with it, it goes to
conference with the House to ad-
Just scores Of Senate additions and
Subtractions.
Senator Clark, Democrat, of Mis-
souri, had planned tentatively an
amendment to tax the income from
millions Of dollars of securities now
exempt, but it was uncertain whether
he would put it to, a vote.
A step toward discouraging huge
salaries for officers of corporations
and banks and thus raising more tax
revenue from these sources was taken
yesterday when an amendment by
Senator McKellar, Democrat, of Ten
nessee was approved. 1t would COM
pei corporations to report annually to
the Treasury all officers being paid
salaries or bonuses, or both. in ex-
cess Of $4,000. The Treasury would
be required to send the list to Con-
gress, where 1t would be made public.
Record for Public View.
La Follette's publicity amendment
would not seek to have a series of
news releases" on the returns, but
would make them public records to
which any one might have access.
The young Senator believes this
would have a wholesome effect and
serve to minimize schemes to avoid
taxation. He has pointed to dis-
closures by the Senate Banking Com
mittee that some Of the country's
wealthiest men paid no income taxes
in the years after 1929.
The present law on the subject pro-
vides for public inspection, but under
regulations to be prescribed by the
President. The White House has
never issued these regulations.
In another Of its series of actions
yesterday the Senate approved an
amendment by Senator Borah, Re-
publican, OF Idaho, taking away the
existing privilege Of corporations to
file consolidated returns for the par
ent and subsidiary concerns. There
was some question among experts as
to how much the new provision would
raise.
1T all depends on how the profits
are allocated," said L. H. Parker, ex-
pert for the Joint Congressional Tax
Committee, in reply to questions by
newsmen.
As the bill stood shortly before final
passage, experts figured it would raise
the following additional annual reve-
nue.:
Capital stock and excess profits
taxes, $95,000,000.
Increase in estate tax rates, $s2,.
100000.
Changes in income tax structure,
$85 ,000, 900.
Administrative changes on depre-
citation, $85,000 900.
Capital gains and losses, $50, ,0oo, 900.
Consolidated returns abolished,
$20, ZOO, 900.
.,p Personal GnS nal holding company tax.
Exchanges and reorganizations,
$40 10000
Partnerships, $5,00O,o0o.
Administrative changes on gas and
oil, $15,000,000.
Miscellaneous, s20,000,O00.
Total. $4s0, 1000, 900.
Super Estate Tax Boost.
The new Inheritance taxes boost
the super estate levies and make the
range to so per cent as against 1
to IS In existing law and / to so in
the Finance Committee schedule for
which they were substituted. Exemp-
tions on gross estates would be cut
from $4,000 to $4,000.
The new rates begin on net estates
under $4,000, compared with $4,000
in existing law, and graduate UP to
60 per cent on those over $4,000, 900.
Taxes paid under this schedule are
not subject to the 80 per cent credit
for similar taxes paid to States. There
are two schedules Of estate taxes, the
present scales running from ] to 20
per cent against which the 80 per
cent credit is allowed and another
from ! to As per cent on which no
credit is permitted. The La Toilette
schedule affects only the to As per
cent scale.
La Toilette contended the hieher
levies were needed to meet "expendi-
lures made necessary In order to re-
neve distress and provide employ
ment."
His gift-tax schedule begins at
three-quarters Of / per cent on net
gifts under $4,000 and graduates I'D
to As per cent on those over $l0,-
100000. The exemption Is the same
as in the estate tax. The present
law has tax range Of from three
quarters Of per cent to 33h per
cent, with the first bracket at $4,000,
Only 10 Republicans and 4 Demo-
Gratis opposed the higher inheritance
taxes. They were Barbour, Colds
borough, Hale, Hastings, Hatfield,
Hebert, Kean. Keyes, Metcalf and
Townsend, Republicans; and Bailey,
Byrd, Copeland and Thomas, Utah.
Democrats.