The Washington times., 1938-03-30
SENATE GROUP.
MAPS TAX AID.
+ OR UTILITIES.
Seeks to Soften Blow
At Holding Firms
By ARTHUR HACHTEN

Committee today considered pro-
posals to facilitate dissolution of
public utility holding companies
caught in the death sentence"
voted by Congress.
Chairman w. o. Douglas, of the
Securities and Exchange Commits
sion, was before the committee
in executive session to discuss
methods of tax relief to soften
the death sentence" law.
Also remaining to be acted upon
by the committe before it reports
the tax bill were proposals to
tighten the law against corpora
tons withholding SURPRISES for the
purpose of permitting stockhold-
ers to escape the high surtaxes
they would have to pay if divi-
dends were declared.
"hASAEx 1AA w
A committee majority seemed
determined to knock out the
House provision boosting the ex-
else tax upon imported whiskey
from 50 to 1925 per gallon.
The committee adopted an
designed to facilitate
dissolution of personal holding
companies and thereby release
from $4,000, 100000 to $4,000, OO0,-
600 in capital assets these corpo-
rations would not sell because Of
heavy taxes.
Under the committees plan per-
Sonal holding companies and other
corporations in process of hquida-
ton would be allowed three years
to do so for tax purposes, instead
Of two years as provided in present |
law. The lower capital gains and
losses taxes carried in the commit
tees bill would apply to these cor
porations.
Foreign personal holding COM
panies would be given until June
30, 1889, to liquidate. Their dead
line, under present law, was last
December 81.
SEE BUSINESS AID
In revising the taxes on per-
sonal holding companies, the COM
mittee felt these firms would
hasten to dispose of their frozen
assets and give business a sharp
stimulation. Chairman Harrison
said:
I'VE are proposing to make it
easier for them to liquidate and
We think the Government will
receive more revenue as result"
Other action taken by the COM
included:
Approved House provision re-
quiring publicity of all personal
salaries and bonuses totaling
$4,000 or more, despite Presi-
dent Roosevelt's insistence upon
retention Of the $4,000 mini
mum in present law.
Adopted House provisions re-
pealing miscellaneous sales taxes
upon toilet preparations except.
ing cosmetics; furs, photograph
records, sporting goods and cam
eraS. Retained the tax on chew
ing gum, repeated by the House.
Rejected House provision to
boost import tax upon pork
products from 3A to 9A cents
per pound and on fresh pork
from 2la to 51a cents per pound.
CANNED BEEF TAX
Rejected the OMahoney
amendment for tax Of 3 cents
per pound upon imported canned
beef, 10 to 8.
Rejected the Vandenberg
amendment to boost excise tax
upon imported ham from "a to
6 cents per pound, IA to z.
Adopted the Clark amend
ment repeating excise taxes
upon brewers wort and malt
syrup. involving 100000 in
revenue.
Approved House provision
exempting Norway pine, north
eyn white pine and western
spruce from. the import tax of
$3.50 per 1000 feet that applies
to other lumber. Englemann
spruce was eliminated from the
exemption.
Adopted House provision re-
quiring American citizens in the
Philippine Islands to pay in
come taxes due for the years
1917-18-19.