Evening star., 1936-03-09
Taxes

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191 1902 individuals not now taxed, or
who would move into higher income
tax brackets, likewise would be paying
under the new plan.
The Treasury estimated total cor
porate net income for 1886 at $8,308,-
O00.00 and the number of tax returns
on such income at 257,586. Net cor
porate income in the bracket under
1000 was placed at $32 600 900 and
ranged up to $3,330000. 5000 in the
bracket of S5,O00,O0 and up.
Opposes General Revision.
Speaker Byrns said earlier he thought
the forthcoming tax bill would include
levles on undistributed corporate earn
ings, processing taxes, "windfall'
tax to recapture returned or unpaid
processing taxes-and nothing more.
If a general revision of the tax
structure is to be undertaken, it can
be done next January, the Speaker
told reporters.
That would postpone any action on
sales or broader income taxes until
after the elections.
In the face of sentiment moving in
the opposite direction, the Speaker
added, he saw no reason for any ex-
emptionS in the proposed levy on cor
porate earnings not divided among
stockholders. because corporations still
could pay the tax and build up sufl-
Gent reserves for hard times.
The corporation tax is designed to
produce $4,000. 900 in Government
revenue to meet the cost of the new
farm program and prepayment of the
bonus.
Patman Fav0rS Plan.
Representative Patman, Democrat,
of Texas. leader of a bloc that has
been fighting for bonus payment in
new currency, said chances of putting
the currency expansion move across
depended "on the kind of bill that
comes out"
If the new taxes should be rela-
lively painless, he said the cam
paign may not pick up enough re-
cruits to bring success. But if the
bill should dip into income taxes, Pat
man said, we would have a very
good chance"
Patman conceded the proposed cor
less" a tax as could be proposed and
said he favored it and would not care
to do anything that might jeopardiZe
Its acceptance.
New Dealers in Action.
High New Dealers, meanwhile, start
ed backfire of argument to head off
attempts to write major changes into
the Presidents program.
Word came from administration ad-
viSers that they were strongly opposed
to any exemptions in the drastic tax
on undistributed profits of corpora
tions
Officials say this tax. averaging per-
haps 33 3 per cent, would drive more
profits into the hands of stockholders
in the form of dividends, which would
be subject to income and surtaxes
Other taxes suggested by Mr.. Roose-
welt are temporary levies on certain
professors and on the processing of
agricultural commodities.
Compromise Opposed.
With critics of the New Deal aSSail-
ing the plan as one to soak the saw
ers,' high administration man said
last week that President Roosevelt
had been considering the corporate tax
program tor long time and would
not lightly abandon it.
This was followed today by definite
word that presidential advisers were
opposed to allowances for the pay
ment of corporate debts and to modi-
flcations designed to permit the ac-
cumulation by corporations of working
reserves. Both had beer suggested in
Congress. where the tax plan is now
being studied by House Subcommit-
tee.
The New Dealers argued that any
exemption from the profits tax to pay
off debts would increase the value of
stockholders investments, but that the
increase would not be taxable. Such
an exemption would open the door
wide to eVasions of taxes, they in
sisted.
They argued that corporations could
more easily acquire reasonable work.
ing capital under the new law than
under the old.
Under existing law, a corporation
is assessed about Is per cent tax Oil
all its net income. The new proposal
would levy an average Of 331s per
cent on profits held in the corpora
tion treasury.