Evening star. [volume] (Washington, D.C.) 1854-1972, 1935-08-03
Taxes
Continued From First PaSe.)

| give no corresponding consideration
to the small corporation.
The amendment was defeated.
Representative Doughton then asked
that the bill be read in its entirety,
the move being parliamentary one
designed to expedite handling of
amendments.
Representative Treadway, ranking
majority member of the Ways and
Means Committee, next submitted an
amendment to strike out the section
calling for a graduated corporation
income tax. In support Of his pro-
posal, Treadway quoted L. H. Parker,
Government tax expert and consultant
of the committee, to the effect that
40 fair tax Of this type ever has been
devised.
There is absolutely no sound prin-
ciple in support of such a tax" the
New Highlander declared. NO student
Of taxation ever has recommended
such a tax to this Congress Even
this committee failed to accept 1t
wholly, but rather adhered only to
the principle in trying to conform to
the message of the President, written
for him by some brain truster."
Defeated in Vote.
Representative Samuel B. Hill,
Democrat, of Washington answered
Treadway by maintaining that the
larger corporations WELD tremendous
economic and political power.
The corporation should be taxed
on the size of its income, just as the
individual is taxed on his" Hill said.
Treadway demanded division vote
on his amendment. among those stand-
ing to support it being Representative
Greenway, Democrat, Of Arizona. The
standing vote was 70 to 36 against the
amendment, but Representative Tread
way demanded O teller vote. The
count on this was 96 to 40 against.
Representative Sauthoff. Progress
siye, of Wisconsin proposed an amend
ment taxing intercompany dividends
per cent for two years and per
cent thereafter. A proposal to levy
! new taxes on such dividends was ad-
vanced by the President in his mes
sage Of June 49,
Representative McFarlane, Demo-
GRAFT, of Texas offered a substitute ito
the Sauthoff proposal by which the
tax would remain at per cent after
the first two years.
High Enough" Says Doughton.
In answer, Representative Doughton
expressed the opinion that the cor
poration taxes provided are high
enough.
The substitute amendment lost. IS
to II. and the Sauthoff amendment
was voted down without count.
A second amendment by Sauthoff
to bring cooperative corporations
under terms Of normal tax regulation
was ruled out Of order.
Representative Thorn, Democrat, of
ONO. introduced an amendment by
which corporations would receive tax
exemption for all net income REIN
vested in expansion and improvement
OF plant structure.
| The objective is to stimulate the
heavy industries" Thorn explained.
The heaviest lag is there. 1t is a
poLcy already followed in Germany
and England: 1t is not experimental
or theoretical and has successfully
simulated business in these countries.
This will induce the American BUSH
ness man to purchase needed ma
chinery."
Plan Is Defeated.
Representative Cooper made a point
OF order against the amendment. 1t
was ruled in order. however, and Rep
resentative Hill then arose to declare
sucn an amendment would leave too
many opportunities for evasion.
1t was defeated.
Representative Marcantonio, Repub-
ilcan' OF New York proposed two
amendments for elimination Of de-
preclatlon and depletion allowances
ana Tor taxation of gains on exchange
Oh property or securities. Both were
oeIeateo without a count. :
Representative Kenney,.. Democrat,
or New Jersey, proposed an amend
ment by which the bill would be sent
BACK to the Ways and Means Com
mittee and that body instructed to
report out national lottery law. The
proposal was defeated 80 to 1s.
Representative Truax suggested
doubling OF the proposed excess profits
taxes, bringing the maximum upi to
40 per cent instead Of 20 Der cent.
Administration spokesman declined
even to answer the ohioan,s argu-
ment for his amendment and It was
defeated. rs to IA. :.
New Valuation Defeated.
Representative Reed, Republican, of
New York, sponsored an amendment
to allow corporations an opportunity
to declare q new valuation. The
present revenue act gave corporations
privheee OF declaring their own waltz
atoms with provision that this origi-
nal figure should remain "frozen."
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