Evening star., 1939-05-14
T uxes
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proved deterrent to investment and
business expansion There was no
possibility, under existing conditions
OF Tightening the tax load, but it
has been both possible and needful
to better distribute the load.
The administration has failed to
take the initiative with respect to
tax revision at this session of Con-
gress and nearly five months have
elapsed without action, which in the
case of tax legislation must originate
In the House There has been much
intermittent discussion of the SUBJ
Ject at the White House and at the
Treasury and in both the Senate
and House, but no definite progress.
Long and Slow Process.
1T is greatly to be regretted that
as matters now stand it is probably
going to prove impossible to formu-
late and enact any substantial tax
revision legislation within the re-
naming weeks of the present ses-
sion. Such legislation is inevitably
d long ana SLOW process.
The President and the Treasury
are rightfully insisting that If any
tax whatsoever be repealed, the
tax revenue there by lost shall be
made up by some new levy in some
other direction. Furthermore, it is
apparent that the time is now not
far off when an increase in taxes
TO meet continuing deficits will have
to be faced. This complicates what
might otherwise be comparatively
simple matter.
Il look to see the present excise
taxes which Congress still treats as
temporary and emergency and
which expire on June 80 extended
for another two years by joint reso-
luton.
The corporation taxes which at
thelr last revision. last year. were
enacted on temporary basis, to
run only through 1899. must be
extended on some basis at this
session of Congress, otherwise corr
poratlons enter 1910 with their 1910
tax liability an unknown quantity.
1 am still hopeful that when we
come to deal with a bill or resolution
to carry forward corporation income
taxes, 1t may prove possible to elimi-
nate entirely the undistributed prof.
its tax, which it is claimed has re-
tarded recovery and contributed to
unemployment. I shall work to
that end. 1t is gratifying to report
that Chairman Harrison and other
members of the Senate Finance
Committee are in favor of such
action. But beyond that. the chance
for tax revision this year is getting
Simmer every week"
Nuisance Taxes Bring S4OO, 900 900.
The nuisance taxes. due to expire
June 80, bring in about $4OO 900 900
IN revenue. There appears to be
no opposition to continuing them.
since the revenue is so greatly
needed
All tax legislation must originate
IN the House, under the Constitu-
ton, but once the House has sent a
tax bill to the Senate that body NAV
amend 1t as it sees fit That being
The case, if the House sends mere
continuing resolution to the Senate,
the Upper House may add to the
resolution what it desires.
A majority of the Senate. it is
said, will support the proposed re-
vision of the corporate tax schedule
at this session. On the other hand.
there Is likely to be opposition to
any attempt at general tax re-
vision now. Senators are loath to
undertake, for example. revision
OF the income tax rates. even though
some of them are anxious to repeal
some of the higher brackets. be-
lieving that by SO doing the Govern
ment will really obtain more reve-
nue.. They know that if such an at
tempt is made now, demands for
changes in the basic rates will be
Forthcoming and also changes in
the lower surtaxeS.
The plan for revision of the cor
porate taxes, 1t is said, will not re-
duce the amount of revenue which
is received under existing law.
King Prepares Bill.
Senator King, Democrat, a mem
Der OF the Finance Committee, said
yesterday, however, he was prepar-
ing a bill generally revising and
increasing Federal taxes.
Il believe said Senator King.
that taxes should be levied which
Will raise enough revenue so that
the Government expenditures will
not exceed the Government re-
celpts by more than a billion or a
billion and half dollars at most.
II the taxes are increased enough
the people will then understand
what all this huge Government
spending really means to them. I
am in favor also of c,,rto il;,p co,