The Key West citizen. [volume] (Key West, Fla.) 1879-current, 1954-07-03

to a substantial victory on 1854 tau
legislation today after overwhelm.
ing Senate approval of his general
tax overhaul bill.
Treasury Department experts
who have been battling for the ad.
ministration'S tax viewpoint be-
fore Congress for months told a
newsman they were well satisfied
with the Senate action despite some
SetbackS.
The Senate passed the bill 63 to
yesterday after five days Of often
heated debate and two months
work on the 875-page measure by
the Senate Finance Committee,
which wrote 43O pages of amend.
ments. The complicated legislation
is the first general revision of the
maze of federal tax laws since
1876.
Included in the Senate bill, as in
the version already okayed by the
House, were nearly all the relief
provisions sought by the admins.
tration. In addition, the Senate
beat back four separate attempts
to add general income tax cut
to the bill, strongly opposed by the
Treasury because of the heavy loss
of revenue involved.
The conference between the Sen
ate and House on their somewhat
differing measures probably will
get under way July IL after the
staff experts have had time to pre-
pare line-by-line comparisons.
AS passed by the Senate, the bill
contains various tax cuts for corpo.
rationS and individuals totaline
some 81, 300, 200, 900 in the next
year. The House version embodies
a 81, 4OO, 100000 reduction.
The cost to the Treasury would
be largely offset the first year by
a provision extending the So ne,
cent corporation rate to April l,
1855, rather than letting it drop tc
Al per cent. This would yield ar
extra s., 200, ZOO, 900.
The major change made by the
Senate, and the issue likely to cause
the biggest fight in conference
was to knock out of the bill mos
OF the proposed relief to stockhold.
ers on dividend income.
The Senate left in the bill onlv
the $50 exemption of such income
from taxation. AS passed by the
House, the provision would give
this exemption and also permit .
stakeholder to deduct from his tay
per cent of his dividend income
In the first year of the bill: from
the second year on, he could gel
exemption on 500 of dividend in,
come and deduct from his tax ID
per cent of such income above
500. 0'e
Sen. George (D-Ga), senior Sen.
ate Democrat among the conferees
predicted the administration womId
make every effort to get at leas,
part OF the House relief restored
because they think this il The
most vital part of the bill"
George told a reporter he he.
lieved a likely outcome was restor.
alton OF the 5 per cent credit alons
with the $50 exclusion.
Democrats charged in the debate
the section would be of benef;,
mainly to the wealthy. Republicans
replied that it was needed stimu.
lus to get more capital for busi.
ness through stock sales. and also
would partially end what thev
termed double taxation resuItino
from taxes on both corporate prcl
TITS and on the income Of stock.
holders who are paid thse profits
Sen. Humphrey -Minn). one d
those who attacked the section
said in an interview the whole fisht
over the bill would be renewed !,
the conferees restore much of the
divided income benefit.
He said ne was sure 20 or Is sen.
ators would join him in such .
battle which could jeopardize
chances for the bill if the con.
ference report comes I'D in the
waning days OF the session. Con.
gress expects to adjourn abou.
Aug. /.
Most Of the tax cuts in the bill
would take effect this year ana