| Show Treasury Recommends Recon mends Tax Of 33 h Per Cent on Surplus WASHINGTON March 4 UP UP A A t tax averaging 33 per c cent centon centon nt on undistributed corporation profits was recommended to congress by the treasury ry today as a n means moans of raising of the in new revenue to restore restore the federal budget toward balance Treasury fiscal experts appearing before the tho house house- w ways yS and means committee in the face faco of protest against the tax suggestions made by President Roosevelt estimated the levy on undivided corporation profits would raise to annually Tho The tax would range from 27 to 40 per cent under the treasury rec rec- rec- rec Submission of at the treasury data coincided with prediction by Speaker Speak Speak- er Joseph JosephW W. W Byrns that tho the house would accept the presidents president's suggestion suggestion suggestion sug sug- that revenue needed to fi finance finance U- U nance the farm fann program and added bonus costs be raised by revising and extending extending- corporation taxes Meanwhile Republicans started a anew anew new now economy drive which they contended con con- tended would eliminate at least part part of ot the tho need for tor new taxes by re reducing reducing reducing re- re government expenditures The treasury data were submitted at an executive session of tho ways the ways and means menns subcommittee on taxation taxation taxation taxa taxa- tion entrusted entrusted- with the tho task of recommending recommending- to the full tun committee a 11 tentative draft of tile the legislation Silent on Exemptions Chairman Samuel B. B Hill said the treasury proposals did not call caU for Continued on Page Two i Fly Fir NEW TAX TUX PLAN PUN CAUSES FIGHT FIG T Continued from Page Pare One any ny exemptions of part of oC corpora 4 on reserves He said l it was the general Id af that that- hat b banks lne In insurance r r J e e- eo bm- bm o 1 panics be ex exempt t from th the reachIng far corporate tax proposal p made by the president in his hh jnes- jnes message mes- mes sage age to congress yesterday Hill Hilt estimated the tho proposed tax tx rate ate in the treasury's opinion would not prevent corporations from rom building up reserves He asserted if companies held back jack 50 per cent of their net earnIngs earnings earn earn- Ings tIey ey would not have to pay any ny higher taxes than at present Would Would Repeal Repeal Taxes TaxEs' s' s The rhe present corporate levies the income tax the excess profits tax and capital capital stock tax w would uld be repe repealed re- re pe pealed caled led under the tho pr presidents president's proposaL pro- pro osal Representative Is Isaac ac Bacharach R. R N. N J. J 3 subcommittee member predIcted that such a a. tax rate Voni von go go through It was wai v indicated that thit committee ommIttee members subjected tho the treasury group to considerable questioning asto as aso asto to o justification f for t tho the r rates Minority Leader Bertrand H H H. R. R N. N Y asserted th the presidents president's den dents dent's s tax program m did no not clarify the tangled budget situation but butIs butIs buts Is s the official end o of the breathing spell pell for for forr business business' ss' ss The economy drive was started by y Representative se Harold Knutson R. R Minn J who proposed that the government save by abandoning useless projects and thus hus obviate necessity for new taxes axes Senator Arthur Vanden- Vanden berg erg R. R Mich had urged similar action in the senate The subcommittee executive see Fes- ions are expected to continue for fora a week House Resolution I Knutson's attack on the proposed taxes axes took tho the form torm of ot a a. house resolution designed design d to launch an Immediate paring of oC federal ex- ex s t to bring pring them theIl within the of at present income The resolution would direct the house hous louse committee on expenditures to o report within a few lew wee weeks s on means of cutting down regular government departments a and n d emergency agencies The Thel presidents president's s 's suggestion In- In In Including eluding a a. a gr graduated levy leyy on undivided undivided undivided vided surpluses will vili be considered by the subcommittee but there was no assurance it would be followed Members of the tho full ways and means committee headed by Chairman Chairman Chairman Chair Chair- man Robert L. L said they were prepared to give serious consideration con con- to other methods of raising the new revenue needed needed- to meet extra budget costs cost resulting of passage of the soldiers' soldiers bonus and the supreme court invalidation of at tho the AAA The presidents president's s suggestions ns for raising the money were divided into nto permanent p and temporary te por ry programs The perm permanent nent program program pro- pro gram would provide a year to finance the farm larm program and md for far nine years years' to finance amortization of the 2 bonus a total of ot 6 0 Year 3 Fro Program am The temporary program calls cans for to reimburse the treasury treasury treasury treas treas- ury f for r los losses es of revenue nue sustained with the passing of ofA A A A-A A A A- processIng process process- Ing ng taxes This his would be spread spreadS S over over three years with to tobe tobe tobo be bo raised each year |
