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GOP Favors Bill To Tax Certain College Holdings

NO WRITER ATTRIBUTED

Passage by Congress of legislation to tax certain business activities of universities appeared likely last night as two Republican leaders told the CRIMSON that the administration's proposal had bipartisan support. The question remained whether the registration would be fitted into the crowded Congressional calendar this session.

Senator Robert A. Taft said that he was "surprised" when he learned that the law permitted a university to operate a business in competition with others without paying taxes. "There is some question," he said, "as to the extent of the taxation" in special cases but he added that educational institutions should pay the same taxes as businesses competing with them.

House Minority leader Joseph W. Martin said that there was "no partisan division" in the House Ways and Means Committee on the question. The Committee now has the bill in executive session and is expected to report favorably on it in the near future.

The Association of American Universities last week asked educational institutions to avoid investment practices that could be interpreted as taking improper advantage of tax exemption privileges. The association, however, contends it is entirely proper for an educational institution to buy a business and then lease it back to the seller.

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