National Affairs: Empty Basket

For months, in corridors and cloakrooms, at cocktail parties and committee hearings, Washington has been talking about three "baskets." These "baskets" were neither wicker containers nor scoring points in a game but Congressional slang for different sections of the new tax bill—each basket being designed to> catch a certain type of taxpayer. Most discussed has been the "third basket," for it carried the largest load of a pet Administration theory—the tax on undistributed profits.

In the proposed Revenue Act of 1938, reported by the House Ways & Means Committee last fortnight, the undistributed...

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