83D CONGRESS 1st Session SENATE { REPORT No. 609 CREATION OF COMMISSION ON JUDICIAL AND JULY 22 (legislative day, JULY 6), 1953.-Ordered to be printed Mr. CARLSON, from the Committee on Post Office and Civil Service, submitted the following REPORT [To accompany S. 2417] The Committee on Post Office and Civil Service, to whom was eferred the bill (S. 2417) to provide for the creation of a Commission n Judicial and Congressional Salaries and for other purposes, having considered the same, report favorably thereon with amendments and ecommend that the bill as amended do pass. AMENDMENTS The first committee amendment changes the rate of per diem for members of the Commission from $10 to $25. The second committee mendment increases the amount authorized to be appropriated for he expenses of the Commission from $10,000 to $20,000. Subsection (b) of section 2 has been transferred to section 3 where appears as a new subsection (a). Subsection (d) of section 3 is mitted since the substance thereof is contained in the new subsection a) of section 3. The other amendments by the committee are of a clerical and echnical nature and make no changes in the substance of the bill. CREATION OF COMMISSION FOR STUDY The purpose of this legislation is to create a commission known as he Commission on Judicial and Congressional Salaries to make a etailed study of judicial and congressional salary rates and mileage nd to report the rates so determined on or before January 15, 1954, o the President, the Chief Justice of the United States, the President f the Senate, and the Speaker of the House of Representatives, iving due consideration to (1) The qualifications desirable for members of the Federal judiciary and for the presiding officers and Members of the Congress; (2) The compensation or income currently earned by personsof comparable qualifications in labor, business, the professions, or other private pursuits; (3) The sacrifices involved in the acceptance of appointment to the Federal judiciary or of membership in the Congress, including (A) in the case of members of the Federal judiciary the interruption of private practice at the time when it is most remunerative, and the necessity for divorcing oneself from outside activities which are productive of income, and (B) in the case of Members of the Congress the interruption of a private career. the importance of preserving, to the extent possible, the Mem ber's station in his community in anticipation of the time wher he may be retired to private life, and the difficulties accompanying the resumption of a private career; (4) The interruptions to normal family life, resulting in the case of many members of the Federal judiciary from the necessity of holding court at points remote from their residences and in the case of Members of the Congress from the necessity of maintaining two domiciles, one at the seat of governmen and the other in the Member's State; and (5) In the case of Members of the Congress, the necessity o making frequent trips between the seat of government and the Member's State in order adequately to represent his constitu ents and to maintain his family relationship. COMPOSITION OF COMMISSION The Commission would be composed of 18 members, 3 to be ap pointed by the Speaker of the House, 3 by the President of the Senate 6 by the President of the United States, 1 of whom so designated by him shall be Chairman of the Commission, and 6 by the Chief Justic of the United States. Each such appointing officer shall select hi appointees in equal number from outstanding leaders in each of th following groups: (1) Labor, (2) business and professional, and (3 agriculture. In order that the Commission shall be adequately advised and t assist it in performance of its functions, there is hereby created i addition to the members provided above, 9 advisory members, of whom shall have been or who are members of the 82d or 83d Con gress, 3 to be appointed by the Speaker of the House and 3 by th President of the Senate. The remaining three advisory members sha be appointed by the Chief Justice of the United States, who are activ or retired judges or justices of courts of the United States. A advisory members shall have the rights and privileges of the othe members of the Commission except that of voting on matters befor the Commission. O 3D CONGRESS 1st Session } SENATE { REPORT XTENDING THE TIME FOR EXEMPTION FROM INCOME TAXES FOR CERTAIN MEMBERS OF THE ARMED FORCES JULY 22 (legislative day, JULY 6,) 1953.-Ordered to be printed fr. MILLIKIN, from the Committee on Finance, submitted the following REPORT [To accompany H. R. 4152] The Committee on Finance, to whom was referred the bill (H. R. 152) to extend the time for exemption from income taxes for certain embers of the Armed Forces, having considered the same, report vorably thereon with amendments and recommend that the bill as mended do pass. The amendments are as follows: Add at the end thereof a new section reading as follows: SEC. 3. (a) That the third sentence of section 25 (b) (3) of the Internal Revenue de, relating to the definition of dependent, is amended to read as follows: "For purposes of determining whether any of the foregoing relationships exist (1) ally adopted child of a person or (2) a child for which petition for adoption filed by a person in the appropriate court and denied because of mental incaity of surviving natural parent to agree to such adoption, shall be considered ild of such person by blood." The provisions of subsection (a) shall be applicable to taxable years Kianing after December 31, 1945. Amend the title so as to read: A bill to extend the time for exemption from income taxes for certain members the Armed Forces, and for other purposes. GENERAL STATEMENT Sections 1 and 2 of the bill extend for 1 year the existing provisions section 22 (b) (13) of the Internal Revenue Code which exclude om taxable income the compensation of members of the Armed orces of the United States received for active service in combat ones such as Korea, or hospitalized as a result of wounds, disease, injury incurred while serving in a combat zone. This exclusion overs all the pay of enlisted men and warrant officers and the first $200 per month paid to commissioned officers. The present exclusion only applies to services performed after June 24, 1950, and prior t January 1, 1954. This bill continues the exclusion for 1 year beyonc its present termination date to January 1, 1955. Ás under existing law, if combatant activities in the Korean combat zone cease before the expiration date, the benefits of the exemption from income tax would terminate on the date designated by th President by Executive order as the date of termination of combatan activities in the zone. Section 3 of the bill relates to a definition of a dependent for income tax purposes. Under section 25 (b) (3) of the Internal Revenue Code: child, in order to be claimed as a dependent by the person claiming th exemption, must be either legally adopted by such person or must be child by blood of such person. In some cases it has developed tha the person supporting a child has filed a petition for its adoption i the appropriate court but such petition has been denied because ( the mental incapacity of the surviving natural parent to agree to th adoption. Your committee is of the opinion that in such cases th person supporting the child who has filed a petition for adoption i the appropriate court should not be denied the right to claim th child as a dependent because of the mental incapacity of the survivin natural parent to agree to such adoption. Accordingly, this sectio treats such a child as a dependent of the person filing the petition fo adoption if such person meets the required support test in sectic 25 (a) (3) of the Internal Revenue Code. CHANGES IN EXISTING LAW In compliance with subsection (4) of rule XXIX of the Standin Rules of the Senate, changes in existing law made by the bill, H. 1 3168, as reported, are shown as follows (existing law proposed to } omitted is enclosed in black brackets, new matter is printed in italic existing law in which no change is proposed is shown in roman): (b) EXCLUSIONS FROM GROSS INCOME.-The following items shall not included in gross income and shall be exempt from taxation under this chapter: * * * * * (13) Additional allowance for certain members of the Armed Forces.(A) ENLISTED PERSONNEL.-Compensation received for active service a member below the grade of commissioned officer in the armed forces of t United States for any month during any part of which such member (i) served in a combat zone after June 24, 1950, and prior to Januɛ 1, [1954] 1955, or (ii) was hospitalized as a result of wounds, disease, or injury incuri while serving in a combat zone prior to January 1, [1954] 1955; I this clause shall not apply for any month during any part of which th are no combatant activities in any combat zone as determined un subparagraph (C) (iii) of this paragraph. (B) COMMISSIONED OFFICERS.-So much of the compensation as does 1 exceed $200 received for active service as a commissioned officer in the arm forces of the United States for any month during any part of which si officer (i) served in a combat zone after June 24, 1950, and prior to Janu 1, [1954] 1955, or (ii) was hospitalized as a result of wounds, disease, or injury incurred while serving in a combat zone prior to January 1, [1954] 1955; but this clause shall not apply for any month during any part of which there are no combatant activities in any combat zone as determined under subparagraph (C) (iii) of this paragraph. (C) DEFINITIONS.-For the purposes of this paragraph (i) the term "commissioned officer" does not include a commissioned warrant officer; (ii) the term "combat zone" means any area which the President of the United States by Executive Order designates, for the purposes of this paragraph, as an area in which Armed Forces of the United States are or have (after June 24, 1950) engaged in combat; (iii) service is performed in a combat zone only if performed on or after the date designated by the President by Executive Order as the date of the commencing of combatant activities in such zone, and on or before the date designated by the President by Executive Order as the date of the termination of combatant activities in such zone, except that June 25, 1950, shall be considered the date of the commencing of combatant activities in the combat zone designated in Executive Order 10195; and (iv) the term "compensation" does not include pensions and retirement pay. EC. 25. (a) (3) Definition of dependents. For the purposes of determining whether any of the foregoing relationships rist (1) a legally adopted child of a person or (2) a child for which petition for doption was filed by a person in the appropriate court and denied because of mental kapacity of surviving natural parent to agree to such adoption, shall be considered child of such person by blood. SUBCHAPTER D-COLLECTION OF INCOME TAX AT SOURCE ON WAGES EC. 1621. DEFINITIONS. As used in this subchapter (a) WAGES.-The term "wages" means all remuneration (other than fees paid a public official) for services performed by an employee for his employer, cluding the cash value of all remuneration paid in any medium other than cash; cept that such term shall not include remuneration paid (1) for active service as a member of the armed forces of the United States performed prior to January 1, [1954] 1955, in a month for which such member is entitled to the benefits of section 22 (b) (13), or |