Evening star. [volume] (Washington, D.C.) 1854-1972, 1935-08-23
HOUSE APPROVAL
| OF TAX BILL NEAR
Report on Changes, How.
ever, Delayed in Senate
by Harrison
BY JOHN C. HENRY.

Clearing the way for quick DISPOSE
ton of the emergency administra-
ton tax bill to aid in redistribution
of wealth, Representative Doughton,
Democrat, of North Carolina, head Of
House conferees on the measure, late
last night filed the conference report
and statement OF the House managers.
His action was taken just before the
House adjourned shortly after 10 pm.
and was believed to indicate that ac-
ceptance of the report win be asked in
the House this afternoon. with no OPP
position expected and very little, II
any, discussion. Quick approval OF
the report Is anticipated.
On the Senate side, however, Sem
ator Harrison. Democrat. of Missis-
sippi, and head Of the Senate con-
ferees, is holding the report and Sen
ate statement in allegiance until final
action is taken in the House. Posi-
bilities Of delay are feared In the
upper body, where some OF the silver"
Senators have said they might held up
approval of the report until they are
given some satisfaction in return for
elimination of the McCarran amend
ment from the tax measure.
Filibuster Threat Wanes.
With both houses and both parties
pushing for adjournment, however,
even a potential filibuster probably
would be ridden down without undue
loss of time.
AS filed last night in the House
neither the conference report proper
nor the statement OF the House man
ayers discusses the revenue legislation
in a general way, each being confined
to technical explanation Of changes
made in the measure during passage
through the Senate and the agree
ments reached by the conferees. Addi-
tional revenue from the measure Ia
now estimated at about $3.50 .000, geo.
In connection with the agreement
to eliminate inheritance taxes and re-
tain the Senate scale Of increased
estate taxes the House managers site
an example to show how the taxable
net amount might be computed. In
the example they apply the new spe-
cific exemption Of $40 900 rather than
$50 900 as in the present law and also
apply the privilege of validating the
estate one year from death, rather
than at time of death.
$1S4,550 Estate Is Example.
Their example follows:
A decedent dies owning real estate
valued at 100000. corporate stock OF
$50 1000, bonds of $4,000, foreign gov
eminent bonds maturing nine month,
after date of death worth $4,000. but
of value of $3.50, and cash amount.
ing to $1,000. These values are oil
date of death. The gross estate at
that time, therefore, amounts to
$l94,550.
The decedent had debts Of $4,000
and the administration expenses were
$4,000. The value of the net estate
after subtracting specific exemption OF
$4,000 was s114,550. Six months
after the decedents death the exec
utor distributed the bonds TO a legatet
under the will. at which time they
were worth $4,000, and he sold all
the corporate stock owned by the de-
cedent for q fair market value OF
$4,000. The foreign bonds were paid
in full at maturity. During the flrsi
year after the decedent's death the
value Of his real estate appreciated
IS 900. The executor elects to take
advantage Of the new provision allow
ing valuation one year after death.
Net Estate S1os.ooe.
The assets follow: Real estate Zone
year after DEATH, sos 900; corporate
stock (date of sale), $4,000; bonds
(date Of distribution), $4,000; foreign
bonds (date of maturity, $4,000;
cash, 5000. Gross estate, slSe, 900
Deductions debts, administration and
exemption), So, 1000. Net estate, s1OS.-
600.
The new estate tax rates. starting
at per cent on the first net $4,000
and reaching II per cent on the last
$4,000, would be applied.
The report was signed by Senators
Harrison, King, George and La Fol-
lette and Representatives Doughton
Hill and Cullen. Republican con-
ferees, Senator Metcalf Of Rhode Is
land and Representatives Treadvay
Of Massachusetts, and Bacharach OF
New Jersey, refused to sign.