Evening star., 1936-03-08


ing net0 reUenue ,DnS through tar
on undtstributed corporate profits.
method whtch seemingly ,oould
not affect individual income as
SeSSments
BY the Associated Press.
A desire to await the March Is
yield from income taxes before de-
Gliding on the size Of the forthcoming
revenue bill was expressed yesterday
by some members Of Congress.
They asserted privately that should
improved business be reflected in a
sufficiently large increase in receipts
it might be unnecessary to raise as
much as the 1892 900 900 contemplated
for the next three years in the Roose-
velt program.
Guarded hints also were dropped
that the House Ways and Means Sub
committee might try to find some way
to pare down the figure mentioned by
the President even should income taxes
be no larger than estimated.
But accompanying these were strong
indications that Mr.. Roosevelt's main
proposal for graduated tax on un-
distributed corporation earnings would
be accepted by the subcommittee with
notifications.
S22,ooo,0oo Not Estimated.
With the corporate tax revision de-
signed to produce net additional Fed
eral income of $620,000,000 annually,
yield Of $50, 100000 from . pro-
posed "windfall" tax on refunded and
unpaid A. A. A. processing levies would
bring in 5000 900 in year-onlv
$22, 100000 short Of the sum requested
by the President.
Representative Vinson. Democrat. OF
Kentucky, a subcommittee member.
said he thought he could convince his
colleagues that the added cost of pre-
payment of the bonus will not
approach the S12o,000,ooo estimated
by the President.
Figures of the Budget Bureau ard
the Veterans Administration show. II
said, that the bonus could be paid
over 10 years by annual installmen:s
Of $l89,000,000 drawing per ceNJ
compound interest. That is only S2o-
100000 more than the Sl60,000,oGJ
which was included in the budget this
year for amortizing the bonus before
immediate cashing was anticipated.
Surveying all these factors, some
subcommittee members said it might
be possible to get along only with the
corporation and windfall levies, leav-
ing until next year the question of
dipping into other sources Of revenue.
They left no doubt that they con-
sidered such a course preferable, in
view Of the approaching November
elections.
Minority Awaits Showdown.
As Democrats showed increasing
signs Of consolidating support behind
the corporation tax suggestion, House
Minority Leader Smell of New York
asserted that Republicans would wait
to see just what kind of bill the
committee agrees on before determin-
ing to what extent the party will make
an issue of it.
But Representative Treadway OF
Massachusetts. ranking minority Ways
and Means committeeman, asserted in
statement:
Such terms as cushion reserves
'windfall taxes floating accumulation
taxes and 'equalzing processing taxes
carry no real meaning in tax parlance.
They are purely political camouflags
and dow-dressing calculated to con-
ceal an economically indigestible tax
measure on the eve of O presidential
campaign"
The Chamber of Commerce Of the
United States said in q review that
the Roosevelt program would turn
established methods Of obtaining rev.
enue upside down" and raise i'm
portant' problems for taxpayers.
Although withholding a final opin-
ion on the program because its out
lines ARE still too sketchy to permit
OF determining its broad sweep" the
chamber said there was much doubt
of the feasibility of the suggestions.
The subcommittee, after four days
of almost continual sessions, was mark
ing time until tomorrow, when it will
resume its exploratory discussions of
sources Of more Government cash.
At least another week was expected
to pass before the members could start
formulating tentative measure to be
used as springboard for starting pub
lie hearings.
Speaker Byrns said he hoped the
House would be able to act on the tax
legislation early in April. dispose Of
appropriation bills. including one for
relief, and mark of the calendar for
May adjournment.