Evening star., 1939-06-03
BY JOHN C. HENRY.

concentrations last Saturday.
BY JOHN &C. HENRY.
Republican resistance to limiting
current tax revision to corporation
levies threatened today to force a
broadening of present studies, per.
haps delaying enactment of reve-
nue. legislation until late summer
or until next session of Congress.
Breaking out in the House Ways
and Means Committee during hear
lngs on tax revision, the minority
rebellion was led by Representative
Treadway, Republican, of Massa-
chusetts, on grounds that a quorum
OF the committee was not present
late Wednesday when it was decided
not to consider personal or excise
imposts at the present time.
Before the row had ended, Rep
resentative jenkins, Republican, of
Ohio asserted that when the COM
mittee met Monday, he would move
that the present restriction on It's
deliberations be removed.
The controversy interrupted tenn
porarlly the presentation of an
eight-point program OF tax reform
submitted on behalf of the National
Association of Manufacturers, by
Noel Sargent, N. A. M. secretary.
Included were several suggestions
not directly applicable to corporate
taxes, consideration of which had
been shut off by yesterdays de.
cision.
Treadway Objects.
Il am Of the opinion that there
was not a quorum present when
the important decision was made
to limit the present consideration
to corporation taxes only" Tread.
way remarked.
Il consider it extremely unfair
to those subject to other taxes and
to those appearing here to discuss
such other taxes.
Il think the American people are
entitled to an open hearing on the
full subject of tax revision. and I
want to take very definite objection
to the decision of yesterday after
noon. Furthermore I want to saw
that the American people should
not be influenced by the summer
temperature in Washington in
Judging the merit of any decision
by their representatives to adjourn
without thoroughly considering this
whole problem of tax revision.
Both Representatives Treadway
and Jenkins were absent when yes
terday's decision was made. Denv-
ing that the committee leadership
was seeking to take advantage of
the minority, Chairman Doughton
warned:
If We make such a compre-
henslve study as my friend from
Massachusetts, suggests. there cer-
tainly would be no tax relief at
this session of Congress. There
isn't any use trying to fool the
people about that There hasn't
been a single business spokesman
appear here to suggest full over
hauling of the tax structure in
the present session."
Jenkins Avoids Test.
He offered to put the question
before the committee at once, but
Representative Jenkins indicated
he would prefer to make the test
Monday.
With the Democrats outnumber.
ing the Republicans on the COM
mittee by IS to 10. control on this
issue obviously rests with the COM
mittee leadership.
The N. A. M. program proposed
full repeal of the undistributed cor
porate profits tax, but made no men,
ton of substituting a fiat corporate
income tax rate. The proposals CO.
incided in most other respects with
yesterdays suggestions of the
United States Chamber of Com
merce.
The chamber had recommended
fiat IS per cent corporate income
levy in place of the present sliding
scale.
In brief, the N. A. M. proposals
today follow:
l. Reduction of Federal surtax
rates which discourage investment
Of savings in private industry.
2. Abolition of the present capital
gains and losses provisions in the
Federal income tax.
8. Exemption of corporate divi-
dends paid to individuals from nor
NAL income tax since this involves
double taxation.
4. Elimination OF taxation of in
tercorporate dividends which results
in double taxation.
S. Abolition of the undistributed
earnings tax.
6. Abolition of the combined Fed
eral excess profits and capital stock
taxes.
7. Elimination of the ban on con-
solidated returns.
8. Elimination of the ban on on
setting previous capital losses against
current profits.
Because of the debated ruling
against consideration of anything
but corporate taxes at this time, dis