Evening star., 1941-09-05
Tuxes
Continued From First Page.

Means Committee 10 study and re-
port on more liberal pension pro-
posals.
Chairman George previously had
pointed out that, while the Senate
Committee could hold hearings on
the Downey bill, the Senate could
not pass such a bill ahead of the
House, because it involves the rails.
ing of revenue, which must origi-
nate in the House
Senator Clark, Democrat, of Mis-
souri, suggested the House probably
would resent inclusion in the tax
bill of request that a House COM
mittee do certain things, and Sena-
tor Barkley pointed out that If the
House conferees on the tax bill
should reject the Bankhead amend
ment as not germane It might be
interpreted as House opposition to
more liberal pension legislation:
While the Senate could not origi-,
nate separate pension bill irvolv-
| ing taxes, it could attach such a
| plan as a rider to a tax bill already
| passed by the House. and Senator
Bankhead said pension advocates
may be forced to hold up the next
tax bill" that comes from the House
unless the pension problem can be
considered separately.
Senator Bankhead later withdrew
| his amendment to ask the House
committee to study the question.
Iouer EyemntionS Nofed
| AS the Senate convened for the
third day of debate, it had acted
on nearly all of the amendments
by which the Finance Committee
added approximately s463 100000 to
! the House total.
The bulk of this added money
/ 1904 900, ,000-came from yesterdays
vote, lowering personal income ex-
emptions to 81 500 for married per-
sons and $3.50 for single persons.
! The fate of this and all other SEN
ate changes still hinges on confer
ence negotiations with the House
after the Senate passes the bill.
Senator Danaher, Republican, of
| Connecticut, who will take an active
/ part in the fight against the S5 fee
/ for owning an automobile, today ia
/ beled it a dangerous avenue of tax
alton to permit the Federal govern
ment to embark upon, because it is
/ a tax on use, as distinguished from
/ the many excise levies to be placed
on goods purchased
Sees New Field Invaded.
IF the Federal government can
tax citizen for the use of his au-
/ tomobile, it would have an equal
/ right to tax the silverware used on
| your table or the furnace in your
cellar" said the Connecticut Sena-
! tor.
Aside from the legal questions in
volved, the Senator said it means
| invasion by the Federal government
of another field of taxa ton on which
| the States now depend heavily for
local revenue requirements.
Only two committee amendments
were upset in yesterdays voting.
| They were:
The proposed IS per cent tax on
theater admissions, which the Sem
ate rejected in favor of the 10 per
cent House rate.
The proposed tax of 5000 each on
all gambling slot machines, which
was cut to $50 on motion of Senator
Bunker, Democrat, of Nevada, after
long and sharp debate over the
use of the taxing power to affect
the police powers of the States.
While the return to the House
admission taxes took about S45 ,600,-
coo off of the Senate total, some
Senators predicted the lower tax on
slot machine gambling devices
would raise more than the 5000 rate
would have produced, because of
a belief it would have discouraged
use of the machines.
Amendment Attached.
Senator Danaher had attached to
the bill late yesterday an amend
ment to prevent the Federal Sc
curity Administration from taking
jurisdiction over State employment
offices. He said such jurisdiction
is being asserted under a provision
written into an appropriation bill
several months ago.
After Senators La Follete and
Clark had failed yesterday in an
effort to stop the lowering of the
personal exemptions, the wisconsin
Senator also was beaten on a move
to place heavier taxes on estates, to
the amount of 100000 by raising
rates and lowering the estate ex-
emption from $4,000 to S25,00o
Under present law the theater
admission tax starts at 81 cents.
The new rate on which the two
houses have now agreed is cent
on each 10 cents of ticket price, or
fraction thereof, with no tax on
| \ IL, Re