Salt Lake Telegram | 1936-05-15 | Page 1 | Senators Seek Tax Law Teeth

SENATORS SEEK TAX LAW TEETH Substitute Proposals Under Discussion W WASHINGTON ASHL May 15 UP The UP-The The The senate finance committee closeted with treasury tax experts today discussed discussed discussed dis dis- dis- dis cussed the possibility of Inserting teeth in present law to enable the government to force corporations corporations corporations corpora corpora- to pay payout out unreasonable sur sur- pluses On half A II dozen substitute plans for tor a tax on corporations which would depart drastically from the bill approved by th the house the committee rea reached hed no agreement Shul Study Am Amendments Amendments' I The exploration of possibilities of amending and strengthening the existing corporate surplus law began began began be be- gan after atter the committee received further information as to how large corporations might be e affected by bythe bythe the house version of ot the new tax program Chairman Harrison D. D Miss said tre treasury Sury experts were studying the problem but that he thought It would be difficult to improve the present statute The chairman said th the treasury submitted figures to show that whereas corporations with statutory n not net t in income ome of more than paid in taxes in 1934 had the house corp corporate rate tax lax plan been law Jaw they would have paid 4 Lump Estimates Harrison added however that the figure for tho the tax under the new bill was reached on the assumption that all corporations would pay the highest rate of 41 per cent provided provIded provided pro pro- vided in the scheme for levies based on on undistributed earnings The chairman said also that the calculations did not take into account account account ac ac- count the fa fact t th that the bill would place flat Jat rates tes on some corporations corporations corpora corpora- such suh as a 22 per pcr cent ent levy on earnings required to pay exist existing ns deb debts