Evening star., 1936-05-12
Major Revisions in Tax
Measure Indicated
at Capitol.
HOUSE BILL INSlSTENCE-
DROPPED AT CONFERENCE
Getting Money, Not Way of Doing
So, Represented as Important
Thing to White House.
BACKGROUND

coming major corporate assessment.
House finally passed bill Dith this
prouision. but opposition of busi-
ness interests and doubts OF more
conservative members of Senate
Finance Committee threaten to
block legislation.
Senator Byrd, Virginia Democrat,
has prectpttated nev deadlock NTH
charges that certain large corpora
tions ,0ould pay lighter tares than
before.
BY the Associated Press.
New tax recommendations we're SUBJ
mitted to the Senate Finance Com.
mittee by Secretary Wallace today,
coincident with fresh indications that
the House revenue bill would be re.
vised drastically.
Strongly pointing toward much re.
writing was the word passed on Capi-
tol Hill that President Roosevelt had
informed Chairman Harrison of the
Finance Committee yesterday that it
was up to Congress to determine the
tax methods of raising the revenue he
had requested.
The important factor, the Chief Ex.
ecutive was represented as advising
Harrison, was not so much the kind
of taxes employed as it was that $780,
100000 be raised in permanent revenue
and s500,0o0,o0o through temporary
levies.
This development gave impetus
to the move within the committee
to revise the House bill for taxing
corporations on the basis of their un-
distributed income.
Hearings Are Reopened.
The Finance Committee unexpect-
edly reopened public hearings to per-
NIT Wallace to recommend
New processing taxes to raise
s220, ,564 900.
Enactment of the 80 per cent
'windfall' tax on refunded process
ing taxes.
Amendments to the agricultural adj
justment act to insure retention by
the Government of the almost one
billion dollars collected in processing
taxes.
Repeal of those A. A. A. provisions
invalidated by the Supreme Court and
re-enactment of the others.
Harrison placed before the COM
mittee letter from Jesse H. Jones,
chairman of the Reconstruction
Finance Corporation, recommending
substantial concessions" in the tax
on undistributed profits to corpora
tions using earnings or borrowed
money for new plant investment.
Wants Modernizatio Aids,
Il have not had time to study the
bill carefully" Jones said, but if SUBJ
stantial concessions could be made
that would encourage modernization,
new plant construction and new build.
ings to replace old ones. new equipment
for railroads and industry of all kinds,
including allowances for new debts
created for these purposes. the en-
ployment situation, and business gen.
orally would in all probability be great.
ly helped, and society much better
served. ."
Jones added that the proposed
method of taxing banks seems entirely
fair and highly desirable" Banks
would not be included in the undis-
tributed profits tax.
While Wallace testified. Senator
Byrd. Democrat. of Virginia drafted
resolution calling on Secretary
Morgenthau for list of big corpora
tions and the amount of reduction
in taxes available to them under the
House bill provisions.
Morgenthau had advised Byrd the
Treasury could not legally" furnish
him with the information which he
personally had asked for by letter.
Byrd's action today was designed
to make the request come from the
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