Show ROOSEVELT CHALLENGES PROFITS TAX OPPONENTS President Asks Bill Conferees Conferees' To Retain Levy Nation Nations Chief Bares Oil on Measure l in Letter Letter- to Harrison Doughton Senator Senator- to Fight Move President UP-President President Roosevelt in a WASHINGTON April 13 UP sharp challenge to his tax opponents today called upon congressional congressional congress congress- J ional tax confer conferees es to retain the skeleton of the undistributed tax and u eliminate senate modifications ons of the capital x i gains and losses levy The proposal made in a letter to Chairman Pat Harrison of the senate finance committee and Chairman Robert L. L Doughton of the tho house ways was and means committee com cornS J immediately ar aroused opposition opposition op- op j l position among conservative aUte con- con f r. r gressmen Harrison Harrlson who sponsored both changes objected to o by the president r dent Immediately defied Mr Ir Roosevelt Roosevelt Roosevelt Roose Roose- velt and m made plain lain that he would fight for adoption of ot the senate version of ot the bill bilI Highly Desirable Mr Roosevelt said that these proposals proposals pro pro- would help not hurt business business business busi busi- ness and asserted that their retention re re- re was highly desirable Inasmuch inasmuch inasmuch inas Inas- much as they symbolize a fundamental fundamental funda funda- mental principle of ot taxation v The re repeal eal of ot the tho undistributed profits tax and the reduction of ot the tax on gains to a fraction fraction frac frac- rac- rac tion of the tax on other forms of in income income income in- in come said Mr Roosevelt strike at the root of ot fundamental principles principles ples pies of ot taxation In his letter to Harrison and Doughton Mr Roosevelt stated his tax views bluntly He characterized the elimination of ot the undistributed profits tax as contrary to the spirit of ot the principle that every citizen should pay taxes in a ac accordance with his means He stated that the elimination would be particularly undesirable at this time He characterized the senate modification of the capital gains and losses levy as containing no fairness He said that it meant taxing at far lower rates the profits on the capital of the speculator than would be levied on salaries and income of merchants Backs acks House Bill BilI Thus the president placed his hi Influence in influence influence in- in fluence squarely behind the hous house tax bill bilI and in opposition to the senate version which reflected Harrison's Harrisons Harrisons Harrison's Harrisons Harrison's Har Har- rison's views Harrison sponsored the changes as an aid to business The tax revision me measure is now nov in conference to blend the differ differ- After receiving Mr Roosevelt's letter Jetter Harrison reiterated his be belief belief belief be- be I lief that the house bill should be boo changed He said sal that he be would fight for the senate billI billI bill bilI I r am sure that the whole desire and aim of all the conferees is to work out a bill which will offer en encouragement encouragement en- en eni i to business Harrison said I HI believe that the repealing J of f the undistributed profits tax and modification of the capital gains 1 J tax such as adopted by the senate will help business 1 Gives Views The president noted the advantages advantages of ot encouraging economic re recovery recovery recovery re- re covery but said Desirable as it is to foster busness busIness business busi bus ness recovery we should not do so soby soby soby by creating injustices in the tax system particularly Injustices at atthe atthe the expense of the man who earns his income injustices Income injustices to the advantage advantage ad advantage ad- ad vantage of the man mah who does not nol Of the undistributed profits tax Mr Roosevelt said charter sets up upa The corporate a Chinese wall which prevents the earnings of the corporation fro from I being taxed to the shareholders who y o Continued on Page Pace Two Column Two PRESIDENT AIRS TAX BILL VIEWS Continued from Page One really own them unless those earnings earnings earn earn- ings are actually distributed to the shareholders In the form of dividends divi divi- The president suggested that the elimination profits levy aided ta tax avoidance A Available Device With no undistributed profits tax he said the avoidance of surtaxes surtaxes sur sur- sur taxes through the use of the corporation corporation corporation corpo corpo- ration becomes a readily available device for those persons in the higher surtax brackets who ho seek legally to keep their net personal incomes down for tax paying purposes purposes purposes pur pur- poses and to hide their actual profits by leaving them In the corporations corporations corporations cor cor- cor- cor they own Doughton Said that he had known all along that the president favored favored fa fa- a- a the house provisions on the undistributed profits profile and capital gains levies He said that he considered considered considered con con- it the presidents president's prerogative prerogative tive to make his views known to the conferees I 1 do not think that the situation situation situation situa situa- tion will militate in any way against obtaining an agreement Doughton Doughton Doughton Dough- Dough ton said I think that we will beable be beable beable able to work out a good bill Doughton said that sponsors of the undistributed profits tax argued that the levy was unpopular but failed to show that it was unsound Unsound unsound un sound |