Evening star., 1935-07-31
D0UGHTON FILES
TAX BILL REPORT
TO SPEED PASSAGE
Majority Ignores Attack by
G. o. P. and Simply Ex-
plains Draft.
WITNESSES PROTEST
s27O,oOO,OO0 MEASURE
Senate Committee Hears 0bjec.
tions-Schedule May Be Called
Up in House Tomorrow.
See Page A for majority
and minority reports on the tar
bill.
BY JOHN C. HENRY,

D1 JOkhN -. hENNAB
A majority report of the House
Ways and Means Committee, officially
estimating the new tax bill would
raise $270,000,000 year, was sub
mitted to the House today.
Meanwhile, with only few excep-
tions, a solid front of opposition to
the administration tax program
arose to face the Senate Finance
Committee, holding hearings on the
measure.
The majority report was presented
q few hours after Republican COM
mitteemen had issued a minority re-
port criticizing the bill as a political
gesture" and contending it would not
raise enough money to pay running
expenses of the Government for two
weeks
Chairman Doughton, Democrat, OF
North Carolina, said he planned to
call the bill up on the floor tomorrow,
and would try to get it passed by the
House by Saturday.
Majority Ignores Attack.
AL COIlIl Will bllC ollaA
nunciation of the measure as expressed
in the minority report, the major
ity filed merely an explanatory re-
port on the bill, avoiding almost en-
tirely any attempt to justify enact
ment of the measure or to answer Re-
publican attacks on the legislation.
Quoting first the Presidents mes
sage. the majority report then outlines
the contents of the four titles of the
bill and makes the estimate that s270.-
100000 will be raised by is provisions
in full year of operation. These in
creases they list as follows:
Source of revenue and estimated
additional revenue:
Increased surtaxes --- $45, ,000, 900
Graduated corporation tax 15,000,000
Excess-prof1ts tax ------- 100, 900 900
Inheritance tax ---. $4,000, 900
Gift tax -----------. $4,000, 900
Total -$270, ,000, 900
In regard to the matter Of increas-
ing surtax rates from $4,000 up in
stead Of from 81 ,000. 900, as suggested
by the President, the committee ma
jority says:
"An income of $4,000 per annum,
II from investments at per cent,
represents a capital Of $1,000,0 900. Your
committee is of the opinion that the
surtax rates proposed, starting at
$4,000 and graduated to S., 100000
carry out the general policy expressed
in the Presidents message"
Corporation Tax r yplained.
The committee also mentioned its
decision to impose a small graduation
in taxes on corporation incomes in
the following statement:
THE President recommended the
substitution of a graduated income
tax on corporations In lieu of the
present income tax imposed at a uni
form rate. This is new principle which
has never been used in this country
and therefore your committee, in Sec
ton 102 (a) Of the bill, is recon-
mending only a very moderate grad
uation."
The Presidents suggestion was for
graduation from 1024 per cent up to
16$4 per cent, instead of the present
uniform 1894 per cent The bill as re-
ported, however, has a graduation of
only per cent between the ranges of
1914 and 14A with $4,000 of net
income taken as the basis for dif-
ference.
In justification of its insertion of a
new excess profits tax in the measure,
the majority says:
Section los of title l of the bill
proposed q revision of our existing
excess profits tax by substituting
graduated rates for a uniform per
cent. This tax is not specifically men
toned by the President, but your COM
mittee feels that it is in line with his
general policy to tax those with ability
to pay whether they be individuals or
corporations
Minority Scores Bill.
With regard to titles 2 and 2 of
the bill, which contain inheritance
taxes and gift taxes on donees, the
majority report merely describes ap-
plication of the proposed taxes. to-
gether with tables showing estimated
revenue.
In contrast to this factual report
from the majority, the minority Of
the House committee hit out vigorous
ly at what they termed a political
(See TAXES, Page 81