Henderson Daily Dispatch

INSURANCE FIRMS AND BANKS LIKELY TO GET EXEMPTION

But Still Higher Rates In Higher Brackets May Be Imposed if Needed For Levies

MORE TAX TABLES BY THE TREASURY

Higher Tax Proposed in Newest Batch Lower Than 75 Percent Contained In Former List; Excessive Charges Would Defeat Very Purpose Sought

Washington, March 11.-(AP)- A House Ways and Means sub-committee today clamped a "gag" on any further disclosures of Treasury data submitted as a basis for working out President Roosevelt's $792,000,000 tax program.

Coincidentally, there were intimations that the sub-committee was approaching an understanding that tax rates on undistributed corporation earnings will be adjusted so as to meet any loss of revenue occasioned by providing a "cushion" reserve for corporations, and by exempting banks, insurance companies and fiduciary organizations from the projected corporate levy.

Some committeemen intimated that higher rates in higher brackets than those originally advanced by the Treasury may be resorted to if needed to assure the yield of $620,000,000 of additional income which the administration is seeking from the corporate tax.

It was learned privately that new tax tables were handed over today by Treasury experts, in which the highest rate submitted was below the 75 percent maximum suggested by the Treasury yesterday in the event the sub-committee should insist on providing corporations with a reserve exempt from taxes or taxes at a low rate, on which to lean during "rainy" days.

The 75 percent rates were described by one committeeman as entirely impractical, because "not a dime" would be collected under them.

Rather than pay such rates to be permitted to put a large share of undivided income into reserves, it was asserted corporations would distribute such net income among stockholders who would pay income taxes upon the dividends.