Evening star., 1934-01-26
House Committee Would
Even Score With Countries
PenaIizing Americans.
so PER CENT INCREASE
PROPOSED BY vINs0N
France One of Nations Aimed At.
Curb on Bank Practices Would
Stop Evasions.

The House Ways and Means Com
mittee today approved a proposition
giving President Roosevelt the power to
increase as much as so per cent taxes
on foreign individuals and corporations
in this country who come from coun-
tries which discriminate against Amer
lean concerns and individuals In tax
assessments.
The proposal was by Representative
Vinson, Democrat. Of Kentucky, and was
adopted unanimously.
1t is aimed at France, he said, and
other countries which levy taxes
against American individuals and cor
porations not only on the basis of in
come from interests in those countries,
but on the basis of income from inter-
ests in the United States.
This was one OF the most important
items voted into the projected $780,
100000 general revenue bill being
formulated by the committee.
Coconut Proposal Accepted.
Earlier today the committee had ac-
cepted a proposal to tax all cocoanut
and sesame oils at cents a pound.
This is estimated to bring in anywhere
between sl0,000.000 and s50OOo 900
annually and is designed to aid the
hog. dairy and cottonseed industries.
In offering his proposal Vinson ex-
planned that the Secretary of the
Treasury, with the advice and consent
of the President, would establish
whether foreign countries discrimi-
mated against Americans in tax assess
ments
No estimate as to how much revenue
TINS would produce would be available.
Vinson said. until the power is invoked
In addition. the committee and the
Treasury reached a compromise on the
proposal to abolish foreign tax credits
to American concerns operating in for
eign countries.
Reductions Proposed.
The committee proposed that the
taxes paid foreign countries be de-
Quoted from the gross income instead
OF from taxes paid to this country.
The compromise provides that Ameri.
can concerns and individuals operat.
ing in foreign countries be credited
against income taxes to this country
for half the amout paid the other ma
tions. This was estimated to yield
$4,000 900 annually.
Reconsideration Of the Treasury's
proposal to force man and wife to file
Joint income tax returns. estimated to
yield s40,000,000 annually in revenue
was proposed before the committee.
which yesterday tentatively adopted the
proposition A decision was expected
late today or tomorrow
Representative Shallenberger, Demo-
crat of Nebraska. who offered the
coconut and Sesame oil proposition
adopted by vote Of 16 to 5-said the
present rate of consumption was a bill
lion pounds year.
At present there is tariff of cents
pound on coconut oil from foreign
countries, but the Philippine Islands,
which ship much oil and copra into this
country. escape the duty, being under
United States rule.
Copra. which is the dried meat Of
the coconut, is imported duty free
at present. Sesame oil bears q tariff
OF cents pound.
Numerous Changes Yesterday.
The committee yesterday decided on
numerous income tax changes designed
to Shift the burder from smaller to
larger incomes. Many Of these changes
were aimed at the past practices Of
some big banks and bankers. as dis
closed by Senate investigators.
Liberal use of testimony taken from
j. P. Morgan. head Of the wealthiest
private banking house; Otto Kahn.
partner of Kuhn. Loeb g. Co.; Albert
H. Wiggin. one-time chairman of the
Chase National Bank; Charles E.
Mitchell, former chairman of the Ma
tional City Bank. and partners of Dill
Ion, Read g. Co., was studied by the
Committee
The affable Morgan told how he and
his wealthy partners, who paid $11,-
100000 Of income taxes in 1929, paid
none In 1880, 1881 and 1882 because
'our capital losses were such as to more
than wipe out all our income and leave
nothing taxable"
In the same years, too, Kahn
testified he paid no income taxes.
In the proposed tax revision the sit
uation would be changed Capital losses
would not be permitted to wipe out all
income. Especially in the case of part
nerships like Morgan's and Kahn's,
capital loss deductions would be lin
tied to capital gains
Mitchell told of selling stock to his
(Continued nm pape CoIIrn ~