$200,000,000 More

Almost ready for the House last week was a new revenue bill to collect upwards of $200,000,000 in additional taxes. Secretary of the Treasury Morgenthau and the Ways & Means Committee spent long hours together putting the final touches to its provisions. As drawn the new rates will first apply to 1934 income. Prime provisions of the bill:

P: Considerable juggling with normal and surtax rates which will alter tax return arithmetic but make little cash difference to taxpayers. Taxes will be a trifle lower for married men, a trifle higher for single persons.

P: Restoration of a 10% tax allowance on net earned income up to $8,000.

P: A requirement that in States which have community property laws (Texas, New Mexico, California, Idaho, Louisiana, Washington, Nevada, Arizona) husband and wife must make a joint return on their community property.

P: A sliding scale of taxes on capital gains (100% of gains on property sold within one year of purchase will be taxable as income, 80% of gains on property sold within two years, 60% of gains on property sold after two and within five years, 40% of gains on property sold after five years).

P:Income taxes paid to foreign countries to be only 50% deductible from similar taxes due the U. S., instead of allowing full deduction as formerly.

P: Power for the President to up income taxes 50% on foreign corporations whose native countries impose discriminating taxes on U. S. companies. Purpose: to stop France from taxing U. S. companies doing business there not only on their profits in France but on all their profits.

P: A tax of 5-c- a pound on cocoanut and sesame oil, partly for revenue, partly as a sop to U. S. lard and cottonseed producers.

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