Evening star. [volume] (Washington, D.C.) 1854-1972, 1954-07-15
Tax Bill Conferees
Clear New Hurdle on
Depletion Allowances

i -
Conferees on the big tax re-
vision bill cleared another hurdle
today when House managers ac-
copied Senate additions to the
list of minerals entitled to de-
pletion allowances.
The Senate approved a % per
cent rate of depletion instead Of
IS per cent on uranium. It also
established new group Of stra-
tegic materials on which %
per cent allowance would apply
on production within the United
States. Lower rates would ap-
ply to production overseas.
When the conferees recessed
for lunch they were debating a
lower tax rate for foreign sub
salaries of American corpora
tons.
There was a possibility the
conferees might settle this after
noon all of the remaining diff
ferences except the main con-
troversyr over whether to elimi-
nate some of the double tax
alton on dividends.
Four Cuts Approved.
In its decisions yesterday
subject to possible reversal later
the conference committee ap-
proved four tax cuts totaling
about SAT- million the first year,
and a fifth on which tax saw
ings figures were not available.
That compares with $485 mil
lion in reductions in the House
bill and 1854 million in reduc-
tons in the Senate bill on these
same points:
Retirement Income Both
houses had agreed on a plan to
exempt from taxes the first
$1,000 of retirement income for
retired persons over IS, a saw
ing of up to $240 per person a
year. The Senate added a pro-
vision that public employees
school teachers, policemen and
other Government workers
could get the special tax cut
even If they retired before age
IS. The committee approved the
Senate version, with tax re-
duction of Sal million COM
pared with $125 millions in the
House bill.
Single Heads of Households
The House approved a plan to
give single heads of households
the full saving married couples
now get by splitting their income
for tax purposes. The plan
would have saved about $50 mil
lion a year for about 100000
taxpayers. The Senate knocked
out the provision entirely on
grounds that wealthy persons
would get most of the benefits.
The conference committee re-
stored tax cut of only about
81 million-providing that for
two years only after a husband
or wife died the widow or wild
over could continue to split in
come for tax purposes.
Senate Plan on Depreciation.
Depreciation-The House ap-
proved a far-reaching plan for
more rapid tax deductions for
depreciation of new plants and
!, equipment. for a saving of $500
million the first year and much
more over the next few years.
The Senate made the plan even
, broader and more liberal, for a
saving of 1923 million the first
year. The conference committee
approved the Senate version.
Installment Credit-The House
provided an income tax deduc-
: ton of up to 6 per cent of in
stallment purchases, to cover
actual interest or carrying
charges. The deduction is al
lowed now only if the interest or
carrying charge is specified sep
arately in the bill for the pur-
chase. The Senate eliminated
the House provision. The con-
ference committee restored it, for
an annual saving of about $40
million.
Sick Employees Benefits.
Sick Benefits-The committee
3 agreed on compromise plan for
taxation of wages paid to en-
ployes under sickness or accident
benefit plans. The Senate had
adopted a sweeping provision
under which virtually all such
wages up to 500 a week would
. be tax-exempt. The House plan
included many restrictions which
would have denied the exemp-
ton to millions of workers.
Under the compromise, wages up
to 500 would be exempt after
seven days Of absence due to
sickness or accidental injury.
They would be exempt for the
first seven days only if (a) sick
i, ness put the worker in a hospital
for at least one day of the seven
day waiting period, or CD the
absence was caused by accidental
injury.