The Waterbury Democrat. [volume] (Waterbury, Conn.) 1917-1946, 1935-08-16

measures IN conference are luS
omnibus banking bill, utility hold
ing company legislation, IVA
amendments, gold clause amend
ments and the federal alcohol con-
troll bill.
Before passing the bill the SEN
ate added two amendments which
probably viii be killed in confer
ence.
One was by Senator William E.
Borah, republican, Idaho, adopted
by the one-vote margin of 40 to
80, to ban future issuance of tax
exempt government securities.
The other was by Senator Pat
McCarran, democrat, Nevada, ac-
cepted without a contest, repeating
licensing, tax and naturalization
features of the silver purchase act
of last year.
Senator Elmer Thomas, demo-
crat, Oklahoma, leader of the in
surgent silver bloc, promised stiff
fight If the conferees eliminated the
silver amendment.
Republicans Helped
Seven republicans voted with 43
democrats, one progressive and one
farmer-laborite for passage of the
tax bill.
Ten democrats and 10 republic
cans voted against it.
Chairman Pat Harrison of the
senate finance committee said that
conferences between the house and
senate might start this afternoon.
1t was believed that, with the
McCarran and Borah amendments
eliminated, the final version would
be much as the senate wrote 1t.
There was no contest in the senate
over the finance committees re-
lection of the house inheritance
tax provisions and it seemed likely
that the inheritance tax features
would not be in the final bill.
The higher estate taxes adopted
by the senate probably will be
substituted for the inheritance
levies.
A study of the house bill has
convinced fiscal experts that ad-
taxes would be impossible and
would only add confusion to an al
ready complex tax situation.
Io Toilette Defeated
Senator Robert NJ. LaFollette,
progressive, Wisconsin, was defeat
ed all along in his effort to broad
en- the tax bill and make 1t a real
revenue producer by going after
the middle and lower income
brackets.
After LaFollette's amendments
were voted down the senate, with
Vice. President John N. Garner
gavelling the way, waded through
the 125-page measure with breath
taking speed. 1t required less than
five minutes for all the amend
ments to be accepted. "'''~"
Several senator's offered amend
ments, but most were shouted
down. None had a chance of sue
cess unless the administration gave
it's approval.
Comparison of Bills
The bill passed by the senate
differs in several particulars from
the measure passed by the house
on August s. A comparison Of the
two bills:
NORMAL TAX
I1Ouo0 anu 9
from present law.
SURTAX
House-Increased taxes on per-
sonal incomes of $4,000 and more.
the surtax rates ranging from 81
to rs per cent, the latter applying
to surtax net incomes above $5,-
900, 900.
Senate - Retained present sur
tax schedules UP to $1,000,000, but
graduated surtaxes thereafter to
reach 75 per cent above 100000
900. The present rate is SO per cent
on all surtax incomes of $1,000, 900
and more.
INHERITANCE TAX
House-Imposed new tax on net
inheritances, ranging from per
event on $4,000 to rs per cent
above $4,000. A $4,000 exemption
was allowed for blood relatives and
$4,000 for distant delatives and
friends. Administrative difficulties
make it unlikely that these provi-
sions viii be enacted into law.
Senate-Eliminated house inher-
itance taxes but added an amend
ment, in case some inheritance tax
feature prevailed in the final YER
sion, permitting tax-exempt insur-
ance policies to the amount of the
death payments.
ESTATE TAXES
House-Retained present sched-
| ules.
| Senate-Increased rates as an
offset to the rejected inheritance
taxes. Rates begin at per cent on
estates valued at more than s40,-
600 and range up to 20 per cent on
the part of estates above $50, 0OO,-
600.
CAPITAL STOCK TAX
House-Retained present sched-
ules.
senate-Increased present rates
so per cent.
EXCESS PROFITS TAX
House-Tax OF 8 per cent on cor
porate profits between and ~
per cent and graduated to 20 per
cent on profits In excess Of 25 per
cent.
Sonate--6 per cent on 10 to Is
per cent profit; ~ per cent on