Evening star., 1936-03-06
TAX SUGGESTIONS
HELD COMPLETED
Treasury Believed to Have
No Other Plans for Con-
gress Consideration.
BY the Associated Press.

Indications that the Treasury has
completed presentation of possible
major methods of raising money
emerged today from a session of q
House Ways and Means Taxation SUBJ
committee.
Chairman Samuel 3. Hill told re-
porters after the meeting that I'VE
just rehashed what we have gone over
before"
While indicating that attention
centered today on a tax on undis-
tributed corporation earnings Hill said
no discussion was given over to per-
mitting corporations to build up a
cushion" of reserves which would BE-
tax exempt or assessed at low rate.
Debate Indicated.
1t appeared the subcommittee ses-
sions were about to resolve themselves
into debate over relative merits or de-
merits of money sources already sug-
gested by Treasury and Agriculture
Department officials.
These included
l. A graduated tax, averaging 1914
per cent, on undistributed net in
come of corporations
2. A general manufacturers ex-
else tax
8. Revised income taxes with lower
exemptions and higher rates.
4. Processing taxes on farm and
competing commodities.
S. A "windfall" tax to bring back
Government revenue lost by return
or non-payment of processing taxes.
s. A one-third increase in present
tobacco taxes.
7. Lower exemptions for admission
taxes.
Suggestions by President.
President Roosevelt has suggested
the corporation, windfall and pro-
cessing levies.
The other proposals were submitted
at the request of the subcommittee in
order to give 1t well-rounded view of
all possible means of augmenting the
Governments income.
Speaker Byrns said at his press con-
ference he did not anticipate any gen.
eral tax revision this session.
Il hope not" he said on questioning.
That takes months, and we haven't
time, of course, unless we want to stay
here until next September"
The Speaker said ne assumed the
Ways and Means Committee would g.
into all the revenue sources in its
study, but said he personally hoped it
would select some method in which
taxes would not have to be distributed
over great many items. That, he
said, should be left for general tax re-
vision.
Possible Process Changes.
Asked about Chairman Doughton3
intimation that he would prefer no.
having processing taxes. Byrns said he
did not know Doughton's position, bu,
personally was of the opinion the base
of those taxes could be broadened and
the levies reduced as compared with
A. A. AS scale.
Chairman O'Connor of the Rule
Committee disclosed that he had "for
warded" to the committee a propose.
whose author he did not specify, t.
levy a 3-cent horsepower tax or
automobiles, after the pattern of tn
English horsepower levy.
1T is claimed" O'Connor said, "th.C
would raise $3.50 600, 900 year."
Asked if he we're making a speciG!
effort to expedite the tax legislation,
the Speaker replied; Everybody is
working to expedite the bill and / am
sure the committee will bring out a
bill as soon as it can"
Senate Hearings to Begin.
Earlier Chairman Harrison Of the
Senate Finance Committee announced
he would begin tax hearings soon
without waiting for the bill to arrive
from the House.
Administration leaders hoping to
put the corporation tax plan through
Congress were encouraged to find that
the Senate had approved q similar
proposal II years ago.
Harrison pointed to the 12-year-old
vote as an indication of favorable
reception for the Presidents program
During consideration of the 1924
revenue bill, the Senate adopted an
amendment providing a sliding scale
tax on undistributed corporation
profits. However. the House did not
accept it.
The proposal voted by the Senate
would have set up sliding scale of
taxes running from one-quarter of l
per cent up to 40 per cent, depending
upon the percentage of income undis-
tributed.
1t was based upon the same argu-
ment used by President Roosevelt. that
it would prevent leaks" in the tax
structure. At the same time the
Treasury submitted a report to the
Senate showing that out of 48,875
corporations which submitted complete
tax reports in 1922 almost 10000
distributed less than 80 per cent of
their earnings.
For the group as whole, the Treas
ury reported, the aggregate taxable
income was s4,468 900 900 and s2763,-
000 900 was distributed in dividends
These are the most recent public
figures on undistributed corporation
profits. though the Treasury has re-
Gently made a similar unpublished
study, on which President Roosevelt