Show MAY TRIPLE TAX ON INCOMES OF CORPORATIONS 1 I Committee Discusses Proposal Pro Pro- I to Raise Levy F From 6 to 18 Per Pcr Cent Washington ashin ton Jul July 23 An An IS 18 per percent cent normal ta tax on the time net Income of corporations cor con with with willi provision pro however that only 1 12 per cent shall be levied on the thc Income distributed to shareholders shareholders share share- share share-I holders was tentatively teJ agreed upon to today toay a b by the time House ways an and means committee Members of ot the committee commit commit- I tee tec believe that the lower rate on earnings ennui earn ings distributed will wili have a tendency to break up large corporate surpluses I I I I and force the money mOlle out where It can be reached U by the tho surtax on individual ual ullI Incomes The present normal In Income Income In- In come conic tax on corporations is 6 G per emit Chairman Challman n l of oC the committee after aftel today's session made this statement state state- ment meat tinder discussion discussion discus discus- The rime committee had sion tolia today the income tax on corporations corporations corporations corpora corpora- discussing practical all da day the rates rales i iThe The following rates w were re rc suggested and land discussed discussed- Twenty I 1 Twenty per Ter cent on the tIme net In Income Income In In- come of ot corporations with a proviso plo o that on the thc amount distributed to shareholders ers orl only only 10 Pc per cent should be ue levied 2 2 Eighteen p per Oil cent the net the in In Income come of or corporations with a proviso pro that on tile tic amount distributed to shareholders shareholders' omil only I 1 12 per cent should be ue levied i Pint The Time followIng also suggested suggested sug sug- r I A 1 A flat flitt rate of ID per cent on the thenet thenet oC ii net nel Income andA and f 2 A 2 A flat rale o of 1 12 per cc cent lt on the thenet thenet net Income Willie While no rio definite decision w wr was r reached acl c It seemed that pint a majority of oC the thc committee favored fa th the proposition ui 1 L e I JO 10 0 Iel I 1111 1 Ilie ue un II L inhume with the reduction to 1 12 per cent on the amount dl distributed to e ers rs The rhe propos proposed lt arrangement of the tile normal Income mc tax laX on im corporations Is In iii line with treasury department views views' and InrI Is a nc uie v n pirn in federal ta taxation atlon The Tho proposal resulted rr from rt testimony n at committee hearings that many corporations cor cot ons kC keep 1 a n certain portion ot of their annual 1 in n time tho business InI in instead instead In- In stead of oc distributing the tue entire profits to Lo stockholders r who ho uld have tiPa to ti I Pa Ila pay a J- J JI JL-JI I it It |