Evening star. [volume] (Washington, D.C.) 1854-1972, 1934-04-11

The Senate today tentatively
adopted compromise to return to
the Philippine government revenue
from the proposed cents a pound
domestic processing tax on import
ed coconut oil.
By the Associated Press.
A presidential veto may fall on the
$3.50 100000 tax bill, leaders limited
today. unless the Senate rejects
proposed levy on Philippine coconut
OIL
President Roosevelt. in letter to
Chairman Harrison Of the Finance
Committee, urged rejection of the tax
because it violates the principles Of
the Philippine independence act.
Harrison offered an amendment to
exempt from the proposed 3-cent-a-
pound levy the status quo importa-
tons from the islands. The amend
ment was before the Senate today.
Administration leaders expected the
Senate to stick b." its refusal yester-
day to vote an emergency increase Of
10 per cent in income taxes
Couzens Tries to Save Bill.
Senator Couzens, Republican, Of
Michigan, author of the 10 per cent
clause, broke a 45-45 tie on it by
switching his vote from AYE" to no"
in order that he might move recon-
sideration. The vote against the in
crease thus was As to a.
Thirty Democrats joined thirteen
Republicans and the Farmer-Laborite.
Shipstead, for the increase. Twenty
five Democrats and twenty-one Re-
publicans voted no"
Couzens claimed overnight two new
votes for his amendment, but Demo-
cratic leaders were confident Of off,
setting any advantage he may have
gained.
Higher Surtaxes Beaten.
The Senate also rejected yesterday a
proposal to boost surfaces beyond the
Finance Committee rates, which al
ready are higher than existing levies.
The Couzens amendment would have
raised an estimated SIS, 900 900. The
higher surtaxes. suggested by Senator
King, Democrat, of Utah, would have
yielded another $4,000 900.
There still was conceded to be a
chance for adopting higher inherit
ance levies which would bring in en-
additional S92 100000. Senator La
Toilette, Republican, of Wisconsin, will
propose such an amendment.
Chairman Harrison of the Finance
Committee swung the decision against
the Couzens amendment. He pre-
viously had announced he would ac-
cept the proposal and let II go to con-
ference with the House, but explained
considerable opposition had arisen,
and since he was speaking only for
himself and the committee had not
recommended the proposition, he
elected to stand by the committee.
House administration leaders also had
expressed opposition to the proposal.
Couzens argued it was "cowardly" to
refuse to adopt higher income taxes to
help pay the expenses of the huge re-
covery program. He contended the 10
per cent, which would have meant
a tax return of S110 on a 500 tax
due, would have hit the higher in
comes and meant no increase over
existing taxes until net incomes of
$4,000 were reached.
Burden Reasonable"
La Toilette supported the amend
ment, saying the actual additional
burden is very reasonable require
ment in times like these"
Snator Borah, Republican, o. Idaho,
thought the added 10 per cent would
bear too heavily on the small tax
payer and would discourage investment
in small businesses, but voted for it
on the ground of emergency needs.
Borah assailed holding companies
which, he said, avoid taxes by enjoy
ing the privilege of deducting from
gross income dividends received on
stock in other corporations He has
an Amendment pending to take away
this right, as well as one to increase
the penalty tax for filing consolidated
returns from to 4 per cent.