The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-06-20

~ nuNnufn PROM rage OnfN
would paw most-probably all-the
new tax bill
The United Press was informed
that the Roosevelt personal tax plan
was aimed principally az Million
dollar incomes. OF which there we're
IS IN 1893
Presentation of this plan 10 en-
courage wilder distribution OF
wealth and 20 curtal inherited
economic power aroused partisan
Fouse cheers and some Senate en-
thuaasm as well as sharp differ
ences n opinion. II vas presented
yesterday in a special message 70
CongresS
Chairman Robert l.. DOughtOn Of
the House Ways and Means Com
mirtee said he would summon COM
mittcemen today 10 consider the tax
proposals Senate radicals are
maneuvering for immediate enact
ment- But New Deal congressional
leaders generally desire delay UNI
OIL next session. Mr.. Roosevelt,s
message suggested time would not
permit Congress to do the Job I'M
III next year.
He charged that existing tax poll
cies have not prevented unjust
concentration Of wealth and eco
nOmic power"
AsSailS Inherited Power
He said inherited economic power
vas as inconsistent with this gene
ration as was inherited political
power when the colonies rebeIled
against the British monarchy Of
George III
Mr.. Roosevelt warned that.
Social unrest and a deepening
sense n unfairneSs are dangers to
our national life which re must
minimize By rigorous methods"
The message committed the New
Deal 10 restrict" individual incomes
IN the higher brackets-over ST.
100000 n year.
The immediate Roosevelt plan TO
obtain ample revenue without dis
couraging enterprise and 20 distrib-
ute tax burdens equitably is as fol-
lows.
]. High inheritance and gift taxes
on all very large amounts received
by any one legatee or beneficiary"
Segregation Of this revenue for re-
duction Of the national debt.
? Tax levies to restrict very
great individual net incomes"
g. Substitution of a graduated
corporation tax ranging from IO7s
10 49, per cent for the existing
49, per cent rate
Adds Two Objectives
To this immediate program Mr..
Roosevelt added two long time OBJ /
IeCtives:
!. Taxation TO simplify corporate
structures by elimination OF "un-
necessary holding companies" in
ell business.
?. Submission and ratification Of I
= constitutional amendment to re- +
move the tax exemption from Fed /
eral. state and local government /
securities
Except for the suggested mini /
mum and maximum corporation /
taxes graduated according to the /
size OF the corporations income. /
Mr.. RoOsevelt'S recommendations
outlined for Congress only the broad /
detectives of a new tax policy. /
Treasury officials estimated infOr-
mally that approximately $1,000
100000 Of new annual revenue
might be expected ultimately from /
a tax plan along those lines.
A rough estimate of the compost /
ton OF that added revenue on he /
basis Of normal business conditions
listed.
Inheritance and gift
taxes -----.----... 100000 900 /
Taxed governmental
securities ..--.-.. 100000 900 ]
Personal income tax. 75.0O0O 900 /
Corporation tax ...... 225. 900 600 /
Total .............Sl.O 600 900 900 /
Hottest dispute promised to center /
around the proposal to increase cor /
pOratiOn taxes and ultimately TO /
eliminate unnecessary holding COM /
panieS by imposing tax levieS on the /
transfer Of dividends from unit 10 4
unit within holding company struc-
lures The Senate has passed but /
the House is baking at Mr.. RCcSc- /
veltS bill 10 abolish unnecessary /
public utility holding companies. /
Extension Of the abolition program 1
10 business in general would multi +
ply the opposition.
Complaint Is Developing
Against graduated corporation
taxes TO shift a greater proportion Of /
the burden to the largest businesses
there already is developing COM
plant that a multiplicity Of c0rpOr-
ate levieS now impose maximum
bearable burdens.
These existing taxes include: the
IS, per cent income tax: a per
cent excess profits tax on income in
excess Of 1913 per cent Of the de-
clared value Of capital stock; the
various manufacturers excise taxes
now being continued for another
year. a one-tenth Of one per cent
on the par value Of a capital stock
issue. and a levy of = per cent up
To 100000 and IS per cent over that
sum on corporate surplus funds ac-