Evening star. [volume] (Washington, D.C.) 1854-1972, 1935-07-29
TAX BILL CHANGES
ARE MADE PUBLIC
BY COMMITTEE
Additional Levy on All In
comes $4,000 and Up
Is Proposed.
rs PCT. RATE APPLIES
TO 100000 SUMS
New Schedule Submitted as Ways
and Means Group Is Called
for First Session.
BY the Associated Press.

BY the Associated Press.
Proposed new tax rates, tapping in
comes as low as $4,000 and taking
away three quarters of that portion OF
an income over 5000 600, were made
public today by the House Ways and
Means Committee.
The new schedule has been tenta-
lively approved by committee Demo-
Gratis who previously had agreed not to
levy additional taxes on incomes under
$150,000 and to apply the maximum IS
per cent rate only to incomes over
$4,000, 900.
At present the tax on $4,000 in
come is $1,000. The proposed new
schedule would make it $3.50.
The present levy on 81, 900 900, how
ever, is $4,000 whereas the new tax
would amount to $64l 900. =
Committee Called.
The proposed new individual in
come tax schedule was made public
as Chairman Doughton called the
first meeting of the full committee to
consider the bill drafted to carry out
President Roosevelt's idea of wealth
distribution.
The measure, tentatively approved
by committee Democrats, puts new
taxes on inheritances and gifts in
addition to those already imposed on
estates and gifts; steps up the levles
on corporation profits and assesses
corporations from 1914 to 14A per
cent on their net income.
At today's meeting the committee
finished reading only about one-third
of the 96-page bill. Doughton said
after a subsequent meeting To-Day he
would introduce the tentative draft OF
the measure.
It was reported that by a strict
party vote of 16 Democrats to 6 Re-
publicans the committee had retained
in the tentative bill the graduated
income-tax schedule.
Corporation Incomes.
Under present law, all corporation
net income is subject to fiat tax Of
i3% per cent. President Roosevelt
had suggested that be replaced with
q graduated tax ranging from 1924 to
1854 per cent.
Committee Democrats, however,
baked, finally accepting the 1874 to
14H graduation, which some termed
q face saver" AS the bill now stands,
any corporation which had net in
come of under $4,000 a year would
pay 1874 per cent tax; an income above
that amount would be taxed 14l4 per
cent.
Democrats pushed their work on the
bill and expressed confidence 1t would
be enacted this session.
Senator Vandenberg, Republican, OF
Michigan, called the plan "as grim
hoax as ever was perpetrated on the
country" and demanded that consid-
Grafton of taxes be postponed until
next Winter, when they can be studied
in connection with the budget for the
next fiscal year.
Our bills for the next fiscal year
should be courageously reduced to
the minimum permitted by our un-
avoidable necessities" he said. Then
our taxes, if possible, should balance
this budget"
Vandenberg, often mentioned among
Republican presidential possibilities,
denounced the tax plan as sterile
political gesture" which would raise
,"only q little extra pocket change"
and declared I'VE chatter of taxes in
millions to Offset known deficits In
billions"
Democrats insisted the bill should
be passed now for two reasons: First,
they said it would show the President
was sincere when he advocated the
taxes; second, they argued that bust
ness is picking up and the time has
come to think about a movement to-
ward paying off the 'piled-up debt.
--- These discussions were stimulated
by the fact Congress had its first
chance today to get An off1cial peep
at the bill, which Democrats say will
raise about $270,0O0,00O annually.
Efforts to Change Plan.
Republican committee members,
convinced their seven man minority
would be showed under by the Demo-
cratic 18-man majority were about
hopeless of changing the bill in the
committee. They planned. however,
to offer some amendments for the
purpose of building a record and then
to enlarge that record by amend
ments from the floor.
One item they will single out for
attack Is the proposed tax OF 1914
(See TAXES, Page 81