[PREV]
 
[Part 1 of 2]

     Group B - Taxes occupying an intermediate position between
      Groups A and C and which should not be eliminated before
                          those in Group A

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         Tax and legal                    Measure and             
            citation                     basis of tax             

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a.   Brewer's wort and       Sale of brewer's                     
     malt products           wort and malt                        
     Sec. 601(c)(2) of       products                             
     the Revenue Act         by manufacturer,                     
     of 1932                 producer or importer                 

d.   Refining or             Refining or                          
     processing of crude     processing of crude                  
     petroleum               petroleum in the                     
     Sec. 605(a)(1) of the   United States                        
     Revenue Act of 1934,                                         
     as amended                                                   

a.   Transportation of       Transportation of crude              
     oil by pipe line        petroleum and                        
     Sec. 731 of the         liquid products thereof              
     Revenue Act of 1932                                          

d.   Producing or            Gasoline produced or                 
     recovering gasoline     recovered in                         
     from natural gas        the United States                    
     Sec. 605(a)(2) of       from natural gas                     
     the Revenue Act                                              
     of 1934, as amended                                          

d.   Sale of crude           Refining of crude petroleum          
     petroleum               on the premises where                
     Sec. 604 of the         produced, the removal                
     Revenue Act of          of crude petroleum                   
     1934, as amended        therefrom, or any                    
                             transfer or other disposition of     
                             crude petroleum                      
                             by the producer                      

a.   Crude petroleum, etc.   Importation of                       
     Sec. 601(c)(4) of the   crude petroleum fuel                 
     Revenue Act of 1932     oil and liquid derivatives           

a.   Radio sets,             Sale or use of chassis,              
     phonographs, records,   cabinets, tubes, reproducing         
     etc.                    units, power packs,                  
     Sec. 607 of the         phonograph mechanisms, etc.          
     Revenue Act of          by manufacturer, producer or         
     1932                    importer                             

a.   Sporting goods, etc.    Sale of sporting goods,              
     Sec. 609 of the         games and parts of games             
     Revenue Act of 1932     by manufacturer, producer            
                             or importer                          

b.   Automobiles and         Sale or lease of                     
     motorcycles             automobile chassis                   
     Sec. 606(b) of the      and bodies and motorcycles           
     Revenue Act of 1932                                          

a.   Gasoline                Sale or use of                       
     Sec. 617 of the         gasoline by producer                 
     Revenue Act of          or importer                          
     1932, as amended                                             

a.   Gasoline, etc. imports  Importation of                       
     Sec. 601(c)(4) of the   gasoline or other                    
     Revenue Act of 1932     motor fuel                           

b.   Automobile              Sale of parts                        
     accessories, etc.       and accessories for                  
     Sec. 606(c) of the      automobiles, trucks and motorcycles  
     Revenue Act of 1932     by manufacturer, producer or importer

***  Tires and inner tubes   Sale or use of                       
     Sec. 602 of the         tires wholly or in                   
     Revenue Act of 1932     part of rubber by                    
                             manufacturer,                        
                             producer or                          
                             importer                             
                             Sale or use of inner tubes           
                             (for tires) wholly                   
                             or in part of rubber                 
                             by manufacturer,                     
                             producer or importer                 

***  Sales of produce        Sales, agreements of sale            
     for future delivery     or to sell any products              
     Schedule A, Title       or merchandise at or                 
     VIII of the             under rules and usages of            
     Revenue Act of 1926,    any exchange, board of               
     as amended              trade or similar                     
                             place for future delivery            
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[Part 2 of 2]

     Group B - Taxes occupying an intermediate position between
      Groups A and C and which should not be eliminated before
                          those in Group A

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         Tax and legal                               
            citation                   Rate          

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a.   Brewer's wort and       Brewer's wort -- 15     
     malt products           cents per gallon        
     Sec. 601(c)(2) of       Malt products -- 3 cents
     the Revenue Act         per pound               
     of 1932                                         

d.   Refining or             1/25 of 1 cent per      
     processing of crude     barrel of 42 gallons    
     petroleum                                       
     Sec. 605(a)(1) of the                           
     Revenue Act of 1934,                            
     as amended                                      

a.   Transportation of       4% of amount paid       
     oil by pipe line        for transportation      
     Sec. 731 of the                                 
     Revenue Act of 1932                             

d.   Producing or            1/25 of 1 cent per      
     recovering gasoline     barrel of 42 gallons    
     from natural gas                                
     Sec. 605(a)(2) of                               
     the Revenue Act                                 
     of 1934, as amended                             

d.   Sale of crude           1/25 of 1 cent per      
     petroleum               barrel of 42 gallons    
     Sec. 604 of the                                 
     Revenue Act of                                  
     1934, as amended                                

a.   Crude petroleum, etc.   1/2 cent per gallon     
     Sec. 601(c)(4) of the                           
     Revenue Act of 1932                             

a.   Radio sets,             5% of sale price        
     phonographs, records,                           
     etc.                                            
     Sec. 607 of the                                 
     Revenue Act of                                  
     1932                                            

a.   Sporting goods, etc.    10% of sale price       
     Sec. 609 of the                                 
     Revenue Act of 1932                             

b.   Automobiles and         3% of sale price        
     motorcycles                                     
     Sec. 606(b) of the                              
     Revenue Act of 1932                             

a.   Gasoline                1 cent per gallon       
     Sec. 617 of the                                 
     Revenue Act of                                  
     1932, as amended                                

a.   Gasoline, etc. imports  2-1/2 cents per gallon  
     Sec. 601(c)(4) of the                           
     Revenue Act of 1932                             

b.   Automobile              2% of sale price        
     accessories, etc.                               
     Sec. 606(c) of the                              
     Revenue Act of 1932                             

***  Tires and inner tubes   2-1/4 cents per pound   
     Sec. 602 of the                                 
     Revenue Act of 1932                             

                             4 cents per pound       

***  Sales of produce        3 cents on each $100 or 
     for future delivery     fraction thereof        
     Schedule A, Title                               
     VIII of the                                     
     Revenue Act of 1926,                            
     as amended                                      

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                         FOOTNOTES TO TABLE

     Expires on June 30, 1937.

     Expires on July 31, 1937.

     Important changes in rate or base become effective after June
30, 1937.

     Enacted by Revenue Act of 1932 or subsequent acts and is without
expiration date.

     Enacted prior to 1932 and is without expiration date.

                          END OF FOOTNOTES

[Part 1 of 2]

    Group C - Taxes weighted against special classes of consumers
  and which should not be eliminated before those in Groups A and B

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           Tax and legal                    Measure and            
             citation                      basis of tax            

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d.   Use of safe                Use of safe deposit                
     deposit boxes              boxes, that is any vault,          
     Sec. 741 of the            safebox or receptacle of           
     Revenue Act of 1932        more than 40 cubic                 
                                ft. capacity used                  
                                for safekeeping or                 
                                storage of                         
                                valuable property                 

a.   Mechanical refrigerators   Sale of mechanical                 
     Sec. 608 of the            household type refrigerators       
     Revenue Act of 1932        and certain components             
                                thereof by manufacturer,           
                                producer or importer               

a.   Cameras and lenses         Sale of cameras                    
     Sec. 611 of the            (except serial cameras)            
     Revenue Act of 1932        weighing not more than             
                                100 pounds, end of                 
                                lenses for such cameras by         
                                manufacturer, producer or          
                                importer                           

e.   Club dues, etc.            Dues or membership                 
     Sec. 501 of the            fees to any social,                
     Revenue Act of             athletic or sporting club or       
     1926, as amended           organization if dues               
                                of an active resident annual       
                                member are in excess               
                                of $25 per year; or, initiation fee
                                to such organization if such fee is
                                in excess of $10 or                
                                dues to such organization          
                                are in excess of $25 per year      

e.   Passage tickets            Passage tickets sold or issued     
     Schedule A, Title          in the United States for           
     VIII of the                passage by any vessel              
     Revenue Act of 1926,       to a port or place not in the      
     as amended                 United States, Canada, Mexico, or  
                                Cuba                               

e.   Playing cards              Playing cards manufactured,        
     Schedule A, Title          imported, sold or removed          
     VIII of the Revenue        for consumption or sale            
     Act of 1926                                                   

a.   Chewing gum                Sale of chewing gum                
     Sec. 614 of the Revenue    or substitutes by manufacturer,    
     Act of 1932                producer or importer               

a.   Articles made of fur       Sale of articles                   
     Sec. 604 of the Revenue    made of fur on the                 
     Act of 1932, as amended    hide or pelt, and articles         
                                of which such fur                  
                                is the component material          
                                of chief value                     

a.   Firearms, shells, etc.     Sale of firearms, shells           
     Sec. 610 of the            and cartridges by manufacturer,    
     Revenue Act of 1932        producer, or importer              

a.   Toilet preparations        Sale of perfumes,                  
     (items subject to          essences, cosmetics,               
     10% rate only)             pomades, hair dyes, etc.           
     Sec. 603 of the                                               
     Revenue Act of 1932                                           

c.   Transfer of capital stock  Sales, agreements to               
     Schedule A, Title          sell, memoranda of sales,          
     VIII of the Revenue        transfer of legal title to         
     Act of 1926, as amended    shares, certificates of stock, etc.

a.   Transfer of bonds          Sales, agreements to               
     Sec. 724 of the            sell, memoranda of sales or        
     Revenue Act of 1932        deliveries of sale, or             
                                transfers of legal title           
                                to such instruments                

a.   Conveyances                Deed, instrument,                  
     Sec. 725 of the Revenue    or writing for                     
     Act of 1932                conveyance of realty               

e.   Admissions to roof         Admission to any public            
     gardens, etc.              performance for profit             
     Sec. 500(a)(5) of the      at any roof garden, cabaret,       
     Revenue Act of 1926        or similar entertainment to        
                                which the charge for admission     
                                is wholly or in part               
                                included in the price paid         
                                for refreshment, service,          
                                or merchandise                     

e.   Leases of boxes, etc.      Permanent use of, or               
     Sec. 500(a)(4) of the      lease for, boxes or seats          
     Revenue Act of 1926        in places of amusement             

e.   Pistols and revolvers      Sale or lease of                   
     Sec. 600(2) of the         pistols or revolvers by            
     Revenue Act of 1926        manufacturer, producer or          
                                importer                           

e.   Excess admission           Sales of tickets of                
     charges made by            admission by proprietors,          
     proprietors, etc.          managers or employees              
     Sec. 500(a)(3) of          of opera houses theatres or        
     the Revenue Act of 1932    other places of amusement for      
                                amounts in excess of               
                                the regular or established         
                                price therefor                     

***  Tickets of admission sold  Sales of tickets for               
     at places other than       an amount in excess of the         
     the ticket office of       sum of the established price       
     the theatre, etc.          therefor plus the amount of        
     Sec. 500(a)(2) of the      the tax upon the admission charge  
     Revenue Act of                                                
     1932 as amended                                               

***  Transfers of interests     Transfers of interests             
     in silver bullion          in silver bullion                  
     Schedule A, Title VIII                                        
     of the Revenue Act                                            
     of 1926, as amended                                           

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[Part 2 of 2]

    Group C - Taxes weighted against special classes of consumers
  and which should not be eliminated before those in Groups A and B

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           Tax and legal                                     
             citation                       Rate             

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d.   Use of safe                10% of rental charge         
     deposit boxes                                           
     Sec. 741 of the                                         
     Revenue Act of 1932                                     

a.   Mechanical refrigerators   5% of sale price             
     Sec. 608 of the                                         
     Revenue Act of 1932                                     

a.   Cameras and lenses         10% of sale price            
     Sec. 611 of the                                         
     Revenue Act of 1932                                     

e.   Club dues, etc.            10% of amount paid           
     Sec. 501 of the                                         
     Revenue Act of                                          
     1926, as amended                                        

e.   Passage tickets            Tickets costing more         
     Schedule A, Title          than $10 but not exceeding   
     VIII of the                $30---$1 Tickets costing     
     Revenue Act of 1926,       more than $30 but            
     as amended                 not exceeding $60---$3       
                                Tickets costing more         
                                than $60---$5                

e.   Playing cards              10 cents per pack            
     Schedule A, Title          containing not more than     
     VIII of the Revenue        54 cards                     
     Act of 1926                                             

a.   Chewing gum                2% of sale price             
     Sec. 614 of the Revenue                                 
     Act of 1932                                             

a.   Articles made of fur       3% of sale price             
     Sec. 604 of the Revenue                                 
     Act of 1932, as amended                                 

a.   Firearms, shells, etc.     10% of sale price            
     Sec. 610 of the                                         
     Revenue Act of 1932                                     

a.   Toilet preparations        10% of sale price            
     (items subject to                                       
     10% rate only)                                          
     Sec. 603 of the                                         
     Revenue Act of 1932                                     

c.   Transfer of capital stock  4 cents per $100 par         
     Schedule A, Title          or face value or             
     VIII of the Revenue        fraction; or if without      
     Act of 1926, as amended    par or face value 4 cents    
                                per share. However,          
                                if selling price is $20      
                                or over, whether             
                                with or without par or       
                                face value rate is           
                                5 cents instead of 4 cents.  

a.   Transfer of bonds          4 cents per each $100        
     Sec. 724 of the            or fraction thereof of       
     Revenue Act of 1932        face value                   

a.   Conveyances                Value of property            
     Sec. 725 of the Revenue    conveyed over $100 and       
     Act of 1932                not over $500--50            
                                cents Each additional        
                                $500 or fraction             
                                thereof--------50 cents      

e.   Admissions to roof         1-1/2 cents for each 10 cents
     gardens, etc.              or fraction of admission     
     Sec. 500(a)(5) of the      charge which is deemed to be 
     Revenue Act of 1926        20% of total paid for        
                                refreshments, service and    
                                merchandise                  

e.   Leases of boxes, etc.      10% of the established       
     Sec. 500(a)(4) of the      price for which similar      
     Revenue Act of 1926        seat or box is sold for each 
                                performance or exhibition    
                                at which the box or seat     
                                is used or reserved for      
                                the lessee or holder         

e.   Pistols and revolvers      10% of sale price            
     Sec. 600(2) of the                                      
     Revenue Act of 1926                                     

e.   Excess admission           50% of the excess charge     
     charges made by                                         
     proprietors, etc.                                       
     Sec. 500(a)(3) of                                       
     the Revenue Act of 1932                                 

***  Tickets of admission sold  10% of the excess charge     
     at places other than                                    
     the ticket office of                                    
     the theatre, etc.                                       
     Sec. 500(a)(2) of the                                   
     Revenue Act of                                          
     1932 as amended                                         

***  Transfers of interests     50% of the excess of the     
     in silver bullion          price for which the          
     Schedule A, Title VIII     interest is transferred over 
     of the Revenue Act         the sum of the cost of       
     of 1926, as amended        such interest plus           
                                allowed expenses             
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                         FOOTNOTES TO TABLE

     Expires on June 30, 1937.

     Expires on July 31, 1937.

     Important changes in rate or base become effective after June
30, 1937.

     Enacted by Revenue Act of 1932 or subsequent acts and is without
expiration date.

     Enacted prior to 1932 and is without expiration date.

     ***: The following regulatory taxes which have not been ranked
should be continued: Narcotics (Harrison Narcotic Law, as amended);
Adulterated butter (Act of May 9, 1902); Process or renovated butter
(Act of May 9, 1902); Mixed flour (Act of June 13, 1898); Filled
cheese (Act of June 6, 1896); Oleomargarine (Act of August 2, 1886 as
amended); White phosphorous matches (Act of April 9, 1912); Cotton
futures (United States Cotton Futures Act, August 11, 1916);
Circulation of State bank notes (Sec. 19 and 20, Act of February 8,
1875 (18 Stat. 311)); Firearms and machine guns (National Firearms
Act as amended).

     Similarly, the tax on premiums of foreign insurance policies
(Schedule A, Title VIII of the Revenue Act of 1926) has not been
ranked and should be continued.

                          END OF FOOTNOTES

FOOTNOTES

/1/ Further, under the Revenue Acts of 1924-28 the earned income credit was allowed as a credit against the total normal and surtax; no earned income credit was allowed under the Acts prior to 1924 nor in 1932; and the earned income credit under the Revenue Acts of 1934-36 not only was at a different rate than in the Revenue Acts of 1924-28 but was differently applied--the earned income credit under these Acts was a credit against net income and was allowed for normal tax purposes only.

/2/ This tax was added by Section 1, Chapter 40, Statutes of 1935, assented to June 28, 1935. The new tax is applicable to income of the 1934 taxation period and fiscal periods ending therein and of all subsequent periods. - Section 16, Chapter 40, Statutes of 1935.

END OF FOOTNOTES