Evening star. [volume] (Washington, D.C.) 1854-1972, 1954-07-02
Senate Hoping
For Passage Of
Tax Bill Today
Speed Expected on
Promise of Recess
Until Tuesday
By J. A. oLeory

Inc senate met az ~ O'CLOCK
this morning in another effort to
finish the big tax revision bill.
after failing to pass it in q 10
hour marathon session yesterday.
When weary Senator's called it
q day at 2 minutes before mid
night. only q few amendments
remained. The promise of a
weekend holiday recess until
Tuesday was expected to hasten
passage today.
The king-Size measure, rewrit-
ing thousands of sections of the
tax code for the first time since
the gay nineties. will then 60 to
a Joint conference with the House
to settle differences.
One of the biggest differences
came Unexpectedly yesterday
when II Republicans and Demo-
Gratis Joined in knocking out most
Of the special relief for dividend
income approved by the House.
Only Is Senators stood by it.
Higher Exemptions Beaten.
The sudden reversal on this
issue was an aftermath of the
defeat Wednesday of two moves
to give low-income wage earners
a further tax cut through higher
exemptions. Most Senator'S de-
cided they could not justify vot-
ing relief for stockholders after
turning down wage earners.
Then they rejected third at.
tempt, by Senator Long, DEM
ocrat, of Louisiana to give every
taxpayer a $40 cut on his income
tax bill, whether he lives on
dividends or wages. This failed
so to 80.
The Senate approved another
amendment which would deprive
tax-exempt organizations Of
their exempt status If they con-
tribute to any movement which
appears on the Attorney Gen.
erals subversive list. It was of.
fered by Senator McCarran,
Democrat of Nevada.
Depreciation Rules.
The Senate refused. so to 20,
to knock out the new deprecia-
ton rules recommended by the
administration to aid business
expansion. They would permit
industry to charge. of more OF
the cost Of machinery in the
early years Of its use. Senator
Morse. independent. of Oregon,
moved to eliminate it.
The Senate had trouble max
ing up its mind about tax relief
for widows and widowers with
dependent children. It first put
back a House provision allowing
single persons who qualify as
heads of households the same
income splitting privilege given
couples. Later it elimi-
mated the amendment again.
But. since the House has APP
proved 1t. the conferees may still
consider it.
In an effort to ease double
taxation of dividends, first in
the corporation tax and later on
the returns of the stockholders,
the House adopted a relief plan
as follows:
In the first year OF the bill,
recipients Of dividend income
could exclude the first $50 and
claim a S per cent credit on
the remainder of such income.
After the first year the deduc-
ton would have been 500 and
the credit 10 per cent.
Whittle Away at Plan.
When the Senate got through
away at the plan yes
terday all that remained was
the $50 deduction in any year,
with no credit against the re-
mainder. This question also is
still subject to further compro-
mise in conference.
Senator Humphrey, Democrat,
Of Minnesota got an amendment
adopted to provide farmers with
tax incentive to build grain
storage bins. 1t would allow the
cost to be written of in one in
stead of three years.
BY correcting numerous in
equities. the bill gives taxpayers
more than 81 billion of tax re-
lief. in addition to more than
IS billion of tax cuts which al
ready have taken effect this
voar