AN ACT TO PROVIDE REVENUE, EQUALIZE TAXATION,
AND FOR OTHER PURPOSES

L

MARCH 12 TO 15, 1934

Printed for the use of the Committee on Finance

46932

UNITED STATES
GOVERNMENT PRINTING OFFICE

WASHINGTON: 1934

MONDAY, MARCH 12, 1934

UNITED STATES SENATE,
COMMITTEE OF FINANCE,
Washington, D.C.

The committee met, pursuant to call, at 10 a.m., in room 312, Senate Office Building, Senator Pat Harrison presiding.

Present: Senators Harrison (chairman), George, Walsh, Barkley, Connally, Gore, Costigan, Bailey, Clark, McAdoo, Byrd, Lonergan, Reed, Couzens, Keyes, Metcalf, La Follette, and Walcott.

The committee had under consideration H.R. 7835.

The CHAIRMAN. The committee will come to order. I would like to state to those who appear before the committee that we are going to have three mornings of hearings. There are many witnesses, consequently everyone must be very brief. If you have a brief to file, with a short statement, we will appreciate it.

We have copies of the hearings that were conducted before the Ways and Means Committee. We are going back into executive session, your briefs will receive consideration, and I hope the witnesses will cooperate with the committee and make their explanation as short as possible. If there is anyone in the audience now who merely wants to file a brief, you may do that, thus saving your time and the committee's time.

GENERAL STATEMENTS

Mr. David A. Gaskill, Cleveland, Ohio, representing the Cleveland Chamber of Commerce.

STATEMENT OF DAVID A. GASKILL, CLEVELAND, OHIO, REPRESENTING THE CLEVELAND CHAMBER OF COMMERCE

Mr. GASKILL. First, as to taxation of gains and losses, sections 117 and 23 (j). The bill as it passed the House contains provisions to the effect that losses may be deducted only to the extent of gains. That, as a revenue producer, should be efficacious, because unquestionably large amounts of losses are deducted, with the resulting decrease in the tax. It is noted, however, that in a case of a sale that is made in December at a loss there may be no benefit from that loss; yet a gain may be realized from the sale in January of the next year, with the result that that gain would be subject to taxation. We make the suggestion that the excess of losses over gains be carried forward to offset gains, if any, in the succeeding years. That would not reduce the income that is applicable to the year 1934. It would affect the income from tax returns filed covering the year 1935.

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