Evening star., 1943-12-11
drastic Tax Barriers z
10 Avert Land Boom
Demanded by Gillette
BY the Associated Press.

BY the Associated PTess.
Drastic legislative safeguards
against repetition Of the farm
land boom that pauperised 30 many
persons after the World War were
demanded today by Senator Gil
lette. Democrat. Iowa.
Declaring he saw more tears at
the time than I ever saw BEFORE"
Senator Gillette said:
Land worth $50 q acre on IN
income-producins basis went UP to
$500 and $500. When the boom col
lapsed, thousands saw their life
savings swept away"
Iowa farmers who never before
had borrowed 4 dollar, he said,
mortgaged their homesteads to buy
more land on the upward whirl, only
to be wiped out when the boom COL
lapsed.
80 Per Cent Levy Proposed.
To slam brake on similar specu-
lation which he says already Is ap-
parent, Senator Gillette proposed 4
heavy graduate tax on the profits Of
all second transfers Of farm prop
erty after November 1, 1913.
In other words, If A sold his land
to B, A could keep the profit without
paying the special tax. But II B
sold the acreage to q speculator, C,
within two years from the time he
acquired title, he would have to
surrender 90 per cent of his profit
to the Government. The rate Of
the tax would drop progressively to
80 per cent on land held more than
five years, and no tax At all would
be assessed on transfers after six
years.
He said his plan also would have
the effect of making 1t possible for
homeseekers to buy rural property
at reasonable prices based on pro-
duction value Of the soil.
Will Offer Plan ~ Rider.
Most spectators operate on a
shoestring and have to have q rapid
turnover" he said. This bill would
make 1t much harder for them to
operate"
Senator Gillette plans to offer his
measure as q rider to the current
tax bill now being considered by
the Senate Finance Committee.
The committee, meanwhile, con-
tinued work on various amend
ments affecting the renegotiation Of
war contracts.
Chairman George conceded that
the measure, which now carries
less than $4,000, ,000, 900 added rev.
enue. could not be sent to the floor
before some time next week. When
1t reaches the floor, Senator Gil
lette plans to offer his antiland
boom amendment.
The Finance Committee yester-
day approved new legislative cush-
ions to ease the impact of forced
price readjustments on war con-
tracts
Burden to Be Considered.
Writing amendments to the con-
tract renegotiation statutes into the
tax bill, the committee stipulated
that In such renegotiation, full con-
Sideration must be given to the
financial burden on the contractor
In reconverting his plant to peace
time production.
Further. in computing the con-
tractors costs, he must be allowed
the same deductable tax allowances
as are honored in his income tax
returns.
Looking toward creation Of a CEN
trail war contracts price adjustment
board, the committee stipulated
that the chairman or vice chairman
Of the War Production Board will
be member.
Exempt from renegotiation, un-
der the committees decision, would
be all future construction contracts
let under competitive bidding after
advertisement. The Senator'S also
voted to exempt contracts or sub
contracts for articles which the
WPB directs to be furnished and
shipped at subceiling prices.