The Western news. [volume] (Libby, Mont.) 1933-current, 1936-04-30
SEEN and HEARQ>
around the 90
NATIONAL CAPITALA< /
By Carter Field -
FAMOUS WASHINGTON CORRESPONDENT


ashington.-Capitol Hill Is simply
amazed at the falling of In mall from
constituents lately. Many offices OF SEN
ators and representatives are right
now receiving less than 10 per cent OF
their normal mall.
In the face OF the fact that a sweep
Ing new tax bill is being written, to be
Imposed on the country. this situation
Is absolutely unique.
The answer. according to some old
timers, is that the people back home
do not understand what Is going on.
For one thing, most people who have
been reading the newspapers about the
new tax bill assume that the whole
thing Is aimed at the big rich corpora
tons, particularly the ones with big
SURPRISES. One senator told the writer
that he had inquired In his own home
town-he happens to come from very
small cty-and had discovered that
not single business man In town
thought the new tax bill would hit
him
1.-THE only people who are interest
ed" he continued. ''are stockholders
In some corporations, and more OF them
are pleased than alarmed. They think
the new law will force their corpora
lions to pay bigger dividends. and they
are all for that
But the really dmazing fact appears
to be that owners of little corporations
are convinced, without knowing any
thing about 1t, that they will be ex-
empt-that only the big fellows will
bear the new burden. And this does
not make them very angry.
Whereas. senators point out the
committee program In the house pro-
vides whole schedule Of new taxes
for corporations with incomes ranging
from $4,000 year downward, as well
as from $4,000 a year upward
Have Wrong View
Most OF these owners of small GER
porations read the original press sto-
rles about the new tax plan-that
President Roosevelt wanted to elimi-
nate the present corporation Income
tax, the present corporation capital
stock tax, and the present excess prof
its tax, and substitute this sliding
scale tax on undistrbnted earnings
for all OF them.
They still hold that view, despite
the obvious fact that congress has
no intention whatever OF repeating the
corporation income tax. and may even
retain, In whole or In part, the capital
stock and excess profits taxes.
In short, the effect of the new bill,
when completed, will be to add the
new taxes to the old, not to substitute
the new for the old, as the President
recommended Nor Is there any doubt
that the President will accept the
changes. Nothing else will provide the
revenue the government must have,
especially as congress Is determined
to 20 as lightly as possible on excise
taxes.
With respect to little corporations
those with adjusted net incomes"
Of $4,000 or less-there Is sliding
scale tax In the house committee
all undistributed earnings Quite a
stable slice out OF earnings which
a struggling little corporation might
be anxious to use In building Itself
un
So the little corporation Is far from
exempt
Sliding scale taxes In the commit
tee plan for corporations with incomes
from $4,000 year up-and this In
cludes very great many corporations
In small towns which are not regarded,
even at home, as anything but little
fellows-rise much more sharply
These slide up to 4212 per cent on all
undstributed earnings In excess OF
57la per cent OF the net income.
Ii Is true that there are several class
ifications on which the burden Is
eased-railroads. banks. corporations
with debt obligations requiring the
discharge Of certain part OF the debt
every years, etc. But the owners OF
little, corporations who think that their
smalness is going TO prove an UNI
brelIa are due for very rude awaken.
tpr