Evening star. [volume] (Washington, D.C.) 1854-1972, 1935-08-14

that the bill Is an attempt to share
the wealth"
"Five-sixths of our ordinary Fed
eral taxes are put upon poor and rich
alike" he declared, land surely the
wealthy can bear their just proportion
of the remaining one-sixth. We ought
to pass without a word this tax bill
which the President has sent us"
Senators Point Out Surtax Differences
In its analysis Of the bill, the Sem
ate Committee report dealt first with
the surtax schedule, submitting tables
to show the difference between present
law rates, those OF the House bill and
sion starts to increase present rates at
the 81 900, 900 bracket, imposing a so
per cent tax at that point and grad
uating it to rs per cent over $4,000
900. The House bill started its in
crease at $4,000 and reached the IS
per cent maximum at $4,000. 900.
The committee also outlined its
changes in the graduated corporation
income tax provision. the Senate bill
imposing. 1912 per cent tax on income
up to $4,000; IA per cent up to $40
900: Is per cent up to 100000, and
15l2 per cent above that figure. The
House bill graduated between 1874 and
l4h4 per cent.
In both of these sections, the COM
mittee stated its belief that its ver-
sion was closer to the wishes of the
President.
The report also explained its pro-
posed amendment to existing law by
which intercompany dividends would
be exempt from taxation only up to IS
per cent Of their value rather than 100
per cent. The taxable Il per cent
would be subject to regular corpora
ton taxes, the effect being a tax of
about 2 per cent on all income from
intercompany dividends.
Declaring the House schedule Of ex-
cess profit taxes unfair. the committee
explained its reduction of that sched-
ule to rates of and IL per cent in
stead of 5, 10. Is and 20 per cent
The Senate rates would apply to profits
in Excess of 10 per cent of the adjusted
declared value.
To supplement this revenue. the
committee explained. it has proposed
an increase in the capital stock tax
from 81 to $3.50 per $1,000
Regarding its substitution Of in
creased estate taxes for new inherit
ance taxes, the committee said:
while it is recognized that the in
heritance tax, in a number of respects,
Is more equitable than the estate tax,
nevertheless the difficulties encoun-
tered in designing an inheritance tax,
even reasonably free from serious ad-
ministrative difficulties, are very nu-
merous. Your committee feels, there
fore, that. in view of the short time
available for the study of an inherit
ance tax, 1t is eager to accomplish the
same general purposes by an increase
in estate tax rates"
Exemption Lowered.
The new schedule would lower the
exemption from $4,000 to SAC, 900 and
bring the tax rate to 10 per cent
for estates over $4,000, 900. The pres
ent rate is so per cent. Gift taxes
on donors are increased to three
quarters Of the estate ute in each
bracket.
ut IS proposed" the report con-
tinued, that the increased surtaxes
shall take effect with taxable years
beginning after December 81, 1885.
This Is the same effective date as
recommended by the House bill in
connection with this provision. The
same Is true in connection with the
graduated income tax on corporations
and with the reduced deduction al
lowed on domestic dividends received
by corporations.
The increased capital-stock tax