Evening star., 1936-04-27

With measure nOD on 1OOT OJ
House, no major changes are eI-
pected there.
Senate Finance Committee er-
poets to receipe measure this tDeek
and, after brief hearings, make er-
tensipe reUisionS in bill as it noD
stands. About $500 900, 900 is being
sought.
By the Associated Press.
Shortly after House Republicans
we're summoned to night meeting
to discuss the administration tax bill,
Senator La Toilette, Progressive. of
Wisconsin said today he would press
amendments to boost individual in
come and surtaxes.
Representative Smell, the minority
leader, summoned his party to a con-
ference tonight on the s803, 100000
bill. Republican chieftains indicated
possible amendments to the measure
would be discussed.
La Toilette disclosed his plans to
news men after another closed ses-
sion of the Democratic Finance Com
mittee, to discuss the tax program.
The Wisconsin Progressive said he
would propose a lowering of personal
exemptions from income tax-prob-
ably from S2,500 to S1,500 for married
and from $1,000 to $500 for single
persons; an increase in surtaXes on
net incomes up to $50,000, and boost
from 4 to per cent in the normal
income levy.
To Offer Plans Separately.
He said he would offer each sep
arately in committee and if defeated
would take the issue to the floor. He
lost in similar attempt last session
on the wealth tax bill, but then he
grouped most of his amendments to-
gether.
He predicted today his change in
tactics would increase chances for
winning approval Of the amendments.
La Toilette said he was Gin SYM
pathy with the general objectives"
of the administration bill, seeking to
close loopholes for tax avoidance in
the upper brackets.
The Finance Committee today heard
A. S. McCloud, Treasury statistician.
He told reporters afterward. with the
consent of Chairman Harrison, that
the new corporation levies would raise
$623, 100000 more than under the
present structure, assuming all earn
tngs were distributed in dividends.
Republican chieftains said they did
not know just what points would be
discussed at the parley tonight.
The bill IS scheduled to reach the
amendment stage tomorrow, as only
hours and SO minutes of general
debate remained when the House con-
vened an hour earlier than usual
today for a third days discussion of
the measure.
Subcommittee Gives Hint.
of it's subcommittee that the con-
troversial corporation revenue plan
would finally be approved.
The subcommittee, considering the
separate subject of war tax legislation
decided to base its wartime revenue
plan on the administrations proposal
for taxing corporations on the amount
of profits they fail to distribute in
dividends.
Although the proposal to tax un-
distributed corporation profits had
met a cool reception from some mem
bers of the full committee, the SUBJ
committees action was taken on the
assumption the new tax program
eventually would be enacted.
There was still no other indication
of the ultimate fate of President
Roosevelt's program at the hands of
the Senate. Sentiment on the sweep
ing change in corporation taxes had
not crystallized even within the FL
nance Committee.
Now Taxed on Incomes.
Corporations are taxed at present
on their net incomes, under gradu-
ated scale running from 121s to IS
per cent. Under the new program,
they would be taxed from nothing to
4215 per cent, depending on how
much they kept in surplus instead of
dividing it in dividends.
There was a wide divergence of
opinion on policy within Republican
ranks. Senator Hastings of Delaware
had announced his opposition not only
to the administration bill, but to any
other tax measure until expenditures
were eurtailed.
Some other Republicans. such as
Senator Couzens OF Michigan, wanted
to make the tax bill raise more, rather
than less, revenue.
On the Democratic side, there was
q similar conflict of view. Some were
ready to support the Presidents plan.
Some were undecided. Senator King
of Utah had announced outright op-
position.
G. O. p. Course Uncertain.
Representative Woodruff, Repub-
lican, of Michigan, minority men,
Der of the Ways and Means Tax SUBJ
committee, said the Republicans had
not yet decided what amendments to
propose, but added:
"The wise thing to do would be to
strike out everything after the enact
ing clause except the windfal tax"
Although still unalterabiy opposed
to the bill. he said it was much better
than the original administration pro-
posals brought forward by the Treas
ury to carry out President Roosevelt's
tax suggestions.
"If the original plan had gone
through" Woodruff said, mot a cor
poration in the country could have
survived for 10 years"