Evening star., 1938-03-05

0AChOHOONO-
Special House committee spent
many peeks last talt considering
major rerfstons in national tar
1d,Ds, principally those applying to
corporation leDieS. Recommends
tions noD before House include
notifications in undistributed cor
pordte profits and capital gains
tures. EUen more s1ueeping tar re-
DiSions are expected nert year-not
an election year.
BY the Associated Press.
Representative Boileau, Progressive,
Wisconsin, said today he might offer
an amendment to the tax bill to con-
tinue publicity for corporation salaries
over $4,000 year.
Mr.. Boileau said he agreed entirely
with President Roosevelts assertion
at his press conference yesterday that
such publicity was matter of simple
morality" Pending legislation which
revises the tax system does not include
a provision for the publicity.
Contending that some corporations
pay directors and vice presidents sal
aries ridiculously higher than their
services warrant. the Wisconsin Rep
resentative added:
1T is racket. It is a graft. And
think the one way by which to abol-
ish that racket, that graft, is to give
it publicity"
Previous Vote 2 to Against.
Even though Mr. Roosevelt has
spoken out strongly for the provision.
some prominent Democrats suggested
he might not get it, because the House
voted 2 to year ago for repeal of
the present law requiring such pub
icity. The Senate never acted on the
repeal measure.
Republicans quickly brought the
Presidents statement into House de-
bate on the tax bill yesterday.
Waving a newspaper carrying the
Presidents press conference remarks,
Representative Hoffman. Republican,
Of Michigan, arose to assert:
IF it is a question of public morals,
we ought to have it in this tax bill the
same as we did last year. Why isn't it
there?"
THE Ways and Means Committee"
Representative Vinson, Democrat, of
Kentucky, replied. bows to the VII
OF the House. We would have been
in an awkward position if we had in
cluded it in this bill after the House
had voted for repeal"
Held Aid to Promoters.
Opponents of publicity contend its
chief result has been to furnish pro-
noters and the criminally minded
with list of persons of large income.
As the House approached vote on
the tax measure, there were increas-
ing reports that the Senate might re-
volt against some portions of the
House bill.
Some Senators said they understood
Chairman Harrison, Democrat, Mis-
sissippi, had informed Mr.. Roosevelt
Of this possibility. Senator Harrison
was White House caller yesterday.
Sentiment-its strength as yet un-
disclosed-has been indicated in the
Senate for complete repeal of the un-
distributed profits tax and elimination
Of proposed new tax on family
owned or closely-held corporations.
Levy Held Discriminatory.
A leading opponent of the latter levy,
Representative Mccormack, Democrat,
Massachusetts,, declared it was 'un-
sound, unfair, discriminatory and not
to the best interests of business or the
Government"
In attempting to prevent tax eva
sion, he said it would penalize nine
innocent firms to punish one guilty
one.
Representative Knutson, Republican,
Minnesota, observed:
That's the trouble with the Demo-
Gratis; when they want to get rid of
few rats, they burn the whole barn"
But Representative Buck, Democrat,
California, said only 300 to 600 cor
porations would be affected by the
levy, and added he could not agree it
would be punitive.
There isn't any reason in the world
why these corporations which are i'm
properly accumulating surpluses
should not be treated the same as
every one else," MI. Buck declared,
Invites Surtax Motion.
Mr.. Mccormack invited the Repub-
lican minority to sponsor a motion,
just before the House reaches vote
on passage Of the bill, to eliminate the |
surtax on closely-held corporations.
Republican opposition concentrated |
also against retention of the principle |
Of an undistributed profits levy.
Representative Wadsworth, Repub- /
1ican, New York, denounced this tax
on the ground It had restricted and
handicapped the progress toward re-
covery"
In a desperate effort to catch up
with Government expenditures, he
said, the administration now has pro-