Evening star., 1944-01-20
Final Tax Bill Vote
In Senate Hinges on
Renegotiation Terms
Ey the Associated Press.

Ey the Associated Press.
The Senate was set for a final
= vote on the $2,275 SOC, 600 tax bill
today, provided the Finance
Committee can get together on
a compromise plan to revise the
war contracts renegotiation law.
Virtually all other phases of the
bill have been disposed of. and three
of the four members of a special
finance subcommittee we're agreed
on the renegotiation amendments,
but Senator Taft, Republican, of
Ohio asked additional time to study
them.
Senator Walsh, Democrat, of Mas
sachuetts, another member of the
subcommittee. said he and Senators
George. Democrat, OF Georgia and
La Toilette, Progressive. of Wiscon-
sin had agreed tentatively to recon-
mend striking an amendment which
would exempt standard commercial
articles from renegotiation proceed
ings, and another which would re-
define the term subcontractor SO as
to exempt profits on articles not
physically incorporated in a contract
item.
The machine tool industry would
be specifically exempted as its
speeded-up production program was
regarded as having dimmed its post
war prospects.
A termination date of next De-
cember 81 would be written into the
renegotiation act. subject to a six
months extension If the President
thought that desirable. No contracts
made after that date would be SUBJ
ject to renegotiation.
Contractors dissatisfied with the
renegotiation of their contracts
would be given the right to appeal
to the courts.
In another develoment which
helped clear the way for final vote
on the bill. Senator Overton. Demo-
crat, Of Louisiana announced he
had abandoned his plan to press
for q heavy graduated tax on liquor
held tax-free in bonded warehouses
longer than four years. At present !
spirits may be kept under bond as
long as eight years before payment
Of the tax is required.
Senator Overton said he believed
the subject needed further study
and should be handled as separate
legislation. Senator Overton had
said his proposal had a double
barreled purpose: To force addi-
tional whisky into depleted market
and to bring in additional revenue
for the Government
Excise sections of the pending
measure would increase the regular
tax on spirits from s6 to 50 a proof
gallon.
Other Tax Developments.
Other tax developments yesterday
included:
Rejection. by roll call vote of A
to Is. of an attempt to exclude farm
co-operatives from the requirement
Of furnishing the Treasury annual
financial statements.
Rejection of an amendment to re-
tain the present admittance tax rate
Of cent for each 10 cents of charge
OnUeT Inc OIL dl SuCn taxes are
doubled
Adoption of an amendment by
Senator Murray, Democrat, of Mon
tana pledging Congress to make
direct appropriation when necessary
to maintain the integrity Of the re-
serve fund from which social security
benefits are paid. This amendment
came as an aftermath OF the Sen
ate's action in voting to freeze social
security payroll taxes at the present
l per cent rate for the balance OF
1914.
Senator Aiken, Republican. of Ver-
mont, tried to get the farm CO.
operatives exempted from the House
approved requirement that labor
unions, co-ops and other organiza-
tions not subject to income taxation
furnish the Treasury annual state
ments OF their income and outlay.
Senator Aiken said many of the
farm co-ops didn't have the facilities
or personnel to make the reports,
and also that some cooperative off,
cials regarded the requirement as a
stem toward taxation