Evening star., 1940-11-30
No Tax Boost
On 40 Incomes,
Farley Assures
Rise in 1941 Rates
Predicted After
White House TuIk
picture on Page All
By the Associated Press.

BY the Associated Press.
The Nations millions Of income
taxpayers, both big corporations and
plain citizens, were assured by Pres
ident Roosevelt and congressional
finance experts today that they
need expect no further increase in
their tax bills for 1910.
While sharp increases, designed
to help meet defense-swelled ex-
penditures, appeared to be almost
certain for the taxes on 1941 in
comes, Chairman Harrison of the
Senate Finance Committee an
nounced that further retroactive
taxes on this years income were
out of the picture.
This was decided, Senator Har-
rison said, at supper conference
which the President held last night
with Treasury officials and leaders
of interested congressional commit
tees.
1t means that the basic "a per
cent corporation income tax rate
and the graduated levy on individ-
ual incomes starting at "A per cent,
will stand. First installments on
1910 income taxes will fail due next
March Is.
viii Work on New Rates.
Mr.. Harrison said that, early In
January, congressional committees
will begin work on legislation affect
ing 1941 incomes. 1t is generally
believed that many tax rates will
go up when that measure is en-
acted
The size Of the increases probably
will not be determined finally until
after the March Is returns are in.
Chairman Doughton of the House
WAYS and Means Committee, an
other of the presidential conferees,
said present estimates of the revenue
to be produced then are "encour-
aging"
Besides Senator Harrison and
Representative Doughton, others at
tending the Observation-Disclosures
conference were Senator George.
Democrat, of Georgia of the Finance
Committee and Representative
Cooper, Democrat, of Tennessee of
the Ways and Means Committee;
Secretary of the Treasury Morgen-
thau, Assistant Secretary John L.
Sullivan and Harold D. Smith,
budget director.
Senator Harrison said that Mr..
Smiths presentation of prospective
spending was very much part" Of
the discussion, which, he said, also
covered the probability of having to
increase the present s49, ,000, ,000. 900
limit on the Federal debt.
No Other Decisions Reached.
But, Senator Harrison added, the
discussions were general" and no
decisions were reached other than
that regarding 1910 income.
This income was subjected to re-
troactive taxation in both the first
and second Revenue Acts passed by
Congress this year. The initial legis-
lation imposed 10 per cent defense
"supertax";; the second increased
corporation income taxes and i'm
posed an excess profits levy designed
to prevent the creation of war
millionaires.
Senator Harrison mentioned one
other thing specifically. He said the
congressional committees would give
consideration to the overlapping of
Federal and State taxes.
There was talk, meanwhile, Of a
goal of $4,000, 900 900 in revenues
for the next fiscal year-about
So, 900 900 900 more than the most
liberal estimate of the amount
likely to be raised during the cur
rent year. Against this, expendi-
lures are expected to exceed S13,-
600, ,OO0, 900 this year and may be
even higher in 1941.
Profits Tax Revision Seen.
One member of the group which
attended the White House confer
ence said it appeared likely that
the present excess profits tax law
would have to be worked over In
order to iron out rough spots In ad-
ministration.
Some sections of the law have
been found to be impractical In en-
forcement, he explained. but he
declined to predict whether changes
would involve more than mere per
fecting" alterations.
Even before the conference group
gathered at the White House the
President had quieted talk of a Fed
eral sales tax by telling his press
conference that he would not ap-
prove any such levy.