Evening star., 1940-06-14
Hearings on Defense
Tax Measure End;
Film Plan Offered
Sliding Scole Proposal
Would Ruise More
Revenue, Bockers Soy
BY J. A. O'LEARY.

admissions costing II cents or more.
The witness said that the House bill.
extending this tax down to the 81
cent price level, would increase the
revenue from $1,000, 900 to $25, ,o00.-
600, whereas adoption of the sliding
scale would net the Government
$50, 100000.
Finance Committee Called.
Chairman Harrison called the
Finance Committee to meet tomor-
row morning in executive session to
act on the bill in time to report it
to the Senate Monday.
Earlier, representatives of the
United States Chamber of Com
merce and the New York Board of
Trade urged a complete revision Of
the tax structure as soon as possible
TO replace the pending emergency
program. The committee also heard
another group of witnesses, includ-
ing members of the House, oppos-
ing further increase in tobacco taxes,
on the ground that tobacco already
pays disproportionate share of ma
tional revenue.
The chamber Official suggested
creation of a special budget COM
mittee In Congress to coordinate
the plans of the regular committees
that deal with spending and raising
OF revenue. He said this could be
an ex-ofhcio group, selected from
the membership Of the appropriat-
Ing and revenue-raising committees.
The New York Board of Trade.
through M. L. Seidman, questioned
the wisdom of postponing revision
of the tax structure until the next
session.
That Is job, as you know, which
has been shifted from Congress to
Congress" the witness said. AL
ways it IS admitted this job needs to
be done, but always it is too late to
do 1t in the session about to close.
1t would appear that the Treasury
has already made an ample study
OF the subject and that it is ready
and willing to see this matter
through If Congress is willing to do
so. II this job could be done now
much would be gained and business
would know where it is at"
Mr.. Seidman placed his organiza-
ton in full accord with the purposes
Of the pending bill, and added that
II Congress decides it is not feasible
to wait for complete tax revision al
this session, it should make provi-
sion for a study of the subject dur
ing the recess.
The tax bill under consid-
Grafton Should be limited to one
year to make way as quickly a.
possible for more comprehensive
revision Of the whole tax structure, ,
Ellsworth c. Alvord, spokesman TO,
the chamber. told the committee.
Any changes in the tax laws now
must necessarily be of q makeshift
character, Mr.. Alvord said, and the
proposed changes should be sup
planted before their expiration by a
long-range permanent tax program
Urges Three Considerations.
Mr.. Alvord asked the committee
to consider three essential factors
when 1t approaches this long-range
revision, namely:
l. The importance of an increase
in business and individual net in
comes in order to provide a larger
base on which the major taxes are
levied.
2. The method of obtaining maxi
mum Government revenues without
causing a shrinkage of the income
base.
3. The best manner of vigorously
restricting non defense expenditures
and Of providing an effective con-
troll by Congress over the volume of
expenditures from year to year.
Few Changes Likely in Bill
Although Finance Committee
members have put forth many sug-
gestionS for increasing the total, in
dications are that they will, in the
end, make comparatively few
changes in the House schedules.
Chairman Harrison himself sought
the views OF Treasury officials yes
terday on the advisability of re-
ducing the personal exemption for
married persons from $500 to ST.
800, instead Of the House figure OF
$4,000. However, he is understood
to have decided not to propose such
. change when the bill is being acted
on. Yhe 1880 limit would levy
about $35 ,000, 900 more revenue from
married persons.
Senator La Toilette, Progressive,
Of Wisconsin, believes the committee
should tackle now q more complete
revision of the revenue structure,
particularly in the excess profits
fleld, instead of putting that task of
until the next session.
La Toilette Wants Revision Now.
Senator La Toilette argues that the
bulk Of the revenue yield from the
House bill, to be derived from in
creased individual and corporation
income taxes, will not be collected
until next March, and that Congress
might well take time now to work
out complete tax revision than to
the law in January before
. major part Of 1t goes into effect.
The Wisconsin Senator indicated,
however, he was not optimistic over
his chances Of winning committee
approval for this course of pro-
ceduIe.
Although there is little prospect
Of early congressional adjournment,
administration leaders in the Senate
win make every effort to complete
action on the tax bill next week.
The House Ways and Means Com
mittee already has made known its
desire to let the question of taxes
on war profits wait until the next
session. A week ago it directed
Treasury oficials to prepare such
legislation for the next session.
There are indications, however,
the Senate Committee win adopt In