Evening star. [volume] (Washington, D.C.) 1854-1972, 1935-07-28
House Leaders Broaden
Measure to Include Re-
turns Above $4,000 to
Boost Revenue "a Millions
OVER 1000 PAYERS
WOULD BE AFFECTED
Agreement Reached in Move to
Speed Plan to Vote This Week.
Full Ways and Means Commit
tee to Get Revised Proposal
Tomorrow.
By the Associated Press.

by lHc ASSOCldbCu EIcoSs
President Roosevelt's new tax bill
was expanded yesterday TO boost the
rates on incomes as low as $4,000.
House Ways and Means Committee
Democrats, who are drafting the bill
which holds the present key to ad-
journment of CongreSs-ended their
preliminary work by broadening 1t to
dip into the incomes of more than
1000 individual taxpayers. Previously.
it had been indicated, the rates would
remain unchanged below $150,000.
The committee has yet to consider
many comparatively minor points
Nevertheless. its members apparently
recognized the pressure for adjourn
ment. They arranged for the bill to
be introduced formally and taken up
by the full committee tomorrow.
Their hope is to get a new measure
through the House by next Saturday
night.
Senate Democratic leaders, mean
while, were at work lining up their
big majority against all amendments
when the tax bill reaches the Senate
floor. They figured such an agree
ment would get the bill through the
Senate within a week. If this could
be done it would leave ample time
for Congress to wind up its work
before the end of August.
Before Committee Tomorrow.
Ways and Means Committee Demo-
re Orfninollrr hnI ipfa Cd e.
definite agreements on all things in
the bill before laying it before the
full committee. Acting Chairman
Samuel B. Hill. Democrat, of Wash
ington, insisted yesterday, however.
that even though final understand
ings had not been reached on the
whole bill, it still would be put before
the full committee tomorrow morn
ing.
Meanwhile, Senator McNary of
Oregon, the minority leader, voiced a
criticism of the bill common among
Republican adherents. He said:
The tax bill is not intended as a
revenue bill. When you write a rev.
enue bill. you've got to go down and
tax the middle classes"
The decision of committe Democrats
to expand the scope of their bill OBJ
viously was designed to answer such
arguments at least in part.
Until yesterday the tentative Demo-
cratic understanding had been that
the bill would increase the taxes on
individual incomes Of more than $780,
600 a year. The stepped-up SurtaxeS
in that group were estimated to pro-
duce $40, 900 year. inheritance
and gift taxes $l10.000,000 to $118,-
100000; graduated corporation in
come taxes $4,000, 5000 and excess
profits $100,000,000.
That made the total $245, 400, 900
to $3.50, 100000. But yesterdays &C
ton. in addition to hitting around
1000 taxpayers instead of less than
1000 under the first plan, was esti-
mated to bring in an additional s24,-
100000 or $25,O0O,0OO a year.
Total Is $275,0OO,OO
Thus, Chairman Hill said, the total
bill would produce $275 100000 a
year m times like the present and
upward of $4OO, 900, 900 when business
is normal.
Furthermore, he said, there was
chance that the levies already tenta-
tivly accepted on inheritances, which
range from 4 to rs per cent, might
also be boosted.
Hill and other committee members
declined to make public, for the time
being, the exact, proposed new in
dividual income tax schedules. Hill
said. however, that the new schedule
roughly would increase the surtaxes
on a $50,O00-$ sec, 600 income about
per cent above the present 80 per
cent.
The rates, he added, would blend
at a higher point in the scale into the
schedule already tentatively adopted
so the maximum would still be rs
per cent, against the present SO, on +
(See TAXES, Page So