Evening star., 1937-07-02

liability. President asked Congress
to conduct public hearings. during
1ohich names OF some Of Nations
best kno,Un personalities hare been
mentioned among those employing
one or more unique procedures to
cut their tar obligations.
BY the Associated Press.
Roswell Magill, Treasury Undersec-
retary, told congressional tax invests
gators today the Governments reve-
nues could be increased approximately
sl93, 100000 annually If husbands and
wives throughout the country were re-
quired to pay single tax on their
joint incomes.
Discussing the question OF commu-
nifty prosperity, Magill said eight States
permitted husband and wife each to
report one-half Of family income for
tax purposes, although all the income
may have been earned by only one OF
them. This division placed their in
duced their taxes, he said.
The so-called community property
States are California, Texas, Louis
lana. Kentucky, Arizona, New Mexico,
Idaho and Nevada. Magill said if
husbands and wives in these States
alone had been required to pay in
come taxes on their total income in
1885 the Government would have re-
ceived an additional 34000,O00.
Astor Is Cleared"
When the committee started its ses-
sion Magili said he had ascertained
| that the yacht Nourmahal. owned by
Vincent Astor, had not been incor-
porated and its expenses had not been
| deducted from Astor's tax returns.
President Roosevelt has taken sew
eral fishing trips on the yacht.
Representative Crowther, Repub-
lican, Of New York had asked Magill
| for information about it. Previously
the committee had heard testimony
that some yachts had been incor-
| porated in schemes used by wealthy
persons to reduce their taxes.
Magill's testimony came after Charles
T. Russell, deputy commissioner of
internal revenue, had recommended
visions in the revenue laws
In that connection, Magill told the
committee one of the remedies for
abuse Of the pension trust provisions
being considered was an amendment
to require that all such trusts be ire
vocable
Pensions as \ Dodge.
Representative Vinson, Democrat. of
Kentucky, had pointed out companies
creating revocable trusts could dissolve
them whenever such action would be
to their tax advantage.
In a statement filed with the COM
mittee Russell said that information
available indicates that some taxpayers
are attempting to convert into tax
avoidance mechanism a statutory pro-
| vision designed to encourage pensions"
The evidence on hand indicates
that some closely held and closely con-
| trolled corporations are attempting to
distribute profits in the guise of pen
sions." he said
Arthur H. Kent, assistant general
counsel OF the Treasury, discussed tax
alton OF nonresident aliens. Treas
ury ohhcials had lists of individual
names. but because no question OF
lllegality was involved, the lists were
not inserted in the official record.
| Aliens Benefited.
| Kent said nonresident aliens en-
joyed some very substantial tax bene-
| flts' under present rates, as compared
with residents OF similar income.
This inequality" he said. could
be minimized. or removed. and SUBJ
stantial additional revenue obtained
by some readjustment of the with
holding rates and or the imposition
of an additional tax burden by way
OF surtax upon the non resident
alien recipients Of larger incomes"
When Kent finished, the committee
adjourned until Tuesday, when it will
meet in executive session Magill said
he believed the Treasury had con-
cluded It's presentation Of testimony
for the record
Chairman Doughton told reporters
the investigators would determine
future procedure Tuesday and decide
whether to subpoena some Of the in
dividuals whose names have been
brought into the hearings.
Referring to the spectacular intro
duction Of prominent persons into the
tax hearing Undersecretary Magill told
the Investigating Committee:
The name business is substantially
over"
Seven Save S1,s50.00O.
Magill told reporters the Treasury
was willing to help should the commit
tee desire to examine tax returns OF
President and Mrs Roosevelt and ad-
ministration chiefs, as suggested by
Representative Fish, Republican, OF