Evening star., 1936-05-29
TAX COMPROMISE
VOTED, INCREASES
INCOME SURTAXES
Measure to Reach Senate
as "Soon as Possible"
King Asserts.
YIELD OF $780, 900, 900
UNOFFICIAL ESTIMATE
Bill Would Place Corporate Levy
on Graduated Basis-Exemp.
ton Removed.
Py the Associated Press,

Py the Associated Press.
After a last minute change that
would increase individual income sur
taxes except In the lowest Surtax
bracket, the Senate Finance Commit
tee today approved its compromise tax
bill
Acting Chairman King said the
measure would be brought to the Sen
ate floor "as soon as possible"
No accurate estimates of the yield
were available, but on the basis of the
latest Treasury computations. which
are subject to revision, the bill would
produce around s620,000, 900 of perma-
nent revenue-the amount requested
by President Roosevelt.
But it would bring in only an esti-
mated $4,000, 900 Of temporary funds,
as against $517, 100000 sought by Mr.
Roosevelt.
May Produce $1,000, 900.
The boost in income surtaxes was
estimated to produce upward of s5o.-
100000.
Another change was made in
lengthy closed committee session. 1t
would place the normal corporate in
come levy on graduated instead of q
fiat basis.
The committee originally contem-
plated a fiat 18 per cent on total cor
poration income. Today it voted to
make the rates 1512 per cent on income
up to $4,000. Is per cent on the next
$4,000, II per cent on the next s25, 900
and l8 per cent on all over $4,000.
Accompanying that alteration was
an agreement to remove $1,000 tax
exemption which would have been
granted corporations with net income
not exceeding $4,000 King said the
result. so far as revenue was con-
cerned, would be unchanged.
The committee rejected by l3 to
vote a final attempt by administra-
ton forces to swing the committee
over to higher graduated levies on
corporate earnings. Sen
ator Black, Democrat, Of Alabama
proposed a system for retaining the
present 1915 to Is per cent corporate
levy. with a surtax graduating up to
80 per cent on undistributed income.
7 Per Cent Levy Stands.
The committee agreed, however, to
stand by its fat per cent levy on
earnings.
The bill as approved also would
subject corporate dividends to the 4
per cent normal income tax.
King said he believed the bill would
bring in more than 100000 900" of
permanent and temporary funds.
With broad smile, he told re-
porters:
THE bill is ordered reported out
favorably."
He said the committee would meet
once more to approve a final draft
the final alterations, then
make its formal report on the measure
1t was not expected to reach the
floor before next week, however.
Vote Almost Unanimous.
On the final vote of approval, the
acting chairman said, there was no
roll call. He said the vote was almost
unanimous, although several Senators
said they we're voting to report the
bill to the floor merely to obtain action
and without being committed to sup
port it.
Whether the retreat Of the other
side was strategic one, made with
the idea of beginning the fight anew
later, will be known when the Senate
starts debate on the bill next week or
when the measure goes to conference
with the House The latter chamber
already has passed bill more in line
with administration tax philosophy
Of higher taxes on undivided profits
to revive the issue in the conference.
Impasse Surmounted.
The long-standing impaSse In the
Senate Finance Committee was sur
mounted late yesterday, shortly after
Vice President Garner had stepped
into the picture to hold an earnest
conference with Senators Barkley,
Democrat, of Kentucky, and Connally,
Democrat. Of Texas, two committee
members.
Whether he brought word from the
White House to wind up the fight in
the committee was not disclosed. al
though there was much speculation
on that point.
The House bill, passed weeks ago,
(See TAXES, Page AID