Evening star., 1935-08-20
Taxes
Continued From First Page.)

passed the House. In its place they
accepted the Senate schedule of in
creased rates of estate taxes. starting
with 2 per cent on net estates up to
$4,000 and increasing to 10 per cent
on all over S5O,O0O,000 The present
rates in those brackets we're l and so
per cent. respectively.
Gift Taxes on Donors.
At the same time, it was agreed
that the Senate schedule of increased
gift taxes on donors should be re-
tanned instead of the House propoSi-
ton to levy gift taxes on doneeS. The
accepted schedule would levy a tax
equal to three-quarters of the rates
in the comparable estate tax bracket.
The increased estate and gift taxes
are calculated to bring in an extra
S102 100000. The House provisions
for inheritance and gift taxes were
estimated as worth $4,000 900.
The House conferees accepted the
Senate provision for increasing the
surtax rates on the net incomes of
personal holding companies. this
schedule being aimed at applying the
same taxation to such income as is
applied to individual or corporation
income. The schedule ranges from 20
per cent on such net income up to
$4,000 to 60 per cent on the income
in excess of s1,000,000 No estimate
Of revenue is given for this provision
since its effect is principally to dis
courage existence of such holding
companies as means Of evading the
regular surtaXes.
Insurance Priviso Dropped.
The Senate agreed to elimination
Of two amendments put into the bill
during floor consideration of it there;
the first being to repeal the tax on
importation of whale oils and the
second to grant exemption from
death taxes to the proceeds Of life
insurance made out to the estate.
This latter provision. submitted by
Senator Lonergan, Democrat of Con-
necticut, was believed unnecessary
without a schedule of inheritance
tax. The conference report contained
a recommendation that such a plan
be studied, however.
; In turn, the House conferees re-
ceded to accept two Senate amend
ments relating to imposition of COM
pensatory taxes on certain oils and
decreasing the tax rate on production
and refining of crude petroleum.
Following announcement Of the
conference agreement by Chairman
Harrison of the Senate conferees he
said the report would not be taken up
in the Senate until disposed of in the
House. Representative Doughton,
Democrat, of North Carolina, head of
the House conferees. did not say when
he will call the report up in the
House, but it is expected to lie over
day at least.
In view of the absence of any major
departures from the form of the
House bill, no extended controversy is
expected on the report in that body.
but the path may not be so smooth
in the Senate.
Fight May Bring Delay.
In the upper body proponents of
the Borah and McCarran amendments
both indicated when their proposals
were adopted that they were not max
ing a mere gesture and that their
abandonment in conference might
mean delay in forcing adoption of the
conference report on the floor. Sem
ator Thomas. Democrat. of Oklahoma
also promised to do some talking on
the silver amendment in case it dis
appeared in conference.
Aside from this probability of delay.
however, there is little chance that
either or both Of these groups could
force their proposals back into the bill.
The Borah amendment was accepted
by the narrow margin of 40 to 80 on
its original test and administration