Evening star. [volume] (Washington, D.C.) 1854-1972, 1954-07-29
Senate G. 0. P. Hopes
For Vote Today on
Bio Tax Revision Bill
BY ]. A. o'Leury

HepuDllcan Leaders nope the
Senate will take the final step
/ today to send to President
Eisenhower the big tax revision
bill. which gives selected groups
Of individuals and corporations
another $1.3 billion of tax re-
lief.
Senate Democrats are prepar-
ing to make last stand against
the relief for dividend income
in the conference report, but
Republican floor managers are
confident the Senate will not
send the bill back to the con-
ference committee at this late
stage OF the session.
i Representative Cooper, Demo-
crat. Of Tennessee, failed when
he tried to- persuade the House
yesterday to send the bill back
to conference for further
changes In the dividend compro-
mise. The vote against him was
227 to 1863.
With that issue settled, the
House approved the compromise
version of the bill 3l5 to IT.
$50 Exemption Favored.
Both Houses are on record in
favor OF exempting the first $50
OF dividend income, but the con-
ference report also allows stock
holders a tax credit of 4 per
cent against the remainder of
dividend income.
Senators Johnson, of Colorado,
Douglas, of Illinois, and several
other Democrats are expected
to take the floor against the 4
per cent credit. It was not GER
tain, however, whether they will
call for a separate vote to in
struct the conferees to change
that provision.
The fact that Senator George
OF Georgia, ranking Democrat
on the Finance Committee. is
supporting the compromise win
make 1t difficult for the op-
ponents Of the dividend pro-
visions to beat the bill in its
present form. Senator George is
q leading authority on taxes and
is influential with many of his
colleagues.
AS originally. passed by the
House, the bill carried a much
more generous dividend relief
provision. For the first year it
allowed a $50 exemption with a
5 per cent tax credit on the re-
mainder. Thereafter, it would
have allowed a 500 exemption
and 10 per cent credit on the
remainder.
The Senate dropped every
thing but the exemption Of the
first $50.
Complete Revision.
This bill OF 1000 pages is the
nrst comprehensive revision of
the tax code in more than half
century. and is designed to re-
move inequities against both in
dlvlduals and corporations. The
SIS billion reduction is a cur,
rent fiscal year estimate, and
brings to more than 81 billion
the total Of tax relief which has
taken effect since last January
For corporations the bill ex-
tends the present 50 per cent
income tax rate until next April
out gives business new depre-
citation formula designed to in
crease Industrial expansion. The
new formula permits more rand
depreciation of new plant and
equipment in the early years of
its use.
For individuals the bill liber.
Allies deduction of medical ex-
penses. gives working mothers an
allowance for babysitters and
permits all retired persons to
deduct for tax purposes the first
$1,000 OF retirement income.
Parents may continue to claim a
5000 exemption for children who
earn more than $500 a year pro-
vfded they furnish more than
half OF the child's support.
The date for filing annual in
come tax returns is changed from
March Is to April Is.