Evening star., 1936-03-29
Lamneck to Attack Tax
Proposals on House Floor
Tomorrow.
PRESIDENT WARNS
OF BUDGET LIMITS
Commissioner Helvering First
Witness Called by Ways and
Means Committee.
BACKGROUND

bill and enactment of a ne11 pro-
gram OF agricultural benefits
brought request from President
Roosevelt for additional tar reu-
enue. His major proposal 10ds for
net0 leuies on undtstributed corpo-
ration profits and on individual in
come from corporate dividends;
such tares to replace present ones
on capital stock. erceSs profits and
corporate income. With nlodfcd-
tionS. House subcommittee recon-
nlended bill along these lines; hear
ings begin tomorrow before tuH
Ways and Means Committee.
Omitted thus far is provision for
neD processing tares.
By the Associated Press.
Rumblings of dissatisfaction in
Democratic quarters enveloped the
administrations revenue program last
night and threatened to stir up a
bitter bipartisan row in the House
Ways and Means Committee.
Coincidentally, it was disclosed that
President Roosevelt had advised con-
gressional leaders by letter to hold
appropriations more closely to budget
figures or face request for even
more taxes.
His warning was directed especially
toward the Senate, which to date
has added s159,000,000 to appropria-
ton bills passed by the House.
The letter went to Senator Glass,
Democrat. of Virginia and Representa-
tive Buchanan, Democrat, of Texas,
chairmen, respectively, OF the Senate
and House Appropriations Commit
tees. while copies were said to have
been transmitted to Chairmen Har-
rison Of the Senate Finance Com
mittee and Doughton of the House
Ways and Means Committee.
Lamneck Plans Attack.
Representative Lamneck, Democrat
Of Ohio planned the first open Demo
cratic attack on the new tax pro-
posals on the House floor tomorrow
Immediately after the Ways and Means
Committee, of which he is a member
starts hearings on them. He asserted
the taxes would destroy initiative and
penalize frugality.
Another Democratic committee
member, Representative Thompson o!
Illinois, added that although the pro.
gram had been improved vastly ovel
original suggestions, two or three
of us are keeping our fingers crossed.
Some Republican members have
been hitting at the tax plan for somt
time. A majority Of Democratic mem
bers and even some Republicans have
asserted, however. that the plan fol
new corporation tax based OF
amount of net income held in re-
serves and for a "windfall" levy OF
professors who avoided payment o
the old A. A. A. processing take
would 60 through the committee anC
probably the House virtually un
changed.
These two taxes are estimated u
yield s5e1 100000 and 100000. .ooO
respectively. The committee is f1gur
ing that sS3 100000 more might b
produced from temporary retention o
the capital stock and excess profit
taxes and s25, 900, 900 through taxation
of dividends paid by corporations II
foreign stockholders.
Presidents Suggestion.
President Roosevelt had suggested
that $500, 900, 900 be raised from ia.
on corporation dividends and un
distributed profits and $517,000.00
over perhaps three years from tn
windfaH tax and new excise taxes Of
the processing Of farm commodities.
The committee, however, scuttlet
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