Evening star., 1941-09-07
Administrative Bill
To Boost Tax Total,
George Predicts
Senator Believes House
Conferees VIII Accept
Lower Exemptions
By ]. A. O'LEARY.

Finance Committee predicted yes
terday that the So, 3,583 900, 900 total in
the tax bill now entering its final
stages probably will be further
boosted when administrative fea-
lures of the revenue laws are re-
vised in a separate bill this fall.
At the same time, the Georgian
joined in the belief held in other
congressional quarters that the
House conferees on the pending
bill will accept the lower personal
income exemptions by which the
Senate added S3o3, 100000 to the tax
yield.
Senator George also expressed
hope the House conferees will agree
to the Senate proposal for crea-
ton of a joint congressional COM
mittee to seek economies in Gov
ernment spending, which would be
factor in holding down future
tax increases.
Conferees to Meet Wednesday.
With the conferees scheduled to
begin informal negotiations Wednes-
day, the Senate chairman said he
thought complete agreement would
be reached within two or three
DAYS.
Although the separate bill that
is TO follow will be intended pri-
marily to improve technical def
nitions in past tax laws, Senator
George said it may have the effect
of adding a considerable amount of
revenue to Treasury collections.
AS an example. the Senator said
the Treasury may be ready to rec
ommend in that bill some revision
of insurance taxes on commercial
mutual companies. which, he said,
are not taxed to the same extent as
stock companies.
Joint Property Revival Seen.
Revival of the community prop
erty amendment is another potential
source of new revenue to be dis
cussed in the administrative bill.
Estimated to raise $50 900 900, it was
dropped from the pending tax bill
by Senate leaders yesterday to speed
final action.
\ lAC oOhSlAl w PlNNCA
married couples in eight community
property States from dividing family
income on separate returns, which,
the committee contended. gave those
States an advantage over the rest of
the country.
Senator Connally. Democrat. of
Texas, who led yesterdays fight
against the community property
amendment. said last night, how
ever, it would be resisted again in
the next bill. He said opponents of
the proposal had sufficient votes
yesterday to kill it if it had not been
abandoned.
Lower Exemption Opposed.
Although the belief prevails that
the Senate reduction in personal
exemptions. from $1,000 to $500
for married persons and from $500
to $3.50 for single persons, will be
accepted. 1t will not be without some
opposition in the House.
Representative Gearhart of Cali
fornia, a Republican member of the
| Ways and Means Committee, COM
| mented yesterday that the $50 cut
on single persons 'is too absurd to
! argue about because it would bring
In little additional revenue" He
described the $500 reduction on
married persons as "a method of in
creasing the taxes of those who
already are paying as much as they
| can" He said the House commit
! tee discussed the lower exemptions
and decided they were not worth
| considering
Informal Meetings Scheduled.
The House is not expected TO ap-
point its conferees until a week from
tomorrow, under the agreement not
| to transact business until the recess
periods ends September Is. In or
/ der to avoid delay, however. the
confereeS will begin informal meet
ings Wednesday and be ready TO re-
port shortly after they are officially
appointed.
The increased excise taxes being
| placed on numerous products and
daily expenditures are due to take
effect October j, under the Senate
bill.
Senator George said the forth
coming administrative tax bill
should be taken up in time to be
passed by Christmas, so that tax
payers will have knowledge of the
new definitions on technical ques-
tions when they file their 1912 re-
| turns.
Corporation Tax Changes.
| Aside from the lower personal ex-
emptions, other major issues in con-
ference On the pending bill are the
two changes the Senate made in
corporation taxes. One struck out
the special 10 per cent levy imposed
on companies whose earnings have
improved, but not enough to be
reached by excess profit taxes. The
other raises corporation surtax rates
from 10 per cent on the first
S25, 900 and from to per cent
| above that amount.
The proposed joint economy
group, which Senator George hopes
the House will agree to set up, would
not have power TO cut the budget.
That still would be in the hands
of the appropriation committees.
| Senator George believes, however,
! the joint committee could accom-
plish great deal by keeping the
country advised of where economies
could be effected. The committees
dealing with appropriations and
taxes in both houses would be repre-
sented on the joint committee. along
with the Secretary of the Treasury
and the Budget Director.
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