Evening star., 1936-03-16
PROCESSING TAXES
AGAIN CONSIDERED
Congress Struggles With
Program With Eye on
Income LevieS.
BACKGROUND

While income tar receipts prom
Use to erceed those OF recent years,
neto leuieS are being considered by
Congress Specifically, plan under
examination is for assessing undis-
tributed corporation profits. such
tar to replace present ones on cor
poration income, ercess profits and
capital stock
In operation, proposed tar sup
posedly tCould force greater diui-
dend disbursements with these, in
turn, taxable through individual
income leuies Two major pedk-
nesses hare been disclosed in
scheme: One. that foreign holders
OF American stock are not subject
to individual income tares OF this
country and, tpo, that wholesale
distribution OF corporate reserves
tDoald ,oeaken companies in time OF
business depression.
A possibility that congressional tax
drafters may have to resort to proc
essing taxes to fill out President
Roosevelts s792 100000 revenue pro-
gram appeared today. despite desire
among both Democrats and Repub-
licans to avoid such election-year
levies.
I'VE don't have to 60 to processing
taxes, but we shall have to 60 some
where to get s792, 100000" Chairman
Hill of the House Ways and Means
Tax Subcommittee said.
"Of course. II the March Is in
come tax returns show a very great
increase over estimates. that would
help lot"
The subcommittee, he told reporters,
spent two hours this morning strug-
Cling over the question of how to
collect income taxes from foreigners
on their dividends from stock in
American corporations. No decision
was reached.
Hill said the subcommittee wanted
to approach the Presidents figure "as
nearly as we can"
Studies to Be Concluded.
He added that the subcommittee ex-
pected to conclude its revenue studies
this week. so that open hearings be-
fore the full Ways and Means Com
mittee could start next week Wheth-
er the subcommittee will file a report
on its findings with the full commit
tee or submit tentative tax bill has
not been determined.
Hill said estimates of the windfall
tax yield varied and IF we get $780,
100000 it will help some The SUBJ
committee is not too optimistic" he
said, about getting as much as $780,
900 900. even if the highest legal tax
is imposed to recapture refunded or
unpaid processing taxes.
The Treasury has suggested a 90
per cent levy on incomes derived from
the return or non-payment of the old
processing taxes.
Few at Collectors Office.
In Washington the Office of the dep
uty collector of internal revenue, at
Twelfth street and Constitution ave-
nue., drew a surprisingly small crowd
this morning. despite the fact this was
Government pay day. Many were
expected to file returns later in the
day, however.
Government experts we're available
during business hours only at 10 down.
town banks. Returns from here also
may be mailed to the collector of in
ternal revenue at Baltimore, the head
quarters for this collection district.
Many legislators hoped the returns
throughout the country would be
much larger than estimated. In that
case, some of them believed, Congress
might scale down the new tax program
advocated by President Roosevelt tc
finance the farm aid act and part OF
the bonus cost.
Because of the approaching cam
paign, many legislators have indicated
they want to make the tax program
as small as possible.
Treasury Optimistic.
The Treasury was optimistic about
the income tax returns. In the Of
fetal budget calculations the de-
partment's experts estimated that q
minimum of $438, ,0oo, 900 would be re-
ceived this month, compared to $32l,-
GOT 900 last March and $228, ,525, 900 In
March, 1884.
Unoficially, however, the Treasury
expected the collections to run higher
than the official estimates. Most OBJ
servers looked for q total Of at least
s450, 900, 900, with some placing the
figure as high as $500. .000, 1000.
So far, this month the collections
(see TAXES, Page A-4.)