"(A) In general.-The deduction under subsection (a) for any taxable year shall not exceed "(i) $133 times the number of months during the taxable year during which the taxpayer is a student and is not the holder of a bachelor's degree, plus “(ii) $166 times the number of months during the taxable year during which the taxpayer is a student and is the holder of a bachelor's degree. For purposes of clauses (i) and (ii), a month during which the taxpayer is a student for less than 15 days shall be disregarded. "(B) Maximum amounts deductible.-The deduction under subsection (a) for any taxable year shall not exceed "(i) $1,200, in the case of a stuIdent who is not the holder of a bachelor's degree at the close of the taxable year, or who has been the holder of a bachelor's degree for less than 3 months at the close of the taxable year, and “(ii) $1,500, in the case of a student who has been the holder of a bachelor's degree for 3 months or or more at the close of the taxable year. "(2) Meals and lodging.—No deduction shall be allowed under subsection (a) for any amount paid, directly or indirectly, for meals or lodging. In the event an amount paid for tuition or fees includes an amount for meals or lodging which is not separately stated, the portion of such amount paid which is attributable to meals or lodging shall be determined under regulations prescribed by the Secretary or his delegate. "(3) Certain noncredit courses. - "(A) In general.-For purposes of subsection (a) the amounts paid for tuition and fees required for the taxpayer's enrollment or matriculation at an institution of higher education shall be reduced by the portion of such amounts which is attributable to any course which is not a course of instruction within the meaning of subsection (d)(1). The portion of such tuition and fees which is attributable to any course shall be determined under regulations prescribed by the Secretary or his delegate. ་(B) Exception.-Subparagraph (A) shall not apply to any course which the taxpayer is required to take by the institution of higher education. "(4) Fees, etc.-The determination of what fees, books, supplies, and equipment are required for any course of instruction shall be made under regulations prescribed by the Secretary or his delegate. "(c) Reduction for Certain Scholarships and Veterans' Benefits.-The amount otherwise allowable as a deduction under subsection (a) (after the application of subsection (b)) shall be reduced by any amounts received by the taxpayer during the taxable year as "(1) a scholarship or fellowship grant (within the meaning of section 117(a)(1)) which under section 117 is not includible in gross income, and “(2) education and training allowance under chapter 33 of title 38 of the United States Code or educational assistance allowance under chapter 35 of such title. "(d) Definitions.-For purposes of this subsection "(1) Course of instruction.-The term 'course of instruction' means only a course for the successful completion of which credit is allowed toward a baccalaureate or higher degree by an institution of higher education authorized to confer such degree. "(2) Institution of higher education. The term 'institution of higher education' means an educational institution (as defined in sec. 151(e) (4))— "(A) which is accredited by a recognized national or regional accrediting agency or, if not so accredited, is an institution whose credits are accepted, on transfer, by not less than three institutions which are so accredited, for credit on the same basis if transferred from an institution so accredited, and "(B) (i) which is authorized to confer any baccalaureate or higer degree, or (ii) the curriculum of which consists of courses at least two-thirds of which are courses of instruction within the meaning of paragraph (1). "(3) Student.-The term 'student' means an individual who is regularly enrolled in one or more courses of instruction at an institution of higher education. "(e) Exception.-Subsection (a) shall not apply to any amount paid which is allowable as a deduction under section 162 (relating to trade or business expenses)." (b) The table of sections for such part VII is amended by striking out the last item therein and inserting the following: "Sec. 217. Certain expenses for college education. "Sec. 218. Cross references." On motion by Mr. LONG of Louisiana to reconsider the vote disagreeing to the amendment, as modified, proposed by Mr. PROUTY (for himself and others), On motion by Mr. KUCHEL, The yeas and nays, being desired by one-fifth of the Senators present, were ordered on the question of agreeing to the motion. On motion by Mr. SMATHERS to lay on the table the motion of Mr. LONG of Louisiana to reconsider the vote by which the amendment, as modified, proposed by Mr. PROUTY (for himself and others) was not agreed to, It was determined in (Yeas_____ 46 the affirmative_____ - Nays... Nays----- 45 On motion by Mr. PASTORE, The yeas and nays being desired by one-fifth of the Senators present. Senators who voted in the affirmative Aiken Allott Beall Bennett Boggs Brewster Carlson Case Cooper Cotton Hickenlooper Hruska Jackson Javits Jordan, Idaho Keating Kennedy Senators who voted in the affirmative Curtis Dodd are Dominick Kuchel Lausche Mechem Miller Morton Moss Nelson Pearson Pell Prouty Proxmire Ribicoff Tower Williams, Del. Young, N. Dak. Brewster Kuchel Lausche Magnuson Mechem Prouty Proxmire Ribicoff Russell Scott Smith Williams, Del. Young, N. Dak. So the motion to reconsider was laid on the table. Pending debate, On motion by Mr. GORE to further amend the bill in various places by inserting provisions relating to increasing exemptions in personal income tax and changing corporate tax rates, Pending debate, Carlson Case Cooper Cotton Curtis Dodd Miller Morton On motion by Mr. GORE, The yeas and nays, being desired by one-fifth of the Senators present, were ordered on the question of agreeing to the amendment. On motion by Mr. MANSFIELD, and by unanimous consent. Ordered, That there be allotted 30 minutes for debate on the amendment, to be equally divided and controlled by Mr. GORE and Mr. LONG of Louisiana. Pending debate, On motion by Mr. LONG of Louisiana to lay the amendments proposed by Mr. GORE on the table, It was determined in Yeas_____ 61 the affirmative__ Nays---- 33 The yeas and nays having been heretofore ordered. Senators who voted in the affirmative So the amendments proposed by Mr. Gore were laid on the table. On motion by Mr. DoUGLAS, and by unanimous consent, Ordered, That the first order of business tomorrow in the consideration of amendments to be proposed by him. On motion by Mr. MORTON (for himself and Mr. DIRKSEN) to further amend the bill by striking out all on line 2, page 28, down to and including line 2 on page 32 and inserting in lieu thereof other words, on dividends received by individuals, On motion by Mr. MORTON, The yeas and nays, being desired by one-fifth of the Senators present, were ordered on the question of agreeing to the amendment. On motion by Mr. MANSFIELD, and by unanimous consent, Ordered, That there be a limitation of debate of 1 hour on the pending amend'ment and all amendments thereto to be equally divided and controlled by Mr. MORTON and Mr. McCARTHY. After debate, The question being taken on agreeing to the amendment proposed by Mr. MORTON (for himself and Mr. DIRKSEN), viz, strike out all on line 2, page 28, down to and including line 2 on page 32, as follows: SEC. 201. DIVIDENDS RECEIVED BY INDIVIDUALS (a) REDUCTION OF 4 PERCENT CREDIT TO 2 PERCENT CREDIT FOR CALENDAR YEAR 1964. "(1) GENERAL RULE.-Section 34(a) (relating to general rule for credit for dividends received) is amended by striking out 'an amount equal to 4 percent of the dividends which are received after July 31, 1954, from domestic corporations and are included in gross income' and inserting in lieu thereof: "'an amount equal to the following percentage of the dividends which are received from domestic corporations and are included in gross income: "(1) 4 percent of the amount of such dividends which are received before January 1, 1964, and "(2) 2 percent of the amount of such dividends which are received during the calendar year 1964.' 34(b) "(2) LIMITATIONS.-Section (2) (relating to limitations on amount of credit) is amended "(A) by inserting ', or beginning after December 31, 1963' after '1955' at the end of subparagraph (A), and "(B) by inserting', and beginning before January 1, 1964' after '1954' at the end of subparagraph (B). "(b) REPEAL OF CREDIT FOR DIVIDENDS RECEIVED BY INDIVIDUALS.-Effective with respect to dividends received after December 31, 1964, section 34 (relating to dividends received by individuals) is hereby repealed. "(c) DOUBLING OF AMOUNT OF PARTIAL EXCLUSION FROM GROSS INCOME OF DIVIDENDS RECEIVED BY INDIVIDUALS.-Section 116(a) (relating to partial exclusion from gross income of dividends received by individuals) is amended by striking out "$50" each place it appears and inserting in lieu thereof "$100". "(d) CONFORMING AMENDMENTS.— "(1) The table of sections for subpart A of part IV of subchapter A of chapter 1 is amended by striking out "Sec. 34. Dividends received by individuals.' "(2) Section 35 (b) (1) is amended by striking out 'the sum of the credits allowable under sections 33 and 34' and inserting in lieu thereof 'the credit allowable under section 33'. "(3) Section 37(a) is amended by striking out 'section 34 (relating to credit for dividends received by individuals),'. "(4) Section 46(a) (3) is amended by striking out subparagraph (B), and by redesignating subparagraphs (C) and (D) as '(B)' and '(C)', respectively. "(5) Section 584 (c) (2) is amended by striking out 'section 34 or'. "(6) (A) Section 642(a) is amended by striking out paragraph (3); "(B) Section 642(i) is amended to read as follows: "(i) CROSS REFERENCES. 66 ""(1) For disallowance of standard deduction in case of estates and trusts, see section 142(b) (4). 66 6 (2) For special rule for determining the time of receipt of dividends by a beneficiary under section 652 or 662, see section 116(c) (3).' "(C) Section 116(c) is amended by adding at the end thereof the following new paragraph: (3) The amount of dividends properly allocable to a beneficiary under section 652 or 662 shall be deemed to have been received by the beneficiary ratably on the same date that the dividends were received by the estate or trust.' "(7) Section 702 (a) (5) is amended by striking out 'a credit under section 34,' and the comma after 'section 116'. "(8) Section 854(a) is amended by striking out 'section 34(a) (relating to credit for dividends received by individuals),' and the comma after 'section 116 (relating to an exclusion for dividends received by individuals)'. "(9) Section 854(b) (1) is amended by striking out 'the credit under section 34(a),' and the comma after 'section 116'. "(10) Section 854(b) (2) is amended by striking out 'the credit under section 34,' and the comma after 'section 116'. "(11) Section 857(c) is amended by striking out 'section 34(a) (relating to credit for dividends received by individuals),' and the comma after 'section 116 (relating to an exclusion for dividends received by individuals)'. "(12) Section 871 (b) is amended by striking out 'the sum of the credits under sections 34 and 35' and inserting in lieu thereof 'the credit under section 35'. "(13) Section 1375 (b) is amended by striking out 'section 34,' and the comma after 'section 37'. "(14) Section 6014(a) is amended by striking out '34 or'. "(e) EFFECTIVE DATES.-The amendments made by subsection (a) shall apply with respect to taxable years ending after December 31, 1963. The amendment made by subsection (b) shall apply with respect to taxable years ending after December 31, 1964. The amendment made by subsection (c) shall apply with respect to taxable years beginning after December 31, 1963. The amendments made by subsection (d) shall apply with respect to dividends received after December 31, 1964, in taxable years ending after such date." and insert in lieu thereof the following: "Sec. 201. Dividends Received by Individuals. "(a) Limitation of Credit to $300.— Section 34(b) (relating to limitation on amount of credit for dividends received by individuals) is amended "(1) by striking out 'the lesser' and inserting in lieu thereof 'the lowest; "(2) by striking out 'or' at the end of paragraph (1); “(3) by striking out the period at the end of paragraph (2) and inserting in lieu thereof '; or '; and "(4) by adding after paragraph (2) the following new paragraph: "'(3) $300 ($150, in the case of a married individual filing a separate return) .’ "(b) Doubling of Amount of Partial Exclusion From Gross Income of Dividends Received by Individuals.-Section 116(a) (relating to partial exclusion from gross income of dividends received by individuals) is amended by striking out '$50' each place it appears and inserting in lieu thereof '$100'. "(c) Effective date.-The amendments made by subsections (a) and (b) shall apply with respect to taxable years beginning after December 31, 1963." It was determined in/Yeas_____ the negative_‒‒‒‒. Nays--- 44 47 On motion by Mr. MANSFIELD, and by unanimous consent, Ordered, That on Wednesday, February 5, 1964, upon the convening of the Senate, it proceed to the consideration of the amendment (No. 411) relating to standard deductions, intended to be proposed by Mr. DOUGLAS to the pending bill; that the debate on said amendment be limited to 1 hour, to be equally divided and controlled by Mr. DOUGLAS and Mr. LONG of Louisiana for the proponents and the opponents, respectively; that any amendment proposed thereto must be germane to such amendment, and that debate upon any such amendment shall be limited to 30 minutes, to be equally divided and controlled by the mover of such amendment and Mr. DOUGLAS. Ordered further, That following the disposition of the Douglas amendment, amendments intended to be proposed, respectively, by Mr. DIRKSEN, Mr. PROXMIRE, and Mr. HICKENLOOPER, be taken up for consideration. Pending debate, On motion by Mr. MANSFIELD, and by unanimous consent, Ordered, That when the Senate recesses tonight it be to meet at 10 o'clock a.m. tomorrow. COMPILATION OF CERTAIN STATEMENTS AND SPEECHES OF THE LATE JOHN F. KENNEDY Mr. MANSFIELD (for himself and Mr. DIRKSEN), by unanimous consent, submitted the following resolution (S. Res. 294): Resolved, That the 88th Congress, 2d session, authorize that there shall be printed as a Senate document a compilation, to be prepared by the Legislative Reference Service, Library of Congress, of statements and speeches of John Fitzgerald Kennedy which were made in the Senate and House of Representatives during the time the late President was serving as a Senator and Congressman, respectively. The Senate proceeded, by unanimous consent, to consider the said resolution; and to. Resolved, That the Senate agree there ENROLLED BILL PRESENTED The Secretary reported that he presented to the President of the United States the enrolled bill (S. 2265) to amend the Library Services Act in order to increase the amount of assistance under such act and to extend such assistance to nonrural areas. RECESS On motion by Mr. MANSFIELD, at 7 o'clock and 55 minutes p.m., The Senate, under its order of today, took a recess until 10 o'clock a.m. tomorrow. WEDNESDAY, FEBRUARY 5, 1964 (Legislative day of Tuesday, February 4, 1964) The ACTING PRESIDENT pro tempore called the Senate to order at 10 o'clock a.m., and Rev. Richard P. Newby, of Muncie, Ind., offered prayer. THE JOURNAL On motion by Mr. MANSFIELD, and by unanimous consent, The Journal of the proceedings of Tuesday, February 4, 1964, was approved. REVENUE ACT OF 1964 The Senate resumed the consideration of its unfinished business, viz, the bill (H.R. 8363) to amend the Internal Revenue Code of 1954 to reduce individual and corporate income taxes, to make certain structural changes with respect to the income tax, and for other purposes. The question being taken on agreeing to the amendment proposed by Mr. DOUGLAS, as follows: On page 8, line 8, insert 10-percent immediately after "The". On page 8, line 10, insert 10-percent immediately before “standard”. On page 8, line 11, insert after the period the following new sentence: The minimum standard deduction shall not exceed $1,800, except that in the case of a separate return by a married individual the minimum standard deduction shall not exceed $900. On page 9, line 3, strike out "$100" and insert $200. On page 13, line 14, strike out "28 percent" and insert 29 percent. On page 13, line 17, strike out "26 percent" and insert 28 percent. On pages 353 through 362, revise the tables contained therein so as to reflect the changes made by this amendment with respect to the minimum standard deduction. It was determined in Yeas_____ 23 the negative‒‒‒‒‒ Nays---. 71 The yeas and nays having been heretofore ordered. After debate, The question being taken on agreeing to the amendment, as modified, proposed by Mr. MORTON (for himself and Mr. DIRKSEN), viz, at the proper place in the bill insert the following new section: TITLE IV-EXCISE TAXES Sec. 401. Retailers Excise Taxes. (a) Limitation of Tax on Jewelry and Related Items.-Section 4001 (relating to imposition of tax on jewelry and related items) is amended by inserting after "10 percent of the price for which so sold" the following: ", to the extent such price exceeds $100". (b) Limitation of Tax on Furs.-Section 4011 (relating to imposition of tax on furs) is amended by inserting after "10 percent of the price for which so sold" the following: ", to the extent such price exceeds $100". (c) Repeal of Tax on Toilet Preparation. Chapter 31 (relating to retailers excise taxes) is amended by striking out subchapter C (relating to toilet preparations). (d) Repeal of Tax on Luggage, Handbags, Etc.-Chapter 31 (relating to retailers excise taxes) is amended by striking out subchapter D (relating to luggage, handbags, etc.). (e) Technical Amendments. (1) The table of subchapters for chapter 31 is amended by striking out: "Subchapter C. Toilet preparations. "Subchapter D. Luggage handbags, etc." (2) Section 4003 (relating to exemptions from tax on jewelry and related items) is amended by striking out subsection (b). (3) Subchapter B of chapter 31 is amended by striking out section 4013 (relating to exemption of certain auction sales). (4) The table of sections for subchapter B of chapter 31 is amended by striking out: "Sec. 4013. Exemption of certain auction sales." (f) Effective Date.-The amendments made by this section shall apply with respect to articles sold on or after the first day of the first month which begins after the date of the enactment of this Act. It was determined in (Yeas--the negative‒‒‒‒‒ Nays_____ The yeas and nays having been heretofore ordered. 45 48 areAiken Bartlett Bayh Bible Boggs Burdick Byrd, Va. Case Hruska Johnston Jordan, N.C. Jordan, Idaho Long, Mo. Long, La. Mansfield McGee Pearson Simpson Sparkman Stennis Tower Walters Neuberger Pell Proxmire Symington Senators who voted in the negative Jackson Javits Keating Kennedy Kuchel Lausche Magnuson McCarthy McClellan McGovern Randolph Scott Talmadge Church Dodd Hart McIntyre McNamara Metcalf Morse Moss Mundt Williams, N.J. Williams, Del. Yarborough Young, N. Dak. Young, Ohio So the motion of Mr. LONG of Louisiana was not agreed to. The question recurring on agreeing to the first branch of Mr. PROXMIRE'S motion, to strike out paragraph (1) on line 18, page 38, down to and including line 4, on page 39, as follows: "(1) in the case of public utility property (as defined in section 46(c) (3) (B) of the Internal Revenue Code of 1954), more than a proportionate part (determined with reference to the average useful life of the property with respect to which the credit was allowed) of the credit against tax allowed for any taxable year by section 38 of such Code, or" It was determined in Yeas_____ the negative_-_-_ Nays.. So the first branch of Mr. PROXMIRE'S motion was not agreed to. The question recurring on agreeing to the second branch of Mr. PROXMIRE'S motion, to strike out all on line 7, page 38, down to and including line 17, as follows: "(e) TREATMENT OF INVESTMENT CREDIT BY FEDERAL REGULATORY AGENCIES.-It was the intent of the Congress in providing an investment credit under section 38 of the Internal Revenue Code of 1954, and it is the intent of the Congress in repealing the reduction in basis required by section 48(g) of such Code, to provide an incentive for modernization and growth of private industry (including that portion thereof which is regulated). Accordingly, Congress does not intend that any agency or instrumentality of the United States having jurisdiction with respect to a taxpayer shall, without the consent of the taxpayer, use-" and to strike out all on line 5, down to and including line 9, page 39, as follows: "(2) in the case of any other property, any credit against tax allowed by section 38 of such Code, to reduce such taxpayer's Federal income taxes for the purpose of establishing the cost of service of the taxpayer or to accomplish a similar result by any other method." Bible Byrd, W. Va. Cooper Dominick Eastland Edmondson Ellender Inouye Jordan, N.C. Jordan, Idaho Monroney Randolph Saltonstall Simpson Smathers Sparkman Stennis Symington Thurmond Walters So the second branch of Mr. PROXMIRE'S motion was not agreed to. On motion by Mr. LONG of Louisiana to reconsider the vote disagreeing to the motion, On motion by Mr. MANSFIELD, The motion to reconsider was laid on the table. CONFERENCE REPORT ON S. 298 Mr. SPARKMAN submitted the following conference report: The committee of conference on the disagreeing votes of the two Houses on the amendments of the House to the bill (S. 298) to amend the Small Business Investment Act of 1958, having met, after full and free conference, have agreed to recommend and do recommend to their respective Houses as follows: That the House recede from its amendments numbered 1, 4, 6, and 7. That the Senate recede from its disagreement to the amendments of the House numbered 2, 3, and 5, and agree to the same. A. WILLIS ROBERTSON, Managers on the Part of the Senate. ABRAHAM J. MULTER, W. A. BARRETT, WILLIAM B. WIDNALL, JAMES HARVEY, Sec. Repeal of Manufacturers Excise Tax on Mechanical Pencils and Pens. (a) Repeal.-Section 4201 (relating to imposition of tax on pens and mechanical pencils, etc.) is amended by striking out subsection (a). (b) Technical Amendments. (1) The table of parts for subchapter E of chapter 32 is amended by striking out "Part II. Pens and mechanical pencils and lighters." and inserting in lieu thereof "Part II. Mechanical lighters." (2) The heading for part II of subchapter E of chapter 32 is amended by striking out "Pens and Mechanical Pencils and Lighters" and inserting in lieu thereof "Mechanical Lighters”. (3) Section 4221 (relating to certain tax free sales) is amended by striking out subsection (f). (4) Section 4222(b) (relating to exceptions from requirement of registration) is amended by striking out paragraph (4). (5) Section 6416(d) (relating to certain items taxable as jewelry) is amended by striking out "Mechanical Pencils" in the heading and inserting in lieu thereof "Certain Articles”. (c) Effective Date.-The amendments made by this section shall apply with respect to articles sold on or after the first day of the first month which begins after the date of the enactment of this Act. On motion by Mr. HICKENLOOPER, The yeas and nays, being desired by one-fifth of the Senators present, were ordered on the question of agreeing to the amendment. After debate, The question being taken on agreeing to the amendment proposed by Mr. HICKENLOOPER (for himself and Mr. DIRKSEN), 36 It was determined in (Yea- -- -the negative_‒‒‒‒ Nays______ 44 The yeas and nays having been heretofore ordered. Senators who voted in the affirmative The Senate proceeded to consider the said report; and Allott Beall Boggs Resolved, That the Senate agree there Carlson Cooper Cotton to. Ordered, That the Secretary notify the House of Representatives thereof. REVENUE ACT OF 1964 The Senate resumed the consideration of its unfinished business, viz, the bill (H.R. 8363) to amend the Internal Revenue Code of 1954 to reduce individual and corporate income taxes, to make certain structural changes with respect to the income tax, and for other purposes. On motion by Mr. HICKENLOOPER (for himself and Mr. DIRKSEN) to further amend the bill by inserting at the proper place the following new section: Dodd Gruening Hickenlooper Jackson Javits Jordan, Idaho Keating Kuchel Mechem Nelson Pastore Pearson Pell Prouty Proxmire Sparkman Tower Young, Ohio |