Show VINSON TELLS I CHANGES IN TAX TAXi i n- n WASHINGTON Jan 7 UP Rep UP-Rep- Representative Rep Rep- Vinson D. D Ky whose house tax subcommittee has worked for months to draft a fair faIrs schedule sched ached ule for business taxation said to to- day I 1 think we have succeeded We yVe started ou out with the Idea of giving relief to small mall corporations 2 and to hardship and inequity cases he said I think well we'll have a very splendid bill I Of course it I wont won't meet with the approval of those urging corporate devices device for evading taxes The committee finished it Its proposals proposals pro- pro p. p yesterday They cover the Whole federal tax structure and administration administration administration ad- ad ministration leaders hope to enact them in a few weeks 0 b. b The major recommendations pro- pro j t. t vide for complete overhauling of the undistributed profits and capital I gains gaina taxes These levies have borne most of the criticisms that tax statUtes statutes statutes stat- stat utes have hurt business s- s s Would Grant Relief Belief v Some corporations would pay nore taxes Vinson said But In genera general general gen gen- era eral he added the subcommittees subcommittee's new flew ew tax system would grant relief against high rates rate tc to 89 99 tt per cent s of of of the taxpaying corpora corpora- bons Changes extending benefits to most niost corporations ns would not no apply to 5 or 1000 firms which Vinson described as controlled by a few individuals in in- and used by them as a deI deVice device de- de I vice for evading payment of high jf- jf surtaxes on their personal incomes Dividends to which the surtaxes would apply are not paid by the corporations he said and profits M are re piled up in them and subjected t to a lower corporate tax rate k Deduction Option T Under the subcommittees subcommittee's plan z they would pay the he 16 to 20 per cent undistributed taxes applicable to all companies with relatively large in- in comes From the net income remainIng remaining remain- remain o ing after payment of those taxes they could deduct or 30 SO per percent cent whichever was larger On the theo theco co o balance they would pay a flat 20 per cent rate That would make their payments 4 only slightly less than hose under I I the present system of an 8 to 15 per cent normal corporate income t tax and a 7 to 27 per cent undistributed undistributed undistributed profits tax The tax revision program should comply Vinson said with President Roosevelt's demand that it result w In no substantial reduction in reve reve- nue flue The prospective yield however has not been computed definitely Z Changes Agreed On Among the changes agreed on during the subcommittees subcommittee's deliberations deliberations delibera- delibera were these That corpor corporations with incomes of or less should pay an income tax of ot 12 to 16 per cent the cent the highest highest highest high- high est effective rate being per percent cent cent and and no undistributed profits t tax J z That the capital gains tax taC be bev v smoothed out with the smallest portion of gains tax taxable bleat at the end of ot five instead of 10 years' years retention 61 of capital assets and provision being made for a year one carryover of ot v capital losses to be used to offset 2 gains That exemptions from estate and gift taxes be lowered That about of excise j ja and nuisance taxes be repealed t J That the bureau of ot internal revenues revenue's reve revs nue's flues advance opinions on tax liability lia- lia for specific transactions be bes s a. a m made de binding when accepted by a taxpayer |