Evening star., 1934-04-14
y the Associated Press.


As finally passed yesterday by the
Senate, the s4so. 900. 900 tax bill
would raise, according to experts, the
following additional revenue over ex-
listing law:
Capital stock and excess profits
tax, 100000
Increases in estate taxes, s90,-
100000.
Changes in income-tax struc-
ture, SIS, 100000.
Administration Of depreciation
allowances, $85, 5,O00, 900.
Capital gains and losses, $780,.
100000.
Personal holding company tax,
$20.000,0O0.
Exchanges and reorganizations,
$10,000,000.
Consolidated returns abolished,
$20.00O,0OO.
Partnerships, IS 900 900.
Administrative changes in gaso-
line and oil taxes. $18,000,00O
Miscellaneous changes, $4,000
900.
Here are some of the more impor
tant provisions of the bill, as con-
trasted with the House measure ano
the present law:
Income Taxes.
Senate bill-Normal tax, per cent;
exemptions, $4,000 for married per.
sons. $1,000 single, $4OO each de-
pendent. Earned income credit OF
10 per cent on such income up to
$4,000.
House bill-Same as Senate except
earned income credit allowed only on
net incomes up. to $1,000.
Present law-Four per cent on first
$4,000 net income, plus per cent on
balance. Exemptions same as in Sen
ate and House bills. No credit for
earned income
Surtaxes.
Senate bill-Begins with S per cent
on net incomes between $4,000 and
$4,000, ranging upward In 20 backets
to So per cent on those over $1,000
600. Exemptions and credits for de-
pendents allowed the same as against
normal tax.
For one year only Q935) an ad-
ditional 10 per cent Is added to all
normal and surtax returns.
House bill-StartS at 4 per cent
between $4,000 and $4,000, rising up
ward in % brackets slightly different
from Senate to the same maximum OF
SO per cent on those over $1,000, 900.
Same exemptions as Senate.
No additional 10 per cent on income
and sur tax returns.
Present law-Begins with per
cent on net incomes over $4,000 and
ranges upward to SIS per cent. No ex-
emptionS.
BY eliminating the 8 per cent
normal rate now in effect, both Senate
and House bills subject dividep IS and
partial taxexempt interest to higher
taxation as suclI income now enjoys
an s per cent exemption and under
the bills IT would only be per cent.
inheritance Taxes.
Senate bill-Starts at per cent on
net estates under $4,000, rising to go
per cent on those over $4,000 ,000
Exempts first $4,000 OF any gross
estate. No credits unoer this schedule
for estate taxes paid to States.
House bill-No change from present
law.
L.
from per cent on the first $5O,U00 OF
net estate to 20 per cent on those over
S10,000,000 against which a credit of
80 per cent is allowed for such taxes
paid to States and which carries an
exemption of S100 900. Another sched-
ule, called the super estate tax" with
rates from / per cent on the first $l0,-
900 to as per cent on that part over
S10,000,0 900, on which no credit Is al
lowed and which carries an exemption
of $4,000.
Gift Taxes.
Senate bill-Begins at three-fourths
of l per cent on net gifts under
$4,000, graduating up to As per cent
on those over $1O,000000. Exemption
the same as proposed for estate tax.
House bill-No change from present
law.
Present law-Three-fourths of per
cent on net gifts under $4,000 to 331a
per cent on those over $4,000. 900.
Exemption, $50,000.
Capital Stock Tax.
Senate bill-One-tenth of / per cent
on the adjusted declared value of a
corporations capital stock. Also an
excess profits tax of per cent on
earnings in excess of 1912 per cent of
the declared" value of such stock.
House bill-No change from present
law.
Present law-Capital stock tax ex-
pires June 30, 1884. and excess profits
tax was repealed by presidential proc
lamation of prohibition repeal as OF
December 81, 1888.
Personal Holding Companies.