Evening star., 1950-12-21
Tax Conferees Seek
To Have Bill Ready
Before Christmas
By Cecil Holland

A Senate House conference
committee pushed for an agree
rnent today on one of President
Truman's must" measures for
the closing session of Congress
an excess profits tax bill designed
to yield more than So billion an
nually.
The Senate passed the bill by
a voice vote late yesterday after
less than four hours of debate.
1t differs substantially from a
measure passed earlier by the
House.
The Senate bill is designed to
take $3.2 billion from this years
corporation earnings by an excess
profits tax combined with an in
crease from 20 to 90 per cent in
the corporation surtax rate.
Chairman George of the Senate
Finance Committee. who took less
than an hour to sketch the bills
highlights to the Senate, said it
would spread the tax increase
over larger number of corpora
tions than the House measure
would. The House bill calls for
straight excess profits tax with no
addition on the corporation sur
tax.
Retroactive to July.
Under both bills, rs per cent
tax would be levied on corporation
earnings which exceed IS. per cent
of the average for the best three
years of a base period of 1876
l949. Both also made the tax
retroactive to last July /.
The Senate bill provides that
the Federal Government may not
take more than so per cent of
corporations income by taxes
normal, surtax and excess profits.
The House bill fixed a limit of
81 per cent.
During the Senate debate Sen
ator Douglas, Democrat. of Illi-
nois sought to increase the limit
to 70 per cent, warning that More
money would be needed for the
country's expanding defense pro-
gram. His motion was defeated by
a voice vote.
Numerous other differences be-
tween the Senate and House bills
must be worked out in the con-
ference committee. Leaders said
they would try to reach an agree
ment so that the measure can
be rushed to- the White House
before Christmas.
Senator George was named
head of the Senate members of
the Conference Committee. Others
are Senators Connally.. Democrat, |
of Texas: Byrd, Democrat, of Vir-
ginia; Millikin, Republican, of
Colorado. and Taft, Republican,
of Ohio.
House members of the Confer
ence Committee are Chairman
Doughton and these other mem
bers of the Ways and Means Com
mittee: Cooper of Tennessee, Mills
of Arkansas and Dingell of Mich
igan. Democrats; Reed of New
York, Woodruff of Michigan and
Simpson of Pennsylvania, Repub-
licans.
After preliminary meeting
this morning. the conferees re-
cessed until this afternoon. There
was some expectation that an
agreement might be reached be-
fore nightfall.
Senator George said the bill un-
doubtedly contains errors that
must be corrected in the next Con-
gress. But he emphasized it was
the best bill his committee could
put together in the brief time
available berore the present 81st
Congress ends.
Both Senate and House bills fall
short of President Truman's re-
quest for An excess profits tax to
yield minimum of 81 billion an
nually. The Senate committee
estimated its bill would produce
$3.2 billion at the current rate of
corporation earnings; the House
bill estimates ranged from So to
$34 billions.
Climb Expected Next Year.
However, the yield is expected
to climb steeply next year. The
Senate Finance Committee esti-
mated its bill would produce be-