Evening star. [volume] (Washington, D.C.) 1854-1972, 1938-01-16
ORETAXCHANGES.
HELDL|KELYLATER.
Magill Tells House Group
Personal Exemptions
May Be Altered.
Dy TIE Associate Press.

May Be Altered.
By tire Associated Press.
The Treasury's chief tax expert told
congressional committee yesterday
that further extensive tax law re-
visions might be proposed at some
later date"
Undersecrstary Roswell Magill made
that assertion to the House Ways and
Means Committee At initial public
hearings on q subcommittee recon-
msndattons tor changing the tax sys-
tenn.
He said additional revision might
touch on such matters a.:
Personal tax exemptions, repeal Of
all Temporary" manufacturers excise
taxes. tightening the relationship BE-
tween Federal and State taxes and
taxing interest on future issues Of
Federal. State and municipal securities.
Speaking for his department, Mr..
Masill tndorsed the subcommittee
recommendation, which involve modi-
fcatton OF the undistributed profits
and capital gains levies and many
other charges. He had helped the SUBJ
committee work out It's program.
win Relieve Inequities.
II embodied In legislation, the pro-
posals will effect many important
Improvements in the existing revenue
system" and relieve some Of the most
serious ineQuities," Undersecretary
Masill said.
But In seeking speed. 50 taxpayers
might be informed a. early As possible
Of tax liabilities and contemplated re-
lief. he said the subcommittee had to
concentrate On correcting the most
striking ineQuities" and pass over 4
number Of subjects.
For these reasons, it has not been
practicable to engage in a wholesale
reform Of the entire revenue SYSTEM"
he said
He listed these seven subjects. which
he said the Treasury WAS considering,
and upon which recommendations
may be made to the appropriate COM
mittee or subcommittee at some later
date:
Tax-Free Securities.
Elimination Of Federal and State
TAX exemption on interest from future
issues Of Federal. State and municipal
securities and on incomes of Federal,
State and municipal officers. He rec
commended constitutional amendment
to end the tax exemption for interest
on future public securities.
Gradual repeal Of manufacturer
excise taxes on commonly used COM
modities, and the substitution Of in
creased income and estate levies II
necessary to recover the lost revenue.
Consolidation Of the estate and gift
taxes.
migration of Federal and State
taxing systems.
Simphfication and consolidation OF
tax administrative provisions. with par
ticuiar reference to suits and appeals
involving deficiencies and refunds.
Further provision for application of
net operating losses Of one year against
net operating income Of ensuing years.
The general problem Of exemptions
and credits. including personal ex-
emptions and the earned income credit.
Frsfits Tax Idea Backed.
Mr.. Magill was the only Treasury
witness. The committee intends to
begin hearing private individuals to-
morrow n
The Undersecretary advocated re-
tentton, at least in principle, Of both
the capital gains and undistributed
profits levies.
There was no convincing evidence"
he said. that the operation of the
undistributed profits tax or Of the
tax on capital gains had been 4 major
factor In the business recession
Representative Treadway Of Massa-
chusetts, senior Republican member
Of both the subcommittee and the
full committee, took exception at once
to that statement and to Mr.. Magills
references to the subcommittee,
recommendations"
Republicans Disagree.
Il wish to say now that the minor.
ity frequently opposed many of the
proposals." Representative Treadway
said. I'VE desire to be recorded n not
In accord with many of the recommen.
datioos, particularly the manner in
which the undiatributed profits and
capital gains taxes are disposed Of"
But another Republican, Represent
alive Crowther Of New York. said the
undistributed profits levy had bee1f put
IN such shape that maybe I'll have
to vote for It," even though it would
be only . "face-saving policy"