Evening star., 1934-01-27
COMMITTEE RESTS
TAX BILL STUDIES
House Group to Resume
Work Tuesday-Approved
Items Held Tentative.

By the Associated Press.
The House Ways and Means COM
mittee, which has been engaged for
several days in considering changes in
the new revenue bill. today was in re-
cess until Tuesday to give the legisla-
tive drafting service an opportunity %
whip the items approved into legal Ian
guage for further consideration.
Acting Chairman Hill stressed last
night that all action thus far was ten
tative and that all items approved we're
subject TO reconsideration.
The committee yesterday reversed a
previous decision on a provision for the
filing Of Joint income tax returns by
husband and wife. maxim this applic-
able only to the eight community prop
erty States.
The committee only "a hours before
mad adopted a Treasury recommended
ton providing for the Joint returns
The eight States having community
property laws are Texas, Louisiana.
New Mexico. Arizona. Nevada, Cali
fornia, Idaho and Washington.
Rcprisal Tax Provided.
Taxes that would bear heavier upon
the cltlzens OF countries that fasten
weightier levies upon Americans than
they do upon the citizens of other ma
tons. also were drafted yesterday by
the Ways and Means group.
Committee members said they were
aimed at France because of taxes that
country had imposed upon Americans
and American industries resident there.
Tne provision adopted would give the
President power to increase by as much
as 50 per cent taxes on foreigners
whose governments levy discriminatory
taxes against Americans.
An internal revenue excise levy CT
5 cents pound on coconut and sesame
oils. either imported or refined in this
country. also was approved.
American interests abroad will be
allowed, under a compromise provision
approved 4 credit of so per cent Of
the amount of taxes paid to foreign
governments on the income taxes they
pay this Government.
The committee also adopted a sec
tion eliminating a provision Of the
present law which permits reorganiza-
tion of corporations without recogniz-
ing q gain for tax purposes.
will Restrict Practice.
Under the present law, it was ex-
planned, corporations in many cases
are able to postpone indefinitely pay
ment OF taxes by successive reorgani-
cations. The new section will not en-
tirely abolish this practice. but it is
designed to restrict the abuse to
smaller field.
While there was no estimate gwen
BY the committee of the possible rev.
post on coconut and sesame oils was
variously estimated at from $40 900 900
to $50,000,000 Returns from the for
eign tax credit provision were esti-
mated at $4,000, 900.
Jhe rejected joint man and wife
incoL\. return provision had been
estimated by the Treasury as capable
of bringing in $40 1000, 900. but this
was sharply reduced by the compro-
mise and no definite figure was ven-
tured by the committee
The repriSal tax provision was Of
fered by Representative Vinson. Demo
crat, of Kentucky, and was adopted
unanimously. 1t provides that the
Secretary of the Treasury may de-
termine what nations are discrin1i-
mating against American individuals
and interests in assessment OF taxes.
The President would act on his rec
ommendation.
vinson said France had maintained
that it had a right to levy not only
on the profits of an American concern
operating a branch in that country. but
on its total profits in the United
States and elsewhere.