The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1936-04-11
New Deal May Ask Con-
greSs to Hold Up Levies,
Is Report.
CITE BUSINESS BURDEN
Plan Would Smooth Path
for New Surplus Tax
Bill, Is View.
By United Press

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WASHINGTON, April IL.
The New Deal, in an effort
to alleviate the immediate
burden of the proposed sur
plus tax on business, is con-
sidering asking Congress to
postpone imposition of social
security levies.
The proposal, it was learned from
a high Administration source, to
either delay the security tax collec-
tons or revise the schedule for an
nually increased levies under the
program to give security to unem-
ployed and the aged, has reached
the discussion" stage.
John Gilbert Winant. chairman
of the Social Security Board, said "a
suggestion of that sort was made
probably two months ago, but the
board does not have it under con-
slderation at present. Some time be-
fore long we expect to go over all
our problems as a whole and it is
likely that suggestion will be in
cluded in the discussion.
However" he added, sit is only a
suggestion. There is nothing thought
out about it."
Business Protests Recalled
Discussion of the proposal to
tighten the tax burden was en-
phasized by recent protests of or
ganized business against the pro-
posed 1891 100000 corporate undis-
tributed profits tax, keystone of
President Roosevelt's program for
balancing the ordinary budget.
Under the Social Security Law
more than $228,000000 is due to
flow into state and Federal treas
uries after next Jan. l, for unem-
ployment insurance. The act also
imposes tax, effective during the
next calendar year. to raise $278,-
100000 for contributory old-age
pensions.
The two taxes, under the act.
graduate upward until by 1850 in.
dustry and workers would be con-
tributing a 80 per cent pay roll levy
for security purposes, or approx
mately $4,000 900, 900 annually.
Double Tax Held Burden
Representatives of business, in
opposing the $799, 100000 budget
tax bill before the House Ways and
Means Committee, said the security
taxes would impose a heavy bur-
den on industry, and that the dou-
BILE imposition of the proposed
profits levy would seriously affect
the financial status of many.
The profits tax, as agreed on ten
tatively by Ways and Means Com
mittee Democrats. is designed to
force corporations to pay increased
dividends. instead of piling up
large partially untaxable reserves.
The Social Security Act requires
companies to set aside from this
years pay roll for unemployment
insurance programs l per cent of
the total wages paid. A credit of 90
per cent of this tax is allowed
where state has an acceptable un-
employment insurance system. The
tax is not due to the Federal gov
eminent until next January. In
1887 it would increase to per cent
and reach thereafter a straight 3
per cent level.
Still in Nebulous Stage
The contributory old-age pension
feature of the act imposes a 2 per
cent pay roll levy-half paid by
employe-on wages paid in 1887
This levy-share and share alike
would graduate up to per cent in
q few years.
The revision proposals are still
nebulous, it was said One Sugges-
ton was that the tax increases be
spread over more years. Another
was that the old-age pension levy be
delayed in effectiveness. Under the
latter no pensions would be avail
able until 1912.
Meanwhile. the Ways and Means
Committee found it was virtually
unable to assure President Roose-
Welt of his requested first year new
revenue of $792, 100000 for budget
aid purposes. 1t was discovered that
a lag was certain to occur in cor
poration dividend payments under
the undistributed tax plan, because
individuals with increased dividend
income would not pay the expected
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