Salt Lake Telegram | 1938-01-21 | Page 2 | Battle Flares over Tax Law

T BA BATTLE FLARES OVER OVERTAX TAX LAW LAV WASHINGTON Jan 21 INS INSA INSA INS INS- A violent conflict over the administrations administration's administrations administration's administrations administration's admin admin- tax policy was wag precIpitated precipitated at the house ways and means committee hearing bearing today by E. E H. H Lane jane president of the Lane Cedar Chest company of Alta Vista Va The conflict embroiled Democratic members with Representative Lamneck Lamneck Lamneck Lam- Lam neck D. D Ohio assailing a damned poor tax law at one point Lane assailed a provision in the subcommittees subcommittee's tax report placing a penalty on family or closely held corporations earning more than a year and distributing less than han 60 per cent of profits in dividends dividends divi lends His company he said which has earned arned as high as a year escaped part of the undistributed profits tax by issuing notes to stockholders instead of declaring dividends Id like to know interjected Representative Crowther R. R N N. Y how closely this resembles tax evasion Chairman Vinson D. D Ky of the subcommittee who had explained that hat this method could be used to reduce taxes flared up at Crowe Crom- ther's hers question If it is a method of evasion it itis itis its is s a method which was set out in report of senate and house committees committees committees com com- he said It is not evasion evasion evasion eva eva- sion because the law set out the method Representative Lamneck Interrupted interrupted interrupted inter Inter- to say that the Lane company company com com- pany any paid over 14 per cent taxes last ast year and then had to pay 6 per cent interest on the notes is issued issued issued is- is sued to stockholders to reduce the undistributed profits tax To my way of thinking it is a damned poor law that permits that said Lamneck Lane who said he be was a lifelong Democrat aroused committee mem- mem members members bers sers by assailing administration policies We cant can't understand what the political and economic philosophy of this administration is he said Perhaps the administration floes does but jut we doubt it If the administration wants to break up family corporations it has chosen a good method in this tax propos proposal at