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Congress Grants Business Tax Relief of $1 Billion
University Daily Kansan
WASHINGTON — (UFI) — Congress has decided to hand business more than $1 billion in tax relief that President Kennedy insists is needed to modernize industry, spur the economy and create jobs.
But the lawmakers, as expected, have refused to accept any part of Kennedy's proposal to withhold at the source income taxes owed by individuals on interest and dividends. Instead, a new reporting system will be used to help collect such taxes.
These decisions were reached last night by a Senate-House conference committee in compromising differences between the sharply modified versions of the President's tax revision program approved earlier by the two branches of Congress.
And, only moderate curbs will be imposed on the tax-deductible business entertainment which Kennedy sought to eliminate.
The compromise legislation—ticketed by Democratic leaders for final Senate and House approval next week—fell far short of the program recommended by the President 16 months ago. Nevertheless, top administration officials proudly hailed it as a big first step toward tax reform.
Because the tax relief for business was made retroactive to last January 1, and revenue-producing features would not begin to take effect until next January 1, the joint congressional tax staff said it would cost the treasury almost $1.3 billion in revenue during the next nine months. The ultimate full-year cost of all features was put at $545 million.
The bill's major provisions include:
Tax Cuts for Business
A revised form of the tax incentives proposed by Kennedy would be offered to corporations, business proprietors, farmers and other self-employed persons.
The amount of the relief would be geared to the amount spent on purchase of equipment and tools used to produce income. The tax cuts could range as high as $7 for each $100 spent on such purchases.
Interest and Dividends
In lieu of Kennedy's proposed tax withholding, corporations, banks, and other payers of interest and dividends would be required to send a report to both the Treasury and the individual taxpayer concerned on every account on which there were earnings of at least $10 a year.
Moderately stiffer rules would govern tax deductions claimed for business entertainment. Closing a loophole opened by 32-year-old Supreme Court decision, the bill would permit the Treasury to deny deductions for business entertainment unless it is substantiated by documented records.
Business Entertainment
Moreover, tax deductions would be barred for expenses of buying or maintaining yachts, hunting lodges and swimming pools unless they were used more than one-half of
the time for business entertainment. This means a businessman no longer could charge off part of the rent for a luxury apartment for his family simply because he entertains customers there.
Other Provisions
A ceiling of $25 a year would be placed on tax deductible business gifts. Business firms would be allowed for the first time to claim tax deductions for the expense of lobbying to influence government decisions directly affecting their trade or business. The administration opposed this.
Other features would increase taxes on mutual savings banks and savings and loan associations and restrict use of foreign "tax havens" to avoid or delay payment of taxes. Taxpayers would have to pay the regular, instead of the favorable capital gains, tax on profits from sale of property other than buildings on which the market value has not dropped as fast as tax writeoffs for depreciation.
Flood Strikes Barcelona
BARCELONA, Spain—(UPI)—The worst flood in Spanish history struck the Barcelona area today, leaving at least 242 persons dead and 395 missing, the provincial government announced.
Hurricane winds dumped heavy rains into the parched riverbeds of northern Spain and the floodwaters raced unchecked to inundate villages and towns that were suffering from a long drought only yesterday.
Three rivers—the Riera, Bessos, and Ripoll—surged over their banks, flooding hundreds of square miles of fields, sweeping away dozens of bridges, and burying houses under tons of mud.
reached here from areas cut off by the flood.
Catalonia Province officials said thousands of families were left homeless. They feared the death toll would go higher as reports
Barcelona escaped the floods but felt the effects of the hurricane and rain.
Chief of State Generalissimo Francisco Franco sent his newly-apPOINTED vice president, Capt. Gen. Agustin Munoz Grande, to direct rescue operations at the scene with three cabinet ministers.
As survivors straggled into the relief centers set up by the Red Cross, police, and civilian volunteers, they told these stories of disaster:
In the town of Sabadell, the Ripoll River flooded five textile factories, damaging millions of dollars worth of machinery. Unconfirmed reports said the workers in one of the factories did not have time to escape before the waters struck.
Britisher Lectures on Hamlet
By Tom Winston
Prof. John Crow, reader of English at King's College, University of London, spoke yesterday on "Hamlet: The Player's Speech" in a Forum Room lecture sponsored by the department of English.
Mr. Crow said that one function of the player's speech (Hamlet, II. ii) is "slowing up the action before the main excitement of things begins to get going. The rest of the events follow rather quickly," he added, alluding to Hamlet's "to be or not to be" soliloquy and his little play before King Claudius.
"IF YOU subscribe to the doctrine that Shakespeare knew what he was doing, as I do, you will see that every step is taken to prevent that story from being told — the very thing expected when one is reading epic narrative. Shakespeare was using epic narrative here, I think. He certainly knew how to make his dramatic narrative move swiftly when he wanted to," said Mr. Crow.
"When one sees a performance of this play ("Hamlet") it being a long play, one finds often that the player's speech has been cut. There are three reasons authorities usually give for cutting it.
"SOME SAY it is to be regarded as a piece by Marlowe that Shakespeare found lying about. Some think it is an early piece which Shakespeare wrote and wanted to make fun of. And others say that
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it has no particular point in the play — that it is not functional.
"I am opposed to all three tenants. I believe it does have a most important function in the play," Mr. Crow said.
The speech also reveals a part of Hamlet we would not have seen otherwise, Mr. Crow said. Hamlet likes the speech, though Folonius makes snide remarks throughout.
"THE HELLISH Pyrrhus' is the son of the dead Achilles, and he must avenge his own father," Mr. Crow said. "One of the reasons that Hamlet likes this passage is because he wants to recall his relationship to the death of his father."
"Shakespeare is always showing a man in a given situation. One of the ways Shakespeare shows Hamlet to us is showing Hamlet and his relationship to his bereavement." Mr. Crow said.
Hunters Spot Rare Mammals
BUENOS AIRES—(UPI)—Hunters in the southern province of Rio Negro recently sighted a pair of Duck-billed Platypuses, the first seen in Argentina in many years, it was reported today.
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