Evening star., 1935-08-25
CONGRESS ADOPTS
TAX BILL REPORT.
$3.50, 100000 Measure Is
Given Final o. K. as Silver
Bloc Gains Deal.
BY JOHN c. HENRY.

BY JOHN c. HENRY.
Congress last night completed its
enswer to President Roosevelt's plea
of June 19 and dispatched to him q
tax bill calculated to enrich the Fed
eral Treasury by $250,000,OOO per
wear, taken from those "best able to
pay"
The hastily drafted and many times
revised legislation met its final tests
yesterday with ease as Republicans
In the House contented themselves
with a short denunciation and with
forcing a roll-call vote on the confer
snce report, while Senate opposition
vas dissipated by "deaW through
which separate action was extended
to legislation sought by the silver bloc.
The House vote was PAT to 72, while
the Senate accepted the report OF the
eonferees without a record vote. The
measure now goes to the President for
his signature with no expectation that
the slight deviations from his recon-
rnendations will cause him to reject 1t.
Brought Up at S PM.
Held off through the past three
days because it was considered q key
factor in the adjournment picture, the
conference report was brought up in
the House Immediately after accept
ence of the utility conference report
about 5 pm. Following an explana-
ton by Representative Hill, Democrat,
of Washington, one of the conferees,
of Senate changes in the bill and the
agreements reached In conference, the
closing attack Of its passage was lev
eled against the measure by Repre-
sentative Crowther, Republican, Of
New York, and member Of the Ways
and Means Committee, which drafted
the original bill.
Terming the bill as the nearest
thing to purely political gesture con-
sidered during the present session Of
Congress" Crowther pleaded with the
ma jority to devise twin program" in
which the entire Federal tax structure
would be overhauled and Government
expenditures would be curtailed.
There is nothing that would give
the people Of this country greater con-
fidence today" the New Yorker said,
"than a promise that the Federal bud
get will be balanced within the next
four or five years. You couldn't levy
taxes today that would balance the
budget; they would be completely de-
structive 1t is going to be q long slow
drag and we ought to aim at 1899 or
1910.
Instead of accepting this principle
now, you have yielded to political ex-
pediency, taken refuge in the popular
cry of soaking the rich"
Others Speak Briefly.
Others to speak briefly on the meas
ure we're Representative Christensen.
Republican, of Minnesota; Ford of
California and McFarlane Of Texas,
both Democrats, and Resident Com
missioner Delgado Of the Philippine
Islands, the latter expressing regret at
inclusion in the bill of provision for
o compensatory tax on products made
chiefly Of cocoanut oils.
Representative Doughton, Democrat,
OF North Carolina, and chairman OF
the Ways and Means Committee and
the confereeS, closed the debate with
a brief defense Of the bill, declaring
that it will bring in a substantial sum
of added revenue and is step toward
the balancing of the budget. With
return of prosperity, he said, the new
rates fixed by the bill would bring in
close to an extra $400, 100000 with its
yield in full year at present business
levels figured at about $250,000,00.
Reaching the Senate side within q
few minutes of completion of the
House vote at 6:15, the report was
called up by Senator Harrison, Demo-
crat, of Mississippi, and chairman Of
the Senate Finance Committee and
conferees, and was accepted without
debate or without record vote.
One Recommendation Lost.
In the form thus finally passed, the
legislation carries out the presidential
recommendations in all but one ma
jor respect, namely: The matter OF
inheritance taxes asked by the Presi-
dent but refused by the Senate. The
major provisions of the bill follow:
l. Surtax rates are increased, start
ing with 81 instead Of 80 per cent on
the $50,00O net income bracket and
reaching a maximum of IS instead of
SO per cent on all over $4,000, 900.
2. Corporation income taxes are
graduated with q 1212 per cent levy
on income up to $4,000 and reaching
IS per cent on all over $4,000. The
present rate is 1334 per cent for all.
3. The capital stock tax On corpo-
fations Is raised from 81 to $1.40 per
$1,000 of adjusted declared value
4. Excess profits taxes are gradu-
ated with 6 per cent levy on profits
between 10 and IS per cent Of de-
clared value and II per cent above
this. The present rate Is 5 per cent
on all over. 12K2 per cent profit. A
new declaration Of value is allowed.
5. Ten per cent Of the income from
intercorporate dividends Is made SUBJ
Ject to regular corporation income
taxes. All such income is now exempt