Salt Lake Telegram | 1927-03-11 | Page 24 | Amendment to Halt Tax Dodging 'Difficult Matter'

Amendment en men to o at Tax a x Dodging o In t Matter a tel WASHINGTON March 11 AP amendment of the income in- in n- n come tax law to restrict the he creation crea- crea cr a- a tion of corporations for the purpose or of permitting stockholders to escape surtaxes presents a very difficult problem and a solution Is by no means certain Chairman Green or of orthe the house wa ways s and means committee committee commit commit- tee declared today Commenting on the recommendation tion ot of L. L II Parker investigator for forthe the joint tax committee of congress congress con con- gress the law b be tightened inthis In Inthis I this respect Mr Green said the difficulty was In findIng a solution which will be practical and not te te suIt in und undue e hardship on the part or of new and small corporations Mr 11 Green saId the instance 1 e cited by Mr Ir Parker of a corporation whose stock Is owned entirely b by byone one family and whose net earnIngs from 1922 to 1925 were of which only was distributed distributed dis- dis as dividends was well welI known to congress I He added however that while thIs corporation has In one sense been the mediUm of evasion of surtaxes surtaxes sur- sur taxes by members ot of the family It I has generally been considered that this was a legal evasion n. n It was well understood by the ways and means committee at the time of the last revision of the revenue law he asserted that this I company was not considered by the bureau of internal revenue as beIng subject to that section of of- the law but no change was made whIch affected at- at it It The name of the corporation was was kept secret in the Parker report which Has lias not b been en acted upon by bythe bythe the joint tax committee