Evening star. [volume] (Washington, D.C.) 1854-1972, 1936-05-31
TAX BILL FACING
SENATE BATTLES
Republicans all Confer
ence-Passage of Compro.
mise Plan Predicted.
Py the Associated Press.

Clashing opinions sounded yesterday
over the Senate Finance Committees
revised bill to boost income sur
taxes and levy heavily on corpora
tons, with battle lines forming on
three fronts.
Senate Republicans were called to
confer before the opening Of floor de-
bate this week to determine their at
titude toward the bill.
Senators who forced committee ap-
prevail Of the compromise bill, which
ignored President Roosevelt's call for
higher taxes on undistributed cor
poration income. predicted it would
be passed by the Senate.
On a third front. administration
forces served notice they would fight
on the floor to shove the bill back
into line with White House wishes.
Black Writes Minority Report.
Senator Black, Democrat, OF Ala
bama, spent yesterday morning writ
ing a minority report and said he
would attempt to insert more drastic
taxes on undistributed corporation
profits when the bill comes before the
Senate for consideration.
Congressional leaders. pressing for
adjournment next Saturday night,
hoped meanwhile to obtain prompt
Senate approval of the $2.37o. 900 900
deficiency-relief appropriation bill.
But with the entire adjournment
situation pegged on the tax bill, many
we're openly skeptical Of reaching the
June goal.
The Senate Committee bill would
increase surtaxes on individual income
surtax brackets between $4,000 and
$50 900: tax corporation income at
ISL, to 10 per cent; levy on undistri-
buted corporate earnings at fat 7
per cent rate, and subject dividends
in the hands Of shareholders to the 4
per cent normal income tax.
Farley Is Called.
Senate Minority Leader McNary Of
Oregon told party members to stand
by for a parley tomorrow or Tuesday.
after copies of the tax bill in its final
form and the majority report on 1t
are available.
Although McNary did not offer any
forecasts as to how Republican senti-
ment would crystalize. a number OF
minority members said they expected
| to combat the tax bill, but to favor
it in preference to any measure that
would approach more closely to that
passed by the House.
The acting Finance Committee
chairman. Senator King. Democrat,
Utah, said he hoped to start the bill
through debate tomorrow and OBJ
tain final action on it in two days.
| But with the measure far afleld
both from that passed by the House
and that urged by President Roose-
Welt, a sharp and prolonged confer
ence fight with the House apparently
was assured unless the Senate makes
wholesale revisions.
Harrison's Aid Sought.
Supporters of the compromise pri-
vately expressed hope they could
count on the help of Chairman Harri-
son Of the Finance Committee in their
drive to jam the legislation through
the Senate with no major alterations.
When the compromise originally was
worked out, Harrison told four differ
ent committee members he would
back it.
He has been i'll for several days,
however, and there was no certainty
that he would be able to return for
the start of floor skirmishes. Dur
ing his absence the one per cent
boost In income surtaxes was added.
Black said his minority report would
recommend retention of the present
1912 to Is per cent corporation tax
with graduated levies superimposed on
corporation earnings not distributed in
dividends.
The latter would not apply to the
first 20 per cent Of retained profits,
would be 20 per cent, and on all with
held earnings beyond that, the tax
would be 80 per cent.
$500 ,Oo0, 900 Yield Seen.
The Senator said his plan would
produce more than $500, 900 900.
Senator La Toilette Progressive,
wisconsin, said he expected to sign
Blacks report, but whether there
would be other signatures remained
undetermined
Asked whether he considered the
compromise measure satisfactory, King
said:
There is no tax bill that is salts
factory. This is compromise bill and
it meets the situation. It will supply
more money than the President asked
| for"
| The President wanted $500, 000, 900
of permanent revenue and $517, ZOO, 900
Of temporary.
The latest Treasury calculations
show the Senate bill would bring in
some $500, 000, 900 of permanent Fed
eral income and $82,o00,0o0 of tempo
rary. King has contended, however,