Evening star., 1940-06-05
Broader Income
Tax Base Sought
As Defense Lew
House Subcommittee
Told to Find Way
To Raise $500, 900, 900
BY the Associated Press.

BY the Associated Press.
The House Ways and Means Com
mlttee, bent on raising money for
growing defense costs. directed a
10-man subcommittee today to find
way to add at least 5000. 900 900
to the s656.000000 in the pending
defense tax bill
The principal proposal laid before
the subcommittee was a broadening
OF the income tax base to reduce
individual income tax exemptions
from $500 to $1,000 for heads of
families and from 81 900 to $500 for
single individuals.
Chairman Doughton estimated
the base broadening plan would
raise s80,00O0O0.
Increased Levy Suggested.
Such a broadening, and an In
crease in levies on the middle and
lower income brackets, as has been
suggested, would raise a sum esti-
mated at upwards of s4OO 900. 900.
Mr.. Doughton said that whatever
funds were derived from the taxes
would be used to retire a $4,000
600 900 Federal debt-limit increase
already approved by the committee.
Any excess over the amount needed
to retire this debt would 60 into
the general fund of the Treasury, he
said. .
Asked why it was proposed to
make the base broadening perma-
nent Mr.. Doughton replied:
There has been feeling for
long time that something ought to
be done to equalize the tax bur-
den.'
Committee Meets Today.
In response to other questions the
chairman said that no consideration
mad been given by the committee to
any war excess profits tax or to a
| general sales tax.
| The subcommittee. which will hold
Its first meeting this afternoon, is
composed of Representatives Cooper
| OF Tennessee, chairman: McCor-
mack of Massachusetts,, Disney Of
Oklahoma, Buck of California, Dun
can OF Missouri. Boehne of Indiana,
Democrats; Treadway of Massachu-
setts, Crowther of New York, Reed
OF New York and Woodruff of Michi.
gan. Republicans.
Base Broadening Permanent.
The proposed base broadening,
which would add thousands of ad.
dltlonal persons to the ranks of in.
come taxpayers, would not carry
flve-year limitation. it was said.
1t would be permanent in the sense
that 1t would not be automatically
repealed, but would remain on the
statute books until some contrary
action were taken by Congress.
The original bill, offered by Com
mlttee Chairman Doughton, applied
the flve-year provision to all its
levies, which included many in
creaSes in excise taxes.
The original theory was that the
tax increases would retire a $1,000, .
600 900, or $4,000, 900 900 addition to
the Federal debt for defenses. The
larger figure was definitely decided
on by the committee yesterday.
G. o. P. Wants General Revision.
Republicans were reported to be
insisting on general revision of
the revenue laws. which would keep
Congress in session indefinitely.
All but one of the Republican
committeeman abstained from vot-
ing yesterday when the Ways and
Means Committee decided to recon-
mend increasing the Federal debt
limit from s45,O00 100000 to s49.-
900, 100000 and to devise revenue in
creases which would "at least" pay
off this $4,000 100000 boost in five
years.
AfterWard nine abstaining Re-
| publlcanS issued statement pro-
testing that sufficient information
was lacking as to how the money
would be spent and as to whether
the proposed new debt limit would
meet present conditions" They
demanded a reduction in Govern
ment expenses.
Roosevelt Hopes to Save.
Hope for such a reduction was
expressed by President Roosevelt
at press conference held about
the time the Republican statement
was made public Mr. Roosevelt an
nounced the expectation of saving
from s250000,0O0 to 100000 900
through impounding a percentage
of funds of agencies not directly
involved in the preparedness pro-
| gram.
The President emphasized, how
ever. that these savings will not be
attempted by salary reductions or
personnel dismissals.
Commenting on reports that Con-
gress may increase the present tax
bill to s1,000,0 100000 Mr.. Roose-
welt said that as a general PROPOSE
ton the more that can be raised to
pay as we go the better. Pointed
ly, however, he added that the i'm
poroant thing is to get bill drafted
and passed, making clear his doubt
that a general overhauling of the
tax structure would be practical at
III