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A tax
ncanm
two*** Profit* Tax - Iho proaont atotuto, falling far afcorte of tho infcoation
atatod In tbo ?raoici«iitTa
of July 1, 19liOf Ho m that a fair do not
f*o»
tho oaorifiooo of tho many* in tho task of awAng for national dofomre, ahould bo
drftotionlly rotiood. Labor om not noil U aafeod to mdorato it* donaado If ozaployora
aro poradttod to retold h\*go profit** After paying taxo* roflootltig inoroaoaa already
atado and in proopoot*
individual* will havo l*aa »onoy loft than thoy had boforo
tho dofonao program got undor va^i a»a»fcilo* may corporation* i n jaaking isora isoaay*
own oftor taxoa# thin thoy owr »ado boforo* In oonfcraxt to individual oarnioga,
thooo oorpormto oarning* o*oapo tho f u l l foroo of tho individual ourtaxo* booanao thoy
nay bo rotninod without ponalty* to offootivo oxoo** profits tax i« tho boot w*y to
ttata* thiffi btftf thoir fidf nharo of tho tax load*
Spooiflo Proposal * Fix tho oxoo** profita baao at sot noro thou 10 par oont
or looo than b par oom on imroatod capital, tho oxaot fi&uro within thoao linita to
bo dotor&dnod by p«at oarnine* oxparionoo* &otaiii tho proaont apooiflo oxsanptlon of
#$*OGO* On oxooa* profita o*w thio oxaoption* loty ratoa oa follow* i 25 por oont on
tho firot §20*0001 $Q por oont on tho noxt $25*OO0» 7$ por cant on tho roaoiodor of
oxeoa*
ftotain
tho pretrial on* of tho preoont 1asr pyridine for apooial troatSpooialPofonio tax on Oorpy&to Inooeaa ~ Salting tho rato of noroal oorporato
inoo&o toxirouia inereaao "tttfc1 vaiuo of tfi* 'tax bumption privil0£0 on ineom fran o w
|20 billion of onbatanding Fod*r*l Gcvorrawnt ooouritioa* In ordor to lovy upon ouoh
inowso^ o^oyjUtg iswanlty f ^ n nomal tax but not f l r « mrtaso** o fair aharo of tho
Inc^oood tax bisrdoasui vhioh tho oowaxnlty ot lai^o n i l ! bo oallod ^ipon to p*y0 o
dofont* aurtan m oorporoto latton* of 6 por oont# In addition to tho prooont soisil
roto of Sli por oont» ia
foracmal Inoow tto £bia io tio x»at o^uita&l* of all taxoa and ahould bo
tho baoi^ao or m t tak otrnotoro# Vp to mwt howoimrf 00 h»o fallod to laaho
«a f u l l uao of
poroonal inoosao tan 00 other damorntlo oountrioo here dono* with
tho roiult tha^ i t yioldo ooly about 3D por oont of total Fodoml roronuo* IVoaauroa
m Coogroational C<mittooa havo roauliod in an ino^oo tax at&tuto ^ot thro^h vith
inoonaiatonoioa^ is^uitioa and ijsamnltioa for s&nority groupa of ta^agforo*
Specific fropoaal • (n) Tax tto inoomo of huab^do and ^iiroa aa o aii^lo
omoi.. T h l a V i ^ ^
filing oaporato ratnma io o ta^moidanoo dovioo thot in
praotioo io ^aluaMLo «aly to ooolthy oouploa^ and praotionlly all iiealtl^ oo**ploa maSco
nao of l i t Profoaaional aorviooo of n hi£h ordor i t
GcmrMant^a diapoaal aro ado«
^nato to m m tho lo&al obataoloo to thia propoool*
(b) lamp tho pMoont poroonal oxosption of $2t000 for aarriod poraono to
9Sho rotoooo thm obtidnodl from tho bottor poid iaa^o«Poarnaro# t^othar i&th
oxiatiag and ^ropoaod oonoaqptlon taxoa paid by thio group* * i l l go far toward making
£00d poaaiblo loaaoo in oxoooa proflto rotonuo i f eofornaootal prtoo^ontrol* in
Unotion with rioi% * i r a t o a # tfMold raatriot tho erooth of profit**
(o) Elixdnoto tbo jprooont &*QQ0 onrtax oxaeaptios^ but oontiiftio to ollor
m fropossd abort) »ad «ar»dlt tor 4«p<Mu£«at!«
f«r «rt«x |uypo*«««' €ias« an UwnNMHi Sa tte neraaX tax would loor**** tb®
«f
r*tm«
i^Hirdi w l i i a of surtax r«t««
9*£>mm Tkx9 mtobias to 10
at ^niMat ««b*dal»d r*te«, tiuntld In «lialttB.t»d« 2b»
Batata sad Gift Jam* ~ Ga Jim© 1% 1935$ tha rronidort caid "Iho
maiomr^uoa to {proration of vast fortvuaaa by *dXlt ioharitanoo or g i f t , Is not
*onttieta£t with the idoale aad aantis>a«fca of tha Jte*riea& pooplo* Such irshariiad
aoa&a&ia pcmw ia aa iaco&oiatoat irtth tha idoalo of thio 0ȣoratic>& as inherited
poXitical po^or tma inooaaiotont with tha IdaaXo of th* gaaaratioa i&Xch aatabXUhad our
gowr»eist#* tha teak of bribing 1mr listo ooufomlty with $*os>uXfcr IdoaX*,fce&unlu tho
S&vo&m Aot of X9J5* ought to ba fiai«hod xtm*
2U K*tabXi*h «rtisgXaoohodtiXo of ratoo appXic&bla to the cusaul^tlvo iot«&
of gifts during Xifa plus ootato jweaiag at doath* Xinter prownt praotico, cijtt*
Jaot to tax la tho lowet braokats of tho gift
aaa bo uaad a* a isoum of &voidifc£
t«*aa in tha hi&haat brackets of tho aatata tax* Grout asoutsulation* of waXth ciss be
tra&cs&ittad
gift
waXl ** by ba?ju$*t# aod ft oaaaiotaafe pubXio jrcXicy -srould ttx
both typo* of trasafor at tho umm afiootiva rata** £ai*a tho no* waoduly lov rRtea
appllsabla to aat&taa im&ar £10 million* tho propowd *obadula of rata* In ohown In
Apjaittdix A*
£# For tho praaa&t aaimptioaa of 5^0*000 under tho c i f t tiat, ^04000 £onoraX
aador th* aatata ta*, axsd *i$t000 i£&urai&* ucdor tho aatata tost
a totaX of £X2D*CQ0
aubetituta a $i»£l* aa&asiptl<ra of £25,000*
3* Sroadaa tha lagal consapta of *&tft*w and *tranafar at daath" *o that tho
oatata tax viXX affoctiwXy roaoh aXX trarusfora of praporty that transit waXth froa
om sanoratiafc to tho na*t« transfers f w XXfo tonani to rmmiwi&r&m
are one tho
iridoXy uaad davioa* for avoiding «tata tas*
Ltsait tho right ta sse&a
gifta and bac^iaata to oduoatlouid tmd
ahariiabla inatitutiona althar by Xisiiting tho w^nmt of auoh traa«ftir» or by roqulring
tha gift or beguoat to bo oortifiod as truXy la ^o jmbXic intor^at by quaXiflod export
oflniosit Suoh traMfare aftan ^oraXy refloat tho ^lao of tho donor a^i oarro no
ft*X pubXio
axaiao ta^oa ^
faXXowl^ ^t^laa taxao wuXd faXX XorgaX^ osi ^oodo ro^uirtha u»V or oonroa tmtariaXa aM aklXle isoodod fcr tho dofouro pra^racs*
Pro^osod rata |
JaKlotlact rata
(i4ar oent' of xaaattfacturora1 prioa)
auto^oblXoo mi K^taroyoXoa
20
5*5
iUttm^MXa jNMrt^ a»d aeeaggorlag
X!5
Kadlo a^ta
IX
%5
HoohaioiaaX rafH orator a
XX
Plraansa#
piatoXo« rovoXvora
£5
XX
(epaoifio rates)
taaaXim
Sit par gaX»
X^SfT |>or eaX
nraa
p^r Xb
£#5/ par Xb
luboa
p«r lb
par Xb
XAWury gooda (fura# 4«woXry# ata*}
Vari^xm rataa
awiaw YloXd ^ tho y£*Xd of thaae propotald
a fuXX yacr baal«
bo
roughly attt'&aatod "aa1 fdiXowai
(glXliana of doXXwa)
1• l&wtmn* profit* ta» raviaiomo
700
Spaeial dafanaa
an aorporata I n ^ a
£00
Individual
tast
(a)
Income* af oouplo® aa
is^ow
(W I m r narriad paraoixa ax^tion to $Xt£00
(a) Balaa ai^rtax rataa id^d Xc^mr a x ^ t i a n
5. Sa&iBe tw»«
April
22,
19l&
ittOTttX A
i & j m m m i moFOSEB sq&TJX JUTES
Curtsnx j»t lactase
Rate (pot cent)
Svrbax set iaeoa®
ito (pgr coat)
(fhomm&tt of dollar*) aglgtiBg I'jftrbpoeoa (Iboacaada of dollars)
0 to
to
J* to
6 to
$ to
10 to
12 to
lit to
to
la to
20 to
322 to
26 to
to
30 to
Ut to
2.
8
10
IS
&
IS
20
£6
52
0
0
*
8
ID
12
15
is
a
au
a?
30
35
7
10
11
19
22
25
23
I1
»
m
50
60
50 %o
70
60 to
SO
70 to
90
CO to
to
100
100 to
150
150 to
200
£00 to
250
250 to
300 to
IjOO to
500
500 to
750
750 to 1,000
1*000 to 2*000
C.QCO to 5,000
5*000 <mdtm*
||||
U7
52
50
56
56
58
60
62
60
62
5S
d
Ch
66
m
70
72
73
%
75
7
f63
70
72
73
Ik
75
BXX523R? /m JtOPCfiSD EfiT/tS t/X SATES
Rate (per coat)
Hot
10
20
50
bo
50
70
100
150
200
250
I00
1450
6C0
750
000
10
20
30
jQo
50
70
loo
150
200
250
hPO
im
600
750
BOO
1,000
a
h
6
8
10
12
Ik
17
17
go
£0
83
S3
26
26
i
10
12
15
10
SI
25
E5
50
30
35
35
Sot Sgtata
1,000
1,500
2,000
2,500
3,000
1#500
2,000
a,500
3,000
1,000
3.500
4,000
I», 500
JU#500
5.000
6,000
7,000
5,000
7,000
6,000
9,000
10,000
20,000
50,000
6,000
8,000
9,000
10,000
20,000
50,000
Rftto (per eo&t)
32
35
s
hi
51
55
55
57
a
s
50
53
56
59
65
67
S
65
66
67
63
69
70
70
liot«i Vaeor wasting
-set* •ot*&r i« eoaputaa
aoduetisg & specific vsmpS"
tion of &0,0G0| undor tfa* proponed liar the «pdolfi<t Qjtonptica would f» roduwd
to $25,000*
@FedFRASER