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Show State, City Worker Tax Plan Dropped House Group Decides Against Income Levy on Public Employes WASHINGTON, Dec. 8 (AP) A house tax subcommittee aban-I aban-I doned today proposals for federal taxation of income of state and municipal employes and interest on federal, state and municipal securities now tax exempt. "The subcommittee agreed." said Chairman Vinson (D.. Ky ). "that in view of the supreme court decision on Monday no recommendation would be made along either line." The court decision held Washington Washing-ton and West Virginia might tax gross income received by contractors contrac-tors for building locks and dams for the federal government. Some committeemen said the decision de-cision had "thrown cold water" on the idea state and municipal employes em-ployes might be subjected to federal tax and that tax-exempt interest might be tapped for revenue. Congress continued debate on farm legislation. The house approved tentatively, (Continue! on Pe Two) (Column One I TAX REVISION PLANDROPPED (Continued from Pas On) M to 20. a farm bill amendment by Representative Lucas (D., 111.) to provide for mandatory loans to corn growers. The measure authorizes Secretary Wallace and the Commodity Credit corporation to make loans at their cotton and corn. In the senate. Republican Leader ' McJfary of Oregon sought unsuccessfully unsuc-cessfully to remove from the senate sen-ate farm bill a provision giving the secretary of agriculture power to require corn and wheat farmers tol tore up to 20 per cent of their current cur-rent crops. The Oregon senator said it was Unfair to require corn and wheat farmers to do this because of the "heavy storage charges" and possibility possi-bility of a "1100 penalty fine" if they disobeyed. Before the senate voted McNsry down. Senator Pope (D.. Idaho) replied re-plied that the section was part of tha "ever-normal granary" theory of holding back surplus crops from market. He added that he planned on removing, or reviling, the tioo penalty. Opposes Plaa Sweeping disapproval of the whole theory of crop reduction as proposed In tha "ever-normal granary" gran-ary" program came from Senator O'Mahoney (D.. Wyo ). "Until we find aome way of putting put-ting tha Industrial population to work at something better than security se-curity wages, then every farm plan will fall." tha western senator said. Ha added that what was needed was "tha stimulation of consumo- tion, not the reduction of marketing market-ing and production." Tb tiaup between the welfare of farmers and Industrial laborers cam up also In the house debate. Representative Dies (D., Texas) aid tsvac, If the bouse planned to pass a wage-hour bill, it also should approve an amendment by Representative Rep-resentative Patman D Texas) to compel government payment of parity prices on wheat, corn, cotton, cot-ton, tobacco and rice. Give Views "If w don't." he said, "we'll tel the farmer, "We can't help you because be-cause It costs too much, but we did fix It so that you pay twice as much for the commodities you buy.' " Although debate continued to drag, administration leaders forecast fore-cast the bill would win approval by both chambers this week. They were encouraged by two test votes. 1. The house turned down, to to H, a proposal to eliminate marketing mar-keting quotas for cotton. Leaders predicted they could defeat a similar sim-ilar attempt to remove provisions lor compulsory control of corn. 1. Tha senate defeated, 61 to 15, an amendment by Republican Leader McNsry to limit tha farm program's operation to three years. Senate leaders said the greatest remaining danger would be a motion mo-tion to send the bill back to committee. com-mittee. They declared, however, count showed they could defeat it by a margin of 19 or 30 votes. Foes of the kill disputed this figure. They aaid they had almost enough votes pledged to send back tha measure, and that when the rolloall cam they might have enough. Forecasts of a final vote this week also were challenged by some f the measure's critics, who noted the senate had reached only page It of the 17-page measure In consideration con-sideration of committee amendments. amend-ments. House leaders wera . In better hap for completing the legislation legisla-tion this week, although they had abandoned efforts to limit debate. They already bad disposed tentatively tenta-tively of soms of the major Issues that still must be debated In the senate. Even should Waders succeed In passing the farm bills In both house and senate this week, they would bav no assurance of getting get-ting tb legislation to the White House this session. Many funda-- funda-- mental differences will have to be compromised between tb house and senat versions. The wage-hour bill will coma up in tb house next Monday, but Its chance for final action were considered con-sidered even slighter, because by th tim a vote la taken only a week f th session will be left. Southern senators expressed opposition op-position to the proposal of tha house boor committee for putting administration admin-istration of the measure under the labor department If the house should agree with Us committee, then would be an argument with th senate, which voted to have an independent board of five members administer the law. Chairman Thomas CD. Utah) of the senate labor committee aaid he personally favored supervision by the labor department |
