Evening star., 1937-07-24

Continued From First Page)
waterfront, the deficit would be only
about s7,4o0,ooo.
The sales tax Is definitely out of
consideration, because the Senate's
action removed it from the scope Of
negotiation in conference The con-
ferees. however. may compromise as
between any Of the foregoing Sen
ate provisions, and House features
that were discarded by the Senate.
These House provisions the Senate
Committee eliminated were
The business privilege tax OF three
hfths Of one per cent on gross re-
ceipts of all business concerns and
professional groups. with only ST.
600 exemption. This was estimated
in some sources to call for as hikh as
$4,000, 900. II, as seems likely, the
House holds out against the income
tax, the conferees may try TO work
cut . modified business privilege levy
with lower rate and higher ex-
emption, to make 1t less burdensome
Toward Single Tax Theory.
In place Of the Senate's heavy land
tax the House had voted TO adhere
10 q uniform rate on real estate as
whole-land and buildings-and raise
shat rate from $3.50 to Sl70, which
would have produced 81 500 900 Rep
resentative Kennedy pointed out last
night the Senate land proposal is a
step toward the single tax theory,
which the House is expected to con-
tlnue to reject. 1t is believed the
House will insist on retaining a uni
form rate on land and buildings, and
may not raise 1t as high as sl7O II
sumcient revenue can be obtained by
other adjustments in conference.
The uonferees also will have au-
tnority to consider the House increase
from Ia TO 2 per cent in the tax
on net premiums of insurance COM
panies, which the Senate eliminated
Regardless Of how the tax sched-
ules are finally adjusted in conference
it is believed the Senate conferees will
fight for retention Of their recon-
nendation for a $4,000 survey OF
the entire local tax structure before
Congress returns In January, recog
nizing the haste in which the pres
ent emergency taxes will have TO be
written
The Senate managers in conference
will be Senator's King Of Utah. Nc
Carran Of Nevada and Tydlngs o.
Maryland. Democrats. with Senat tors
Capper Of Kansas and Austin of Ver-
mont, Republicans. The House prob
ably will name five also. including sew
eral members Of Kennedys tax sub
committee.
Conferees on the local tax bill also
must settle the fate of the Tydings
amendment to the Federal anti-trus
laws, which the Senate added to tht
revenue measure after brief debate
The purpose Of the legislation is tc
sanction and strengthen State laws
that permit manufacturers to make
contracts with dealers fixing a mini.
mum resale price on the manufac.
tured products.
1t was thought at first this nationa
issue might retard the tax bill in tn,
Senate, but Tydings said in debate
changes had been made which h,
understood removed administration
objections. He contended 1t does no
weaken the antitrust laws
The luxury sales tax of per cen
With certain necessities excluded, wen
down under strong attack from
Senator's Borah. Republican of Idaho
La Follette, Progressive of Wisconsin
McKellar, Democrat OF Tennessee
Capper, Republican of Kansas, an
others.
McCarran and King, guiding the ia.
bill through, declared they. too wer
opposed TO a sales tax, but they urge