Evening star., 1934-04-07
TAX
WINS FAVOR
|0F SENATE LEADER
Harrison Approves Couzen's
10 Pct. Proposal to BRING
in $50, 900, 900.
LA TOILETTE PROGRAM
| WOULD ADD sos, 600, 900
Vote by Monday and Final Pas.
sage by Tuesday Seen
by Chairman.
By the Associated Press.

By the Associated Press.
The Senate brewed new headaches
for taxpayers today, particularly with
an emergency one-year 10 per cent
super income tax scheduled for adop-
ton.
The tax bill, which was a $25S, ,000.-
600 measure as 1t came from the
House. already is up to a proposed
$3.50 100000 in the Senate, with a
strong likelihood it will reach $3.50
100000 before it is passed.
An amendment for the super income
tax by Senator Couzens, Republican
OF Michigan, thar would add an esti-
mated $4,000, 900. and an amendment
by Senator LaFollette, Republican of
Wisconsin, that would be good for
perhaps s95 1000 600 more, were given
the approval today of Senator Har-
rison, Democrat of Mississippi, who
is in charge of legislation.
Vote May Come Monday.
Monday may see a vote. Both
Senate and House were in recess TODAY.
The bill as received from the House
was boosted to s3300O0,000 in the
Senate Finance Committee before
reaching the Senate floor.
Senator Couzens' proposal for the
10 per cent levy for one year would
be figured on the tax itself, a person
whose tax came to s100, for example.
adding 10 per cent of that and paying
$110.
The La Toilette amendment would
boost the super estate or inheritance
levies beyond the Finance Committee
rates and cut down existing exemp-
tions.
Both proposals are certain of Senate
approval.
The present normal income provi-
sions fix rate of 4 per cent on the
first $4,000 of net income and per
cent on the excess. The House and
Senate bills strike make it a fiat 4
per cent, but with surtaxes on
amounts above $4,000 ranging up to So
per cent.
BY beginning the surtaxes at the
lower income figure, instead of at
$4,000, as at present, and providing
higher rates and lowering the exemp-
tions for income from dividends and
partially tax-exempt interest, the
pending bill would make up for the
loss in revenue due to elimination of
the per cent normal rate now in
effect.
Persons with small incomes would
benefit. the personal exemptions now
allowed in payment of normal tax
would be extended to the surtax
Snhad111o rThic &c feI
In addition a credit of 10 per cent
on all earned income up to $4,000
would be allowed under the Senate
bill, as against $4,000 in the House
measure.
Problem for Taxpayer.
If the CouZens amendment and
other parts of the pending bill are
enacted here's what a salaried man
subject only to normal tax will have
to work out next year before he finds
what he owes Uncle Sam:
After noting gross income, take
out the usual exemptions and deduc-
tions of which there are a lot more
than you think.
To your net income thus deter
mined-up to $20,0OO-you are al
lowed to take off 10 per cent, If it's
earned and not income from invest
mentS.
Next figure 4 per cent of that for
the amount of tax, and then start
worrying over the surtaXes beginning
at $4,000.
Add 10 per cent to the figure you
finally obtain and if you have that
much money at hand you can dis
charge the obligation.
The La Toilette proposal would
apply only to the super estate tax
schedule as differentiated from the
normal estate tax. The Wisconsin
Senator has agreed to modify his
proposal to make the per cent super
tax start on estates of $4,000 in
stead of S25,000 as originally planned
and $50,000 in existing law. That
tax would graduate up to go per cent
on estates Of over $l0,000,000, as
against As per cent in existing law.
Final Passage by Tuesday.
The tax bill was laid aside yes
terday to permit passage of the
$l8,000,000 legislative appropriation
bill before the week end adjournment,
when Harrison said in an interview
he would agree to the proposed higher
levies.
The MissiSsippian said the two
changes would go a long way toward
providing the Government with much
needed revenue for its recovery pro-
gram.
More than a dozen amendments to
the tax bill are still unacted upon,
but compromises were in sight on a
few Of the more important ones and
some others were expected to be
withdrawn.
Final passage by Tuesday was pre-
dicted by Harrison.
Aided by conservative Republicans,
administration leaders beat back an
other onslaught on the measure and
retained 1t in the committee plan for
figuring income from capital gains and
losses by individuals. This plan. an
entirely new method, is aimed at high
er taxation for speculative gains than
for profits from longtime property in
vestments. 1t is estimated to yield an
1fIor nm nm