Evening star., 1934-04-12
S92,ODO,0()O ADDED
INHERITANCE LEVY
VOTED BY SENATE
La Toilette Amendment
Lifts Maximum Due U. S.
to 60 Per Cent.
CHANCES OF 10 PCT.
SUPERTAX DUBIOUS
House Cool to Increase Adopted
by Upper Branch-Gift Rates
Also Boosted.
Nv the Associated Press.


increase in inheritance taxes, designed
to raise s92,OOO,00o a year in addi-
tional revenue.
It adopted, by vote OF IS to IA, an
amendment to the revenue bill by
Senator La Toilette, Republican, OF
Wisconsin making the range Of super
inheritance or estate levies to 60
per cent as against l to As in exist
ing law and / to so in the Finance
Committee schedule. Exemptions on
gross estates were reduced from $780,
600 to $40 900.
Taxes paid under the super-estate
schedule are not subject to the 30
per cent credit for similar taxes paid
to States.
There are two schedules of estate
rates under present law, the first
running from l to 20 per cent against
which the 80 per cent credit is al
lowed. The La Toilette rates do not
affect the first schedule.
Paid After Death.
The newly adopted rates begin on
net estates under $4,000, compared
with $4,000 In existing law, and
graduate upward to 60 per cent on
those over $4,000 900, with an exemp-
ton of $4,000 on gross estates
against $4,000 in existing law. The
estate tax is paid on the value of
estates transferred after death.
La Toilette explained the composite
rates on estates under his amendment
would amount only to about A per
cent over $4,000, ,000. He said the so
per cent probably would not apply
until $100,000,0o0 was reached.
Under his rates, La Toilette said, a
$50,000 net estate would pay 81 800
tax. compared with $500 in existing
law and $4,000 in Great Britain.
A $500000 estate would pay SEC. 200.
compared with s42, 500 in the present
law and $105 900 in Great Britain, and
a $1,000,00 estate s170,800 as against
$ll7,500 and $270,000.
Cites Need of Raise. -
The Wisconsin Senator said the
higher rates were necessary to meet
expenditures made necessary in order
to relieve distress and provide employ
ment."
He added the "econmic crisis" was
far from over and it would be neces-
sary to continue huge recovery ex-
penditures for years to come.
Meanwhile, House leaders look dubi-
ously at prospects for acceptance Of
the 10 per cent supertax on incomes
adopted yesterday by the Senate.
Speaker Rainey said he thought
te t%a hit af ny,nncifinv, fo
1t in the House"
They'll have to show need for this
tax to get the House to accept it,"
said Representative Byrns, Demo-
cratic leader.
II don't know about it," said Chair
man Doughton, Democrat, of North
Carolina, of the Ways and Means
Committee. Well have to study it."
Gift Taxes Raised.
To make gift taxes conform to the
companion estate levies, the Senate
approved without a roll call another
La Toilette amendment increasing
these rates, which amount to three
quarters of estate taxes.
The vote on the higher inheritance
rate was reached after two steps had
been taken yesterday which made the
ultimate fate of the bill uncertain and
threaten it with a presidential veto.
In the face of House opposition, the
Senate threw overheard q previous
vote against the Couzens amendment
to increase all individual tax returns
next year, and then voted. despite
President Roosevelt's objections, for a
3-cents-a-pound domestic processing
tax on imported vegetable and marine
animal oils.
Both actions served to accentuate
the trend in Congress to make deci-
sions independent of the President
Mr.. Roosevelt had not asked for an
emergency income tax increase. He
said the vegetable oil tax was viola
ton of the Philippine independence
law.
Senators wondered also how Mr.
Roosevelt would accept modification
pushed through by Senator Norris
Republican, of Nebraska, to turn
over the revenue from taxes collected
on the Philippines importation to the
Philippine treasury.
Affects Higher Incomes.
As to the income tax boost, Couzens
emphasized the bill as 1t now stands
provided much relief for small in
come taxpayers and the additional II
per cent he proposes would not re-
quire q taxpayer to pay more than
under existing law until net incomes
of $4,000 were reached.
A married man with no dependents
and with a net income of $4,000 would
nay $40 income tax under the present
law. Under the Senate and House
schedules, which allow 10 per cent
credit for earned income. he would
pay only So, and with Couzens
amendment only $3.50.
The vote for the Couzens' amend
ment was 43 to SO. Tuesday the
Senate had voted, As to A, against the
proposal. The motion by Senator
Couzens, Republican, of Michigan to
reconsider this vote carried. 40 to IS
Couzens had switched and voted
against his own proposal in order te
move reconsideration.
Others who changed their vote yes
terday were Clark, Democrat, ol
Missouri, and McCarran, Democrat
Of Nevada. Ninety votes were record.
ed Tuesday, against only 70 yesterday
After the Senate adjourned yester.
day Senator Harrison refused to pre-.
dict what the Presidents attitude
might be on the vegetable oil tax al
amended by Norris. He did say, how
ever, that he would confer with tn,
President as soon as he returned Il
Washington.
ua "a fha Norris amendment con