Evening star., 1936-06-03

90 S'ftt' WI" "S Stttt %1pC|EtN W
Senate floor and in conference.
Fy the Associated Press.
AS Senators in charge Of much
revised tax bill drove it through de-
bate today in an effort to pass it by
tonight, the Chamber of Commerce
of the United States opened fire on
the measure.
The Chamber distributed a state
ment saying that while the bill IS
better than that passed by the House
it is open to many serious objec-
tions" and would have destructive
effects upon companies"
This was only one of several de-
velopments in a Swift-moving Situa-
ton. Another was an intimation in
Capitol Hill circles that President
Roosevelt might compromise and swing
bill. which is far out of line with his
suggestions for stiff. graduated taxes
on undistributed profits of corpora.
tions.
This would mean that some por-
tions, at least, of the House bill,
which more nearly comedies with
White House ideas, might be scrapped.
Many Senators felt that the Senate
bill would pass the Chamber about
in its present form and that a COM
promise would be effected in confer
ence with the House. The Senate
measure includes tax Of 1871 10 10
per cent on net corporation income.
per cent levy on undistributed
profits and increased surtaxes on in
dividual incomes in Surtax brackets
over $4,000.
The Chamber of Commerce pub
1ished figures which showed. it said,
that the corporate levies would mean
increases ranging from 20 to SO
per cent in the Federal tax on 1896
earnings" of corporations with in
comes from $4,000 to s1o,0O0,O0o, pro-
vided this income did not include
dividends from other corporations.
Statement of Sibley.
In brief" said President Harper
Sibley, the measure contains forms
and rates of taxes and other features
which should have no place in revenue
/ legislation at any time and which, in
this period of reconstruction, would
have destructive effects upon COM
panies."
| Earlier Capator Eipo nap,ocrot ~
Utah, acting chairman of the Senate
Finance Committee, had submitted q
ma ajority report on the tax bill con-
tending corporations should pay higher
taxes because the Government had
helped them recover.
Now that there has been a gratify-
ing increase in the volume of business
ana in the circulation of money" he
said, lit is believed by many that there
should be increased corporation rates.
with view to taking from corpora
tions the reasonable sums necessary to
protect Government credit"
But he said the House bill would
iniure small corporations, aid monopo-
lies and tend to ''stif1e growth or eX-
pansion of business"
The Senate, voting on separate parts
of the bill amid vehement debate yes
terday. reached decisions on all but
the corporate and income surtax pro-
posals, vital parts of the measure.
These we're left for consideration to-
day.
The chamber tentatively approved
committee amendments to a wind.
fall" tax through which the admins.
tration seeks to collect part of A. A. A.
processing taxes which professors did
not pay.
Also approved were provisions for
refunds of processing taxes on products
sold abroad or to charitable institutions
and on floor stocks existing when the
Supreme Court invalidated A. A. A.
After some debate the Senate de-
cided to tax imports of perilla oil and
to delete inedible olive oil from the list
of commodities subject to excise taxes.
The general strategy of Republicans,
as decided on yesterday, was to uphold
the Senate measure as against the
House bill, but 70 vote against it on the
| final roll call,