Evening star., 1934-04-05
La Toilette Amendment Pre-.
sents Biggest Obstacle
to Passage.
COMPROMISE SOUGHT
ON NEW ESTATE PLAN
Senate Approves Flat 4 Per Cent
Normal and Modified
Surtax.
BULLETIN.

The Senate today rejected pro-
posal to increase from 4 to 6 per
cent the existing normal income
tax and to levy surtaxes ranging
from to II per cent, as against an
existing range of to 55 per cent.
The vote was Al to 36.
BY the Associated Press.
The bill that hits directly at Mr.
J. Public's purse-the $3.50, 900. 900 tax
today, but with much doubt about
what will be the final fate Of the
moot income tax provisions.
The Senate yesterday approved its
Finance Committees proposal for a
fiat per cent normal income tax and
a modified surtax schedule aimed at
incomes between $4,000 and more
than 81 ,000, 900, and ranging from S
to SO per cent. Today it faces a de-
cision on a proposal by Senator La
Toilette Republican, of Wisconsin. to
raise the normal income tax to 6 per
cent and to make the surtaxes range
from to II per cent, as against l
to SIS per cent in existing law.
The Senate put damper on
speechmaking today as far as the La
Toilette amendment is concerned.
Harrison Sees Compromise.
Chairman Harrison, Democrat. Of
Mississippi OF the Finance Committee
looked for compromises on new estate
taxes and the proposed cents a
pound tax on coconut and other i'm
ported vegetable and fish oils. He
said he would propose an amendment
compelling corporations to report in
their returns a list of all those re-
ceiving from them salaries and
bonuses in excess of $4,000
The La Toilette proposal presented
the big hump in Senate consideration
and once that is disposed of 1t ap-
peared probable the entire bill would
be given a final vote by tomorrow
if not today.
The Senate approved one amend
ment after another yesterday swiftly
Without even breaking stride for a
record 'ote, 1t approved tax of one
tenth Of per cent on the capital
stock of corporations. allowing each
concern to fix its own valuation, but
placing an additional per cent levy
as a penalty for undervaluation Earn
ings above 121a per cent also would
carry per cent levy. These taxes
are existing law, but will expire
July /.
Levy on Excess Profits.
The same kind of approval was
given an excess profits tax This
would place levy of Is per cent on
the first 100000 of surpluses ad-
judged Improperly accumulated.
The tax would be raised to IS per
cent for above 100000 on the ad-
justed net income of corporations en-
gaging in this practice.
The capital stock and excess profits
taxes are expected to raise sos. .000, 900.
On the estate tax question, still to
be settled. Harrison said he would
accept modified La Toilette amend
ment. The Wisconsin Senator pro-
poses a l per cent tax on net estates
below $35.000, ranging up to so per
cent on those above s10.o00,000.
The modification proposed would
make the tax per cent up to $1,000.
Existing law makes this figure $50, 900.
Action on La Follette's amendment
yesterday was blocked by speech on
redistribution of wealth by Senator
Long, Democrat, of Louisiana.
Favors Redistribution.
La Toilette also made an appeal
for redistribution of wealth, saying
its concentration was ''inimical to the
perpetuity of democratic institutions.
He read a letter from Secretary
of the Treasury Morgenthau esti-
mating the revenue from his sched-
ule at $185, 900 900 above present law,
and said the committee schedule
would raise only another $4,000, 900
Five major changes in the bill were
Continued on Page 2. Column A.