TAX ON PROFITS.

Ashburton Guardian, Volume 56, Issue 122, 5 March 1936, Page 6

TAX ON PROFITS.

DRASTIC AMERICAN PROPOSAL. OBJECTION IN CONGRESS. United Press Association—Copyright) WASHINGTON, March 3. A tax revision programme which stunned Congress by its breadth was proposed, by President Roosevelt today in a special message which was greeted coolly by some Democrats and condemned by Republicans. The President asked for the repeal of the present corporate system, which brings in almost 1,000,000,000 dollars a year, and urged the substitution of a drastic tax on undistributed corporation profits. The proposed levy is estimated to yield roughly 1,600,000,000,000 dollars. The principal objection raised to the plan is that it will have a very adverse effect on business and discourage expansion, without whichthe absorption of more unemployed is impossible.

A message published on Tuesday stated that a new taxation programme had been . announced by President Roosevelt to meet 1,137,000,000 dollars of farm and soldiers' bonus costs. The raising of approximately 120,000,000 dollars of annual revenue was provided for (for the bonus payments) and 500,000,000 dollars of new permanent annual taxation to supplant revenue stopped by the prohibiting of the agricultural adjustment administration. There would also be 500,000,000 dollars in temporary taxation.

DRAIN ON RELIEF FUNDS. DEPENDENTS NUMBER 24,000,000. WASHINGTON, March 3. It is announced that about 24,000,000 persons are dependent on state and federal relief disbursements, compared with 21,000,000 in January, 1934. . The average dole benefit a family increased from 23 dollars to 26. The total relief expenditure for 1935 was 1,826,000,000 dollars, compared with 1,476,000,000 dollars in 1934.