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promptly refunded or credited to such corporation as an overpayment of tax. A refund of tax shall be made under this section only if claim therefor is filed after the close of the period corered by the claim and on or before the last day of the taxable yearv

"(bi Cross Reference.

"For credit or refund of amounts not refunded under this section, see section 39.

"Sec. 3487. Credit for tax u-ithheld on corporation.

‘"a) General Rule—Any tax deducted and withheld under this chapter with respect to amounts receii'ed by a corporation (other than a corporation described in section 3485(0)) during a taxable year shall, to the extent not claimed and allowable as a credit or refund to the corporation under section 3486, be allowed. under regulations prescribed by the Secretary or his delegate, as a credit against (but not in excess of) the tax for which such corporation is liable under this chapter in respect of amounts paid by it during such year.

“(b) Diridends and Patronage Dividends Paid During Taxable Year—For purposes of determining the credit allowable to any corporation under subsection (a), a dividend, or amount subject to withholding under section 3471, paid by it may be considered as haring been paid during the taxable year—

'‘(I) in the case of a personal holding company, if treated as paid during such taxable year under section 563(b),

"(2) in the case of a regulated inrestment company, if treated as paid during such taxable year under section 855m).

"(3) in the case of a real estate inrestment trust. if treated as paid during such taxable year under section 858(0). 0r

“(4) in the case of a cooperative described in section 1381(0), if paid during the payment period (as defined in section 1382(d)) for such taxable year. “(c) Special Rule for Corporations

Which Are Members of an Athliated Group—To the extent and subject to such conditions as may be provided in regulations prescribed by the Secretary or his delegate. the tax deducted and withheld under this chapter with respect to amounts received by a corporation which is a member of an afllli‘ated group which filed a consolidated return for the preceding taxable year of the affiliated group may. for purposes of this section. be treated as tax deducted and withheld under this chapter from any corporation which is a member of the same affiliated group.

"Sec. 3488. Obligation sold between in

terest-payment dates. "For purposes of any credit or refund prorided in section 3484. 3485. 3486, or 3487, in the case of an obligation which is sold or exchanged between interest-payment dates the amount required to be deducted and withheld on the interest at the end of the interest-payment period shall be treated in the manner provided in section 39w).

"Sec. 3489. Presu m ption.

"For purposes of establishing that any person is entitled to a credit or refund of any tax required to be deducted and withheld under this chapter with respect to amounts received by such person, the correct amount of such tax shall, in the absence of evidence to the contrary, be presumed to have been so deducted and withheld.

“Sec. 3490v Definitions.

"For purposes of this chapter—

"(I) Person—The term ‘person’ includes the United States, a State, a foreign got-ernment, and an international organization.

“(2) State.—The term ‘State’ includes a State, the District of Columbia. 0 possession of the United States, any political subdii-ision of any of the foregoing, and any wholly owned agency or instrumcntality of any one or more of the foregoing,

"(3) Foreign government—The term ‘foreign got-ernment‘ includes a foreign government, a political subdivision of a foreign government, and any wholly owned agency or instrumentality of any one or more of the foregoing.

"(4) Nonresident alien—The term ‘nonresident alien individual‘ includes an alien resident of Puerto Rico."

(2) Clerical amendments, etc.—

(A) The heading for subtitle C is amended to read as follows:

"Subtitle C—Employment Taxes and Collection of Income Tax at Source" (8) The table of chapters for subtitle

C is amended by striking out the last line

and inserting in lieu thereof the follow

ing!

"Chapter 25. Collection of income tax at source on interest. dlt'tdends, and patronage diiidends.

"Chapter 26. General provisions relating to employment taxes and collection of income taxes at source.“

(Ci The table of subtitles under the heading "Internal Revenue Title" at the beginning of the Internal Revenue Code of 1954 is amended by sinking out the third line and inserting in lieu thereof the following:

"Subtitle C. Employment taxes and collection of income tax at source."

(0) The heading for chapter 26 (as redesignated by paragraph (I) of this subsection) is amended to read as follows:

"Chapter 26—General Provisions Relating to Employment Taxes and Collection of Income Taxes at Source"

(b) Credits Against Income Tax for Tax Withheld.—

(I) Allowance of credit-Part IV of subchapter A of chapter I (relating to credits against tax) is amended by inserting after section 38 (added by section 2 of this Act) the following new section:

"Sec. 39. Tax withheld on interest. d::~idends. and patronage dividends.

“(a) General Rule —Under regulations prescribed by the Secretary or his delegate, the tax deducted and withheld under chapter 25 (relating to withholding at source on interest, dzz-zdcndi and patronage dti‘tdl'hd!) shall be allowed. to the recipient of the amount 1.1.": 'espect to u'hzch such tax was tied-.41’: and withheld, as a credit against the to; imposed by this subtitle for the taxable year in which such amount is receized

"(b) Special Rule for Dependent (‘hzldren —If_

‘‘(I) the taxpayer for ‘in taxable year is entitled to a deduction under section I$I(c)(I)(8) :. child,and

"(2) such child had, ‘u’ the vale".dar year ending :.-:.'h or :.-:.'t;:n the 7::payer's taxable year—

"L-t) g'wi 8600,0nd

“(8) no traces (as defined in section 340I(a)) with respect to :. Kiel; withholding was Y"':'.i‘t't‘d under

chapter 24.

then, under regulations prescribed ‘v, the Secretary or his delegate, the tarp-3'," shall be entitled to the credit p'ut‘ided by subsection (a) with respect to amounts received by such child during such calendar year, but only if such child has not filed any elm": Mr credit or refund of any portion of the tax deducted and withheld with respect to amounts.

"(c) Apportionment of Credit -For purposes of subsection (a), if an obligation is sold or exchanged between interest payment dates—

"(I) so much of the amount required to be deducted and 2.1."1’2e‘i'd on the interest at the end of the interestpayment period as is properly cllocc ble to that part of such period which end' on the date of the sale or c:":c".z;e shall be treated as an arm/ant deducted and withheld from the t'cns'c'or on the date of the sale or exchange, and

"(2) so much of such amount as is properly OIZOt'CblC to that part of such period which begins on the day after the date of the sale or exchange shall be treated as an amount deducted and withheld from the transferee.

“(d) Limitations -—The credit provided by subsection (a) shall not be a.‘lowed—

"(l) Refund to individuals -To any individual with respect to any amount 0] tax allowed him as a refund under section 3484.

"(2) Credit or refund to States etc—To any person with respect to any amount of tax allowable to (‘.c". person as a credit or 'eiund and” section 3485 or as a credit under section 3505.

"(3) Credit or refund to corporations—To any person with respect to any amount of tax allowed such person as a credit or refund under .H'i‘tzi r. 3486 or as a credit under section 3487.

.0). ,.oa~ “metre ..'c

. . :ncw'z" ‘it iris t'zcr'.

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“(4) Certain dependent children.— To any person with respect to any amount of tax which has been claimed and is allowable as a credit to such person’s parent by reason of the provisions of subsection (b).

"(5) Nominees, etc.—To any person with respect to any amount of tax allowed such person as a credit under section 1444 (b)

(2) Common trust funds—Section 584 (0) (relating to the income of participants in the fund) is amended by adding at the end thereof the following new paragraph:

“(3) Tax withheld at source on interest, dividends, and patronage dividends—In any case where tax under chapter 25 is deducted and withheld on any amounts received by a common trust fund, for purposes of any credit or refund provided in section 39 or 3505, or chapter 25, such tax shall, in accordance with regulations prescribed by the Secretary or his delegate, be considered as having been deducted and withheld proportionately from each participant.”

(3) Estates and trusts—Section 642 (a) (relating to special rules for credits and deductions in the case of estates and trusts) is amended by adding at the end thereof the following new paragraph:

“(4) Tax withheld at source on interest, dividends, and patronage dividends—In any case where tax under chapter 25 is deducted and withheld on any amounts received by an estate or trust, for purposes of any credit or refund provided in section 39 or 3505, or chapter 25, such tax shall, in accordance with regulations prescribed by the Secretary or his delegate, be considered as having been deducted and withheld from each beneficiary in an amount which, when added to the amounts paid, credited, or required to be distributed to him, equals the amounts which would have been paid, credited, or required to be distributed to him in the absence of chapter 25. Any tax under chapter 25 which is deducted and withheld on amounts received by the estate or trust shall be considered as withheld from such estate or trust to the extent it is not considered as withheld from a beneficiary under the provisions of the preceding sentence.”

( 4) Technical amendments.—

(A) Section 164(b) (1) (relating to deduction denied in the case of certain taxes) is amended by—

(i) striking out the word “and" at the end of subparagraph (B) ,'

(ii) striking out the comma at the end of subparagraph (C) and inserting “; and”; and

(iii) adding after subparagraph (C) the following new subparagraph:

“(D) the tax withheld at source under chapter 25 (relating to collection of income tax at source on interest, dividends, and patronage dividends)

(B) Section 874 (a) (relating to allowance of deductions and credits to nonresident alien individuals) is amended by striking “31 and 32” and inserting in lieu thereof “31, 32, and 39”.

(C) Section 1314(e) (relating to inapplicability of part II of subchapter Q of chapter 1 of subtitle A to taxes imposed by subtitle C) is amended by striking “employment taxes” and inserting in lieu thereof "employment taxes and collection of income tax at source.”

(D) Section 6211(b) (1) (relating to rules applicable in determination of deficiency) is amended by striking “31" and inserting in lieu thereof “31 or 39".

(E) The table of sections for part IV of subchapter A of chapter 1 is amended by striking out

“See. 38. Orerpayments of tarc.”

and inserting in lieu thereof

"Sec. 38. Investment in certain depreciable property.

"Sec. 39. Tax withheld on interest, dividends, and patronage dividends.

"Sec. 40. Overpayments of tax."

(0) Interest and dividend paid to nonresident aliens, etc.—

(1) Withholding rate.—

(A) Section 1441 (relating to withholding of tax on nonresident aliens) is amended by adding at the end thereof the following new subsection:

“ (e) Treaties—In the case of amounts described in section 3452(a) (relating to interest), section 3462(a) (relating to dividends), and section 3472(a) (relating to patronage dividends), the tax required to be deducted and withheld under subsection (a) shall not by reason of the provisions of any treaty be less than 20 percent of such amounts."

(B) Section 1442 (relating to withholding of tax on foreign corporations) is amended by adding at the end thereof the following new sentence: "In the case of amounts described in section 3452(a) (relating to interest), section 3462(a) (relating to dividends), and section 3472(a) (relating to patronage dividends), the tax required to be deducted and withheld under the preceding sentence shall not by reason of the provisions of any treaty be less than 20 percent of such amounts.”

(2) Nominees, etc—subchapter A of chapter 3 (relating to withholding of taa: on nonresident aliens and foreign corporations) is amended by adding at the end thereof the following new section:

“Sec.1444. Interest and dividends paid to nominees; credits to withholding agents.

“(a) Withholding of tax by payor.-—Under regulations prescribed by the Secretary or his delegate, every person who pays amounts subject to withholding under chapter 25 and who has been notified by a payee thereof that the payee is a nominee required to deduct and withhold on such amounts under section 1441 or 1442 shall, in lieu of the nominee, deduct and withhold from such amounts paid to the nominee the tax required to be deducted and withheld under section 1441 or 1442, in the same manner as if such amounts were paid by such person directly to the beneficial owner thereof.

“(b) Credits to withholding agents.— In the case of any person who is required to deduct and withhold tax under section 1441 or 1442 in respect of amounts received by him during any calendar year

on which taa: was deducted and withheld

(or, in the case of amounts described in

section 39(c) (1) , was treated as deducted

and withheld) under chapter 25, the taxes so deducted and withheld (or treated as deducted and withheld) under chapter 25 shall, under regulations prescribed by the Secretary or his delegate, be allowed as a credit against (but not in excess of) his liability for the year in respect of the taxes imposed by

sections 1441 and 1442.”

(3) Clerical amendment—The table of sections for subchapter A of chapter 3 is amended by adding at the end thereof the following:

"Sec. 1444. Interest and dividends paid to nominees; credits to withholding agents.”

(d) Credit for States and tax-exempt organizations.—

(1) Allowance of credit—Chapter 26 (general provisions relating to employment taxes and income taa: withheld at source) is amended by adding at the end thereof the following new section: “See. 3505. Special credit in case of

States or tax-exempt organizations.

“(a) General rule—In the case of a person which is a State (as defined in section 3490(2)) or which is an organization (other than a cooperative described in section 521) which is exempt from the tax imposed by chapter 1, the tax deducted and withheld under chapter 25 with respect to amounts received by it during any calendar quarter shall be allowed, under regulations prescribed by the Secretary or his delegate, as a credit against (but not in excess of) such person's liability (after the adjustments, if any, provided for in sections 6205(a) and 6413( a) for such quarter in respect of the taxes imposed by chapter 21 (Federal Insurance Contributions Act) and by chapter 24 (collection of income taa: at source on wages). Such credit shall be allowed only if claim therefor is made, in accordance with such regulations, at the time of the filing of the return with respect to the taxes under chapter 21 and chapter 24 for such quarter.

“(b) Obligations sold between interest-payment dates—For purposes of this section, in the case of an obligation which is sold or exchanged between in— terest-payment dates, the amount required to be deducted and withheld on the interest at the end of the interestpayment period shall be treated in the manner provided in section 39(0).

“(c) Cross Reference.—

"For refund under chapter 25, see section 3485."

(2) Technical amendments.—

(A) Section 3502 (relating to nondeductibility of taxes in computing tad:able income) is amended by adding at the end thereof the following new subsection:

“(c) The taa: deducted and withheld under chapter 25 shall not be allowed as a deduction in computing taxable income under subtitle A either to the person deducting and withholding the tax or to the recipient of the amounts subject to withholding.”

(B) The table of sections for chapter 26 is amended by adding at the end thereof the following.‘

"See-.3505. Special credit in case of States or tax-exempt organisations.” in Other Technical Amendments.—

(1) Declaration of estimated income tax by individuals—Section 6015(a) (relating to declaration of estimated income tax by individuals) is amended by striking out the period at the end of paragraph (2) and inserting in lieu thereof "and amounts on which tax is required to be deducted and witheld under chapter 25.".

(2) Adjustment of tax; ment.—

(A) Subsection (03(1) of section 6205 (relating to special rules relating to assessment of employment taxes) 15 amended by striking out "or 3402 is paid with respect to any payment of wages or compensation." and inserting in lieu thereof "3402, 3451. 3461, or 3471 is paid with respect to any payment of remuneration, interest, dicidends, or other amounts".

(8) Subsection (b) of such section is amended by striking out "or 3402 is paid or deducted with respect to any payment of wages or compensation" and inserting in lieu thereof “3402, 3451, 3461. or 3471 is paid or deducted with respect to any payment of remuneration, interest, dicidends. or other amounts".

(C) The heading for such section is amended to read as follows:

"8ec.620$. Special rules applicable to certain taxes under subtitle C.“

(D) The table of sections for subchapter A of chapter 63 is amended by striking out "See.6205. Special rules applicable to cer

tain employment taxes." and inserting in lieu thereof

"Sec.6205. Special rules applicable to certain taxes under subtitle C."

underpay

(3) Use of Government depositaries.— Section 6302(c) ( relating to use of GO!‘ernment depositaries) is amended by adding at the end thereof the following new sentence.‘ "The Secretary or his delegate shalt not require the deposit under this subsection of any tax deducted and withheld under chapter 25 (relating to collection of income tax at source on interest. dividends, and patronage dividends) in a Government depositary before the last day prescribed in section 3481 for payment of the tax."

(4) Excessive withholding.—-Section 6401(b) (relating to excessive withholding) is amended to read as follows:

"(b) Excessive Withholding—1f the amounts allowable as credits under secU071 31 (relating to credit for tax withheld at source under chapter 24) and section 39 (relating to credit for tax uithheld on interest. dividends. and patronage dividends under chapter 25) exceed the taxes imposed by chapter 1 against which such credits are allowable. the amount of such excess shall be considered an overpayment."

(5) Adjustment of tax: ment.—

overpay

(A) Subsection (0)“) of section 6413 (relating to special credit and refund rules applicable to certain employment taxes) is amended by striking out "or 3402 is paid with respect to any payment of remuneration," and inserting in lieu thereof "3402, 3451, 3461, or 3471 is paid with respect to any payment of remuneration, interest, dtt‘ldttldJ, or other amounts "

(8) Subsection (b) of such section is amended—

(i') By striking from the heading of such subsection the words "of Certain Employment Taxes": and

(ii) By striking out "or 3402 is paid or deducted with respect to any payment of remuneration" and inserting in lieu thereof "3402. 3451, 3461, or 3471 is paid or deducted with respect to any payment of remuneration. interest, dividends, or other amounts." (C) The following new subsection is

added at the end of such section.‘

"(e) Cross References.—

"For special refunds or credits of tax withheld on interest, dtl‘ldt‘tldS. or patronage dividends under chapter 25, see sections 3484, 3485. 3486, 3487, and 3505."

(D) The heading for such section is amended to read as follows:

"Sec. 6413. Special Rules Applicable to Certain Taxes Under Subtitle C."

(E) The table of section for subchapter B of chapter 65 is amended by striking out "See 6413. Special rules applicable to certain employment taxes.“

and inserting in lieu thereof

"8ec6413. Special rules applicable to certain taxes under subtitle C"

(6v Overpayment not deducted and withheld- Section 6414 (relating to income tax withheld) is amended by striking "chapter 3" and inserting in lieu thereof "chapter 3 or 25".

(7) Time tax considered paid—Section 6513(b) (relating to time tax considered paid) is amended by adding at the end thereof the following new sentences: "For purposes of section 6511 or 6512. 0'11! tax deducted and withheld under chapter 25 which is allowable under section 39, 3484. 3485. or 3486 as a credit against tax or as a refund of an overpayment (or an amount treated as an overpayment) of the tax imposed by chapter 1 shall. in respect of the person entitled to such credit or refund. be deemed to have been paid by him on the last day prescribed for filing the return (determined without regard to any extension of time for filing such returnv of tax under chapter 1 for his taxable year in which the amount subject to withholding under chapter 25 is received by him or, if such person has no taxable year. on the fifteenth day Of the fifth calendar month following the close of such person's annual accounting period within which such amount is received by him. In the case of an amount allowable as a credit under section 39(b) to the parent of a child, such amount shall. if claimed by the parent, be deemed to have been paid

on the last day tor filing his return determined without regard to any extension of time for filing such return) for his taxable year which begins 211th of u1thin the calendar year in which amounts subiect to withholding under chapter 25 were recewed by the child "

(8) Failure to pay estimated income tax.—

(A) Individuals —Subsections (e) and if) of section 6654 irelatzng to failure by indtrtduals to pay estimated income tax are amended to read as follows?

“(e) Applicaizon of Sectmn in (‘an o

Withheld Taxes -l'or purport‘! 11' app",:no this section— "il) the estimated tax shall be

computed without any reductzon t rr

amounts whzc'i t‘ze :nd:::dual (rt:

mates as his credzts under 'ectir n 3.’

(relating to tax withheld at source

on wages) and sectzon J9 (relating to

tax withheld on interest, d::‘:der.ds and patronage drrzdcndi); and

"(2) the amount of the credits allowed under sections 31 and 19 for the taxable year shall be deemed a payment 0' ext:mated tax, and an equal part 0' such amount shall be deemed pa;d i-r. ear’; z".stallment date idete'r'nned under se;.': n 6153) for such taxable year, u'ziers f‘.r taxpayer establishes the dates in. which all amounts were actually uithheld it" in the case of amounts dcscrzbed in section 39-c)i1), were treated as withheld , in which case the ar'tou'lts so withheld shall be deemed pawnents of estimated tax on such dates.

"(1) Tax Computed After Apfi‘i'tt‘cftt'f. of Credits Against Tax —For pu'p 4e! o’ subsections lb) and id), the te'r'i 'ta." means the tax imposed by chapter 1 reduced by the credits agamit ta: allot.- ed by part I)‘ of subchapter A of chapter 1, other than the credits CQGtYUl tax provided by section 31 (relating to ta: withheld on wages) and section 39 irelating to tax withheld on interest, dzzzdends and patronage dividends L"

(It) Corporations —Section 6655 (re. lating to failure by corporation to :a', estimated income tax) is amended-

(i) by striking out the perm-d at the end of subsection ("(2)-B) and inserting in lieu thereof other than the credit against tax provided by section 39 (relating to tax withheld on interest. dividends. and patronage dicidendsL"; and

(1t' by redesignating subsection (I) as subsection (g) and inserting after subsection (e) the following new subsection.’

“i/) Application of Section in Case 0' Tax Withheld on Interest, Dtf‘idttld-l and Patronage Dividends —For purposes of applying this section

"(1) the estimated tax shall be computed without any reduction to’ the amount which the corporation eitimates as its credit under section 39 (relating to tax withheld on interest dividends. and patronage dicidendi): and

"(2) the amount of the credit al_ lowed under section 39 for the taxable year shall be deemed a payment of estimated tax, and an equal part of such amount shall be deemed paid on each installment date (determined under section 6154) for such taxable year, unless the corporation establishes the dates on which all amounts were actually withheld (or in the case of

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amounts described in section 39(0) (1) ,

were treated as withheld), in which

case the amounts so withheld shall be deemed payments of estimated tax on such dates.”

(9) Penalty for filing fraudulent exemption certificate—Section 7205 (relating to fraudulent withholding exemption certificate or failure to supply information) is amended by adding the following new sentence at the end thereof: “Any person who willfully files an exemption certificate with any withholding agent under section 3483, on which the certification is known by him to fraudulent or to be false as to any material matter, or who is required to file a notice under subsection (a) (3) (B) of section 3483 and who willfully fails to provide such notice in the manner, at the time, and showing the information required under such subsection (a)(3) (B), or the regulations prescribed thereunder, shall, in lieu of any penalty otherwise provided, upon conviction thereof, be fined not more than $500, or imprisoned not more than 1 year, or both.”

(10) Offenses with respect to collected taxes—The last sentence of section 7215 (b) (relating to offenses with respect to collected taxes) is amended to read as follows: “For purposes of paragraph (2) , a lack of funds existing immediately after the payment of wages or amounts subject to withholding under chapter 25 (whether or not created by the payment of such wages or amounts) shall not be considered to be circumstances beyond the control of a person.”

(11) Definition of withholding agent—Section 7701(a)(16) (defining the term “withholding agent” is amended by striking out "or 1461” and inserting in lieu thereof 1461, 3451, 3461, or 3471”.

(f) Efl‘ective Dates.—

(1) General rule—Except as provided in paragraph (2), the provisions of this section shall apply in the case of interest and dividends paid on or after January 1, 1963.

(2) Special rules.—

(A) In the case of transferable obligations described in paragraph (1 ) or (6) of section 3452(a) of the Internal Revenue Code of 1954, the provisions of this section shall apply only to interest paid with respect to interest-payment periods commencing on or after January 1, 1963.

(B) The provisions of this section shall apply to amounts described in section 3472 of such Code paid on or after January 1, 1963, with respect to patronage occurring on or after the first day of the first taxable year of the cooperative beginning on or after January 1, 1963.

After debate,

The question being taken on agreeing to the amendment,

It was determined in {Yeas ____ __ 20 the negative _________ __ Nays ____ _- 69

On motion by Mr. Han-ms, The yeas and nays being desired by one-fifth of the Senators present. Senators who voted in the affirmative are—

Bartlett Gruenlng Morse
Carroll Hart Neuberger
Clark Hartke Pell
Cooper Humphrey Proxmlre
Dodd Kefauver Smith, Mass.
Douglas Mansfield Yarborough
Gore McNamara

Senators who voted in the negative
are—
Aiken Hayden Moss
Allott Hickenlooper Mundt
Beall Hill Muskie
Boggs Holland Pastore
Burdick Hruska Pearson
Bush Jackson Prouty
Butler Javits Randolph
Byrd, Va. Johnston Robertson
Byrd, W. Va. Jordan, N.C. Russell
Cannon Jordan, Idaho Saltonstnll
Capehart Keatlng Scott
Carlson Kerr Smathers
Case Kuchel Smith, Maine
Chavez Lausche Sparkman
Church Long, Mo. Stennis
Cotton Long, Hawaii Talmadge
Curtis Long, La. Thurmond
Dlrksen McCarthy Tower
Ellender McClellan Wiley
Engle McGee Williams. N.J.
Ervin Metcalf Williams, Del.
Fong Miller Young, N. Dak.
Fulbright Monroney Young, Ohio

So the amendment was not agreed to. On motion by Mr. BYRD of Virginia to reconsider the vote disagreeing to the amendment, On motion by Mr. ROBERTSON,

The motion to reconsider was laid on the table.

On motion by Mr. WILLIAMS of Delaware (for himself, Mr. AIKEN, Mrs. SMITH of Maine, and Mr. PROXMIRE) to further amend the bill by inserting at the proper places in the bill a section on reduction of overall limitation on individual income tax, and a section on deduction of depletion allowances with respect to oil and gas wells,

Pending debate,

On motion by Mr. MANSFIELD, and by unanimous consent,

Ordered, That debate upon the amendment be limited to 1 hour, equally divided and controlled by Mr. WILLIAMS of Delaware and Mr. MONRONEY.

Pending debate,

On motion by Mr. MANSFIELD to lay the amendment on the table,

It was determined in {Yeas_-___ 57 the afilrmative _______ __ Nays_____ 30

On motion by Mr. WILLIAMS of Delaware, The yeas and nays being desired by one-fifth of the Senators present. Senators who voted in the affirmative are—

Allott Cotton Hill

Bartlett Curtis Holland
Beall Dlrksen Hruska
Burdick Dodd Johnston
Bush Ellender Jordan. N.C.
Butler Engle Jordan. Idaho
Byrd, W Va Fong Kerr
Cannon Fulbright Kuchel
Capehart Gruening Long, Mo.
Carlson Hartke Long, Hawaii
Chavez Hayden Long, La.
Cooper Hickenlooper Mansfield

McCarthy Mundt Stennls

McClellan Pearson Talmadge

McGee Randolph Thurmond

Metcalf Robertson Tower

Miller Russell Williams, N .J.

Monroney Smathers Yarborough

Moss Sparkman Young, N. Dak. Senators who voted In the negative

are—

Ailren Humphrey Pastore

Boggs Jackson Pell

Byrd, Va. Javits Prouty

Carroll Keating Proxmire

Case Kefauver Scott

Church Lausche Smith, Mass.

Clark McNamara Smith, Maine

Douglas Morse Wiley

Gore Muskie Williams, Del.

Hart Neuberger Young, Ohio

So the amendment was laid on the table.

On motion by Mr. KERR to reconsider the vote agreeing to Mr. MANSFIELD'S motion.

On motion by Mr. Louisiana.

The motion to reconsider was laid on

the table.

PRESIDENTIAL APPROVALS

A message from the President of the United States, by Mr. Miller, his secretary:

Mr. President: The President of the United States has approved and signed the following acts and joint resolution:

On August 29,1962:

S. 1849. An act for the relief of Stephen S. Chang;

S. 2686. An act for the relief of Stepanida Losowskaja; and

S. 3491. An act to amend the Atomic Energy Act of 1954, as amended. and for other purposes.

On August 31. 1962:

S. 538. An act to amend section 205 of the Federal Property and Administrative Services Act of 1949 to empower certain officers and employees of the General Services Administration to administer oaths to any person;

S. 1005. An act to amend section 10 and section 3 of the Federal Reserve Act, and for other purposes;

8.1781. An act for the relief of the heirs of Lt. Col. James Murray Bate (de— ceased) and Maj. Billie Harold Lynch (deceased) ;

S. 2256. An act to amend section 5 of the War Claims Act of 1948 to provide detention and other benefits thereunder to certain Guamanians killed or captured by the Japanese at Wake Island:

8.2736. An act for the relief of Arie Abramovich;

S. 2835. An act for the relief of SleuYoeh Tsai Yang;

S. 2862. An act for the relief of Mai Har Tung;

8.2876. An act to extend for 1 year the authority to insure mortgages under sections 809 and 810 of the National Housing Act;

8.3016. An act to amend the act of March 2. 1929, and the act of August 27, 1935, relating to load lines for oceangoing and coastwise vessels, to establish liability for surveys, to increase penalties, to permit deeper loading in coastwise trade, and for other purposes;

LoNo of S 3039. An act ior the reliei oi Bartola Maria 8. La Madrid; and

SJ. Res. 132. Joint resolution extendintt recoimition to the International Exposition ior Southern Caliiornia in the year 1966 and authorizina the President to issue a proclamation callinir upon the several States oi the Union and iorelim countries to take part in the exposition.

On September 5, 1962:

8.981. An act to extend certain authority oi the Secretary oi the Interior, exercised throuizh the Oeolottical Survey oi the Department oi the Interior, to areas outside the national domain;

8 1208 An act to amend Public Law 86-506961h (‘onureas (74 Stat 199), approved June 11. 1960;

S 2008. An act to amend the act oi September 16. 1959 (73 Stat 561; 43 USC. 6155). relatiniz to the construction. operation. and maintenance oi the Spokane Valley project;

8 2399. An act to provide ior the establishment oi the Frederick Douitlass home as a part oi the park system in the National Capital. and ior other purposes;

S 2916 An act to change the names oi the Edison Home National Historic Slit’ and the Edison Laboratory National Monument. to authorize the acceptance oi donations. and ior other purposes;

8.2973. An act to revise the boundaries oi Capulin Mountain National Monument. .\' Mex . to authorize acquisition oi lands therein. and ior other purposes;

8.3112. An act to add certain lands to the Pike National Forest in Colorado and the Carson National Forest and the Sante Fe National Forest in New Mexico and ior other purposes:

8. 3174. An act to provide ior the division of the tribal assets ior the Ponca 'h‘ibe oi Native Americans oi Nebraska among the members oi the tribe, and ior other purposes:

S332". An act to make elit'iblc ior assistance under the public iacility loan proaram certain areas where research or development installations oi the National Aeronautics and Space Administration are located: and

S. 3574. An act to extend the International Wheat Aureement Act oi 1949.

Ordered, That the Secretary notiiy the House oi Representatives thereot

axvnms scar or in:

The Senate resumed the C‘Oitsldt‘t‘fllloil oi its unfinished business. viz. the bill (HR 106501 to amend the Internal Revenue Code oi 1954 to provide a credit ior investment in certain depreciable property. to eliminate certain deiects and inequities. and ior other purposes

On motion by Mr Goa: to iurther amend the bill by Stl'lklilit out all on line 24. pane 134 down to and includina line 25 on pace 135. on earned income irom sources without the United States and by striking out certain words and inSi’l’tlilil other words in various places in the bill.

Pcndint: debate,

The amendments reiected

on a division, were

On motion by .\ir “Ah'ht‘lllb, and

by unanimous consent.

The action oi the Senate disairreeinit to the amendments a as tacated

Pending debate,

The question being taken on aareelnit to the amendments proposed by .\i:' GORE, viz,

On page 134, lN'ttllliiilli-T with line 24. strike out all throuilh line 25 on page 135 and insert the iollovi'intz;

(a) General Rule—in the case of an indll‘ldttdl citizen of the United Stat“ who establishes to the satisfaction of the Secretary or his delegate that he has been a bona fide resident of a foreign country or countries for an uninterrupted period which includes an entire taxable year, amounts received from sources without the United States (except amounts paid by the United States or any agency thereofi irlitch constitute earned income attributable to services performed during such uninterrupted period shall not be included in gross income and shall be exempt from taxation under this chapter. The amount excluded under this subsection for any taxable year shall be computed by applying the special rules contained in subsection (cl,

On paae 137, strike out lines 4 throuizh 13 and insert the iollovvina: a daily basis at an annual rate of 820.000.

On page 139, line 2. strike out "subsection IaHH" and insert subsection (at

On pat'e 139. strike out lines 3 throtiith 20, as iollotvsf

"(7) Czar/(is NONCASH aunt's-ratnon—ii an individual who qualities under subsection (aiili receives compensation ironi sources without the

United States (except irom the United

States or any aitency thereot) in the

iorm oi the rit'ht to use property or

iacilities, the limitation under paragraph (11 applicable with respect to such individual—

"(Al tor a taxable year endin: in 1963, shall be increased by an amount equal to the amount oi such compensation so received durint: such taxable year:

"(81 ior a taxable year endini: in 1964. shall be increased by an amount equal to two-thirds oi such compensation so received durina' such taxable year, and

(Ci ior a taxable year endint: in 1965. shall be increased by an amount equal to one-third oi such compensation so received durini: such taxable year.

On paste 140, bet'innina with line 16. strike out all throuith line 3 on page 141 and insert the iollovvlnit:

(ct Etlcciii'e Date —The amendments made by this section shall apply to taxable years beginning after December 31, 1962.

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Clark Kuchel Proulun
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min Lon. Hawaii Tburnood (‘ion McNamara Yarbrmh Oruenina Uncut Young. Ohio

Senators who voted in the neitauve are

Aiken Nlllfl‘ht i‘e no r

Iaall Banks 1*: ..-. .

80: Hayden Rant .;:~. Bush lilit'ketilouprr H-J‘lrfib‘f. Butler 8111 1'. .w..

81'". V. Holland .‘alv ‘.Ha 8nd,‘? Va lirttska “22113.03 Cape-hart Jordan. N C Smith Maul Carlson Joflllfl ‘film Balm. Hal.‘ 0 Chavez Kerr W Cooper Loan. 80 Sunnis Cotton tions. 14 film (‘urtia Manatkld To": Dirkaon McCarthy Wiley

Dodd McClellan Williatla~ ‘i J xiii-nae: 8:000 wuiiaau. Del lngle Ila Tm N {in For.‘ Mundt

So the amendments were not agreed to

On motion by .\i' Run 14- rim-nude:

the vote dtsaizreeinir to the am. Izdmi-nts On motion by \i: Dinxsrx,

The motion to reconsider ‘Mu laid on the table.

On motion by Mr JM'ITS (ior himseli and .\ir MtCaamvi to iurther amend the bill by inserting on pare 193 aiter line 22. a subsection "31811118 to a corporation incorporated in countries oi the European Economic Community,

Alter debate.

Th1‘ amendment \4 as rejected

On motion 0! .\1.' Kim. to reconszder the vote disagreeina to the amendment.

On motion by .\i: HXLL.

The motion to :eco.".~ider "a as laid on the table.

The bill aas iurther ammzded or‘. the motion oi sir iiiciutrcworn (ior himseli and .\i: “nual.

On motion by .‘-ir .‘ducsrttto and by unanimous consent.

Ordered, That no tote be taker‘. tonit'ht aiter the bill is read the third time. that the Senate contene at 9 o'clock a in tomorrow, and alter 15 minutes‘ limitation ior routine Dunne“ .\1.' Ut‘Sfiil be recoimized ior dlsttlxslfin on the bill and that there be 4 hours’ debate on the pnxsaite oi the bill. to be equally divided and controlled by the matority and m:nority It adtrs

On motion by .\1r Dot'cus to furtiu: amend the bill by inserting on page 391. aiter line 21. a new Mt‘tlot‘. on percentage depletion ior oil and was vielb.

()il motion by .\i.' Doocus.

‘Die yeas and nays beina dr'sired by one-ilith oi the S-nators present uervordered on the question oi asp-mm: to his amendment

Aiter debate.

The question beini: taker. or. 84800135 to the amendment pn'fillfl'd by .\i.'. Dooom, viz. on page 391, insert alter line 2 the iolloa'ina:

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