Evening star., 1935-06-11
COMMITTEE LIKES
NEW TAXES IDEA
House Group Poll Indicates
Inheritance and Gift
! Levies PassabIe.

eCopyrizht. 1885. by the Associated Press9
A poll of the House Ways and Means
Committee showed today that Il
President Roosevelt should suggest
heavy inheritance and increased gift
taxes as a means Of redistributing
wealth his proposal would fall into
sympathetic hands.
The check disclosed that of the rs
committeeman, IA would go along on
an inheritance-gift tax program,
most of them without qualification,
Two others said they would not, while
nine were doubtful.
A Democrat who Is one of tht two
opposing such an idea said privately
the President had been told any
change in basic tax structures a year
before the next presidential election
would be "very bad politics"
Any tax measure proffered would
either have to start through Congress
by winning approval of the Ways and
Means Committee or be attached by
the Senate or House to some other
bill sanctioned by that committee.
Fog ShrOuds Plans.
No one on Capitol Hill had any
positive idea as to what inheritance
and gift tax rates might be in mind.
The survey of the House Committee
was made on the basis of an assertion
by Secretary of the Treasury Morgen-
thau before the Senate Finance Com
mlittee. Saying that If the bonus were
paid new taxes would be needed, he
asserted that the application Of pres
ent income tax rates to inheritances
and gifts would bring in $500, 900, 900
to $500, 5000 annually.
That would mean taxes ranging
from 4 per cent on inheritances and
gifts of more than $4,000 to nearly
SO per cent of tlose over 81 200, 900
There are no direct inheritance levies
now. and gift taxes range from three
quarters Of per cent on gifts under
$4,000 to As per cent on gifts over
$4,000, 900.
Most Ways and Means Committee
members requested that their atti-
tude toward the suggested increase
be kept anonymous. One of the COM
mittee's tax leaders, Chairman Hill
Democrat. of Washington said last
week, however, that such a plan was
q wholesome idea"
Great Britain Cited.
Representatives Sanders, Democrat
Of Texas and Dingell, Democrat. oi
Michigan, made no secret of theil
positions. The former said "our estate
taxes are nowhere as high as those
in Great Britain"
Great Britain now has what are
called death duties" which, accord
ing to figures here, brought in $400,-
100000 last fiscal year. The United
States estate taxes are estimated tc
yield about $4,000, 900 this fisca
year, ending June 30 The United
States estate tax is paid by the es-
tate. It ranges from ! to so pei
cent, with amounts paid to States
deductible.
Some committee members, dubious
about the results of imposing taxes
of to SO per cent on top of tht
estate levies, suggested it might be
advisable to consider rearranging tn,
present estate tax system.
Hypothetical Case GfTen. .ss =
They said the effect of the taxes
discussed by Morgenthau would be
this: A SIS. .000, 900 estate might, first
pay s7,386,600 in Federal and Stat,
taxes, leaving balance Of $7.613, 400.
If all that money were left to one
heir and subjected to taxes as un-
earned income, the Government would
collect around $4,50O, 900 more, leav-
ing the single heir only about So ,o00,-
600 out of the original SIS ,000, 900.
OF the IA committee members whC
indicated they would favor a program
like that mentioned by Morgenthau,
IS are Democrats and one a Re-
publican. Those In doubt included
Representative Lamneck, Democrat
of Ohio. who is i'll; three more Demo-
Gratis and six Republicans. The two
who said mo" are Democrats.