Evening star., 1936-06-23
PRESIDENT SIGNS
NEW TAX MEASURE
F. AND OTHER BILLS
Approves Interior Depart
ment and Relief Appro-
priations for Year.
DESK Is NOW CLEARED
OF MAJOR LEGISLATION
Confers With Political Leaders on
Convention Plans and Meets
Other Groups.
BY the Associated Press.

BY the Associated Press.
President Roosevelt today signed the
new tax bill and the 100000, 900 In.
terror Department appropriation bill
Signing of the long controverted tax
measure, designed to raise $500, ,00O, 900
through a sweeping revision of cor
porate taxes and other levies, cleared
the Presidents desk of major legisla-
tion passed by the Congress Just gone
home.
The tax act, a compromise between
the House and Senate, goes long way
toward carrying out suggestions by
President Roosevelt for stiff levies on
corporation income withheld from
stockholders. Advocates of his sug-
gestion contend it will force corpora
tion income into the hands of stock
holders, where it will be subject to in
dividual income taxes, while opponents
argue it will be harmful to corpora
tions In need of surplus.
Estimated Yield.
The yield of the measure has been
estimated by Senate and House con-
ferees as follows:
New corporation tax system, $780,
900, 900.
Changes in taxation in cases Of
liquidation Of corporations, $33, 900, 900.
Tightening of law applying to tax
alton Of "irrevocable trusts s2O,-
100000.
Reduction Of tax exemption of inter-
corporate dividends, s10,000,0o0.
Import taxes on fish and vegetable
oils. 500, 100000.
"Windfall" tax on persons WIKI
avoided payment Of A. A. A. processin-,
taxes, ss2.O00,0 900.
Miscellaneous, 1o,00o, 900.
The act repeals the present 12ll to
IS per cent corporation income t..
and substitutes O schedule Of 8 Pc
cent on the first $4,000, IL per cent
on the next $4,000. 13 per cent on
the next s25.o00 and Is per cent on
all over $4,000.
New Tax Principle.
1t provides an entirely new tax prin-
ciple by taxing corporation income
withheld from distribution In divi-
dends to stockholders at per cent on
the first 10 per cent withheld, IL
per cent on the next 10 per cent, II
per cent on the next 20 per cent, %
per cent on the next 20 per cent ana
q per cent on all over so per cent.
To provide a cushion" for cor
porations with net incomes Of less
than s50,oO0, the minimum z per cent
tax on undistributed earnings would
apply to the first $4,000 of income,
regardless Of what percentage the
$4,000 might be of the adjusted net
income
The deficiency bill carrying s1,425,-
100000 for relief and the omnibus
food-control measure authorizing a
$500, 100000 program in 40 States
had been signed by the President yes
terday.
In addition to his study Of legisla-
ton passed in the last days of Con-
gresS, Mr.. Roosevelt conferred for
several hours yesterday with groups
which included Harry l.. Hopkins,
Works Progress administrator; Will
liam Bullitt, Ambassador to Soviet
Russia; Donald r. Richberg, former
N. R. A. chief; John L. Lewis. head of
the United Mine Workers; Resettle-
ment Administrator Rexford G. Tug
well and Chairman Doughton of the
House Ways and Means Committee.
Action on the relief bill assured con-
tinued Federal jobs for 100000 per-
sons listed as unemployed on relief or
certified as 'in need of relief" In
new orders issued even before the bill
was signed, Hopkins told State ad-
ministrators to disregard the previous
relief job ban against those who we're
not listed up to last November l..
Hopkins, who indicated the organi-
zation for the new program was vir-
tually complete, ordered the State
directors to pick relief workers locally
and assume a larger share of other
responsibilities.
The $2,375,397,537 deficiency bill
(See PRESIDENT Page A-7l