Evening star. [volume] (Washington, D.C.) 1854-1972, 1938-03-10
SECOND MEASURE
T0F|LL IN TAX GAP
MAY Be PROPOSED
Doughton Opposes Haste,
Feels Those Affected
Should Be Heard.
TREASURY is PREPARING
ALTERNATE PROPOSALS
Chiefs Pessimistic Over Reviving
Provision on Closely.Held
Corporations.
BACKGROUND

Acknowledging consistent criti-
cism of undiStributed corporate
profits and capital gains tnIeS,
House Ways and Means Committee
this uinter proposed notifications
OF both in bill notD before House.
Included yas new precision to dp-
ply 20 per cent surtar against un-
distributed income of closely held
operating companies, stricken out
by tote on floor yesterday AFTER
noon
Bs the Associated Press
Chairman Doughton Of the House
Ways and Means Committee today
suggested that Congress might be
asked to enact a second revenue bill
to make up the estimated $4,000 600
to s45 100000 pared from the prospec-
tive yield of the tax revision measure
by removal of levy on closely held
corporations.
He said that was his own idea and
did not necessarily represent the views
! of his committee.
He added he had not received from
the Treasury any suggestions for ad-
ditional revenue and had not asked for
any, although he had discussed the
| revenue situation with Secretary Nor
genthau this morning.
Earlier Mr. Morgenthau told report
ers the Treasury was preparing alter
nate revenue-raising proposals for Mr..
| Doughton's guidance should the lat
ter desire them.
May Go on to Senate.
Mr. Doughton said if the House per-
sisted in its refusal to approve a tax
on closely-held corporations the tax
bill might be sent to the Senate. and
| another revenue measure brought in
later.
Personally" he said, Il feel We
should have little more time to con-
slider additional revenue. 1t is not a
wise or proper way to legislate by at
tempting to raise millions of dollars
on the floor Of the House
If we are going to put any more
OF a tax burden on any one think
we should give those affected an op-
| portunity to be heard.
"As to the best means of raising
more money, am undecided"
Mr.. Morgenthau declined to COM
ment on yesterdays House action ex-
| cept to say the administration wanted
/ any revenue losses in the bill made up.
recheck of the bill as revised up to.
! last night, he added. showed SAL ,OOO,-
| 600 more was needed
Mr.. Morgenthau spent most of the
early morning hours in telephone
communication with Democratic lead
ers of the House and announced his
readiness to furnish substitute pro-
posals afterWard. He indicated the
suggestions, when requested, would be
sent in the form of a letter from
himself to Mr.. Doughton.
Little Hope Is Held.
Administration leaders in Congress
held little hope of persuading the
House to restore to the tax bill the
deleted levy on closely held corpora
tions.
They decided to call for another vote
on the proposal, despite their general
pessimism that it merely would re-
affirm the l80-to-124 margin by which
the tax was blue-penciled yesterday.
Democratic members of the House
Ways and Means Committee decided
not to recommend substitute levies to
offset the revenue loss.
They declared that since the entire
House had discarded the so-called
lib" tax, it should assume the re-
sponsibility for raising more funds or
should turn the task over to the
Senate.
Urges Liquor Tax Increase.
Representative Robertson, Demo-
crat, OF Virginia proposed raising the
Federal liquor tax from 50 to S2.25
| n A