Evening star., 1935-07-30
SENATORS To QUIZ
NORGE NTHAU ON
TAX BILL CHANGES
Cite Failure of S275, 900, 900
Measure to Follow Roose-
welt Views.
DRAFT REPORTED BY
HOUSE COMMITTEE
Provides Increased Surtaxes Be.
ginning at $5o,oOo-DoughtOn
Presses for Passage.
BY the Associated Press.

BY the Associated Press.
The Senate Finance Committee to-
Gay called Secretary Morgenthau TO
appear tomorrow to explain" the new
s275, ,000,0 900 tax bill and tell why it
does not contain President RooSevelt's
suggestions for new graduated cor
poration income levies and higher
SurtaXeS.
This action was taken short while
after the House Ways and Means
Committee had formally approved the
measure. Chairman Doughton said
he hoped to bring it up on the House
floor tomorrow for debate
The Senate committee started hear
ings today From L. H. Parker, chief
of staff Of the Joint Congressional
Committee on Taxation, it developed
that the House bill measure narrowed
the limits of the graduated corporation
levy suggested by the Executive and
contained an excess profits tax be-
cause it was thought this was a
"fairer test of ability to pay.
Start at S5O.OOO.
Parker said the surtaX increases had
been started at $50, 900 net income, in
stead Of the 81 900 900 example" sug-
geSted by Mr. Roosevelt, because only
around $5.OO0,000 or S6,000,000 in
revenue could be raised if the boosts
started at the higher figure He esti-
mated the yield would be $45, 600, 900
by lowering the brackets to $4,000.
Doughton said if he failed to get
the bill up for debate tomorrow it
would be taken up Thursday at the
latest"
L hope we can get it passed by
Saturday." Doughton added. IF we
don't, We certainly can get it through
by Monday"
Minority Report Forecast.
Indications were Republican mem
bers of the Ways and Means Commit
tee would file minority report critl-
cizing the bill because Of the conten-
ton it would do nothing worth while
toward balancing the budget.
Although less than a dozen COM
mitteemen were present when the vote
was taken, all but one of the absentees
left proxy The resulting vote was
II to 7, with the Democrats agreeing
solidly to approve the bill and the Re
publicanS to oppose it.
The only member not recorded was
Representative Lamneck, Democrat, OF
Ohio, who is ILL.,
There had been forecasts that an
attempt would be made in the COM
mittee to permit corporations to de-
duct from their taxable income gifts
made to Community Chests and char
liable organizations not operated fol
profit. This did not materialize.
TodayS committee session lasted
less than Is minutes. Committee
Democrats, however, already had
spent about two weeks working on
the bill in secret sessions from which
the Republicans we're excluded.
Terms Questioned.
As the bill was reported, Represent
ative Scrugham, Democrat. of Nevada
made public an amendment which
he will propose from the floor to de-
duct from corporation income money
derived from the mining of gold
Later, the House bills surtax pro-
visions reaching into income brackets
lower than recommended by Pres
ident Roosevelt were questioned by
Democratic Senators as the Senate
Finance Committee opened hearings
on the measure.
Parker told the committee the bill
increased surtaxes beginning at
$50,0O0.
Have you followed the Presidents
recommendations?" asked Senator
King, Democrat, of Utah.
Parker, who helped draft the meas
ure, said he followed the recommen-
dations of the House Ways and Means
Committee.
so you construed the Presidents
message to start the increases at
S50,000?" asked Chairman Harrison.
Cites Slight Income.
"It was the declaration of the COM
mittee," Parker said. adding:
"Of course, no substantial revenue
can be obtained by graduating sur
taxes from s1,000,000 up. That
would raise only about $5,OOo,00o or
$4,000. .00o."
The questioning developed that the
(See TAXES, Page ~