Evening star., 1940-06-10
Harrison Sees Action
On Tax Bill in Time 10
End Session June y
Doubts Are Expressed,
However, os War Profits
Fight Is Organized
n the Associated Press.

~ the Associated Press.
As the House prepared for quick
action on the emergency 81 ,004 .000,-
900 defense tax bill. Chairman Har-
rison of the Senate Finance Com
mittee today reiterated, in the face
of freshly-expressed doubts, that
Congress would have the bill enacted
In time for June % adjournment
The doubts arose from the fight
being organized for inclusion of an
excess war profits tax in the bill.
Senator La Toilette, Progressive, of
Wisconsin. leader in the battle. with
varying Republican support, said
he intends to submit anti -profiteer-
ing legislation to the Senate COM
mittee when it opens consideration
OF the tax measure.
The House, with the bill approved
by the Ways and Means Committee
expects to open debate on the
measure tomorrow and finish it by
the weeks end Little opposition
and few moves to amend are looked
for in the House.
However, Senator La Toilette
already has asked the Treasury for
information regarding the amount
OF revenue that might be raised
by varying percentages of taxes.
He said he seeks this information
to support his position in opposi-
tion to excess war profits.
House Unit Also Orders Study.
In approving the bill, the House
Committee itself ordered study
of excess profits taxation with a
view to enactment of restrictive
legislation at the next session of
Congress. 1t said in statement
that there should not be an oppor-
tunity for the creation of new war
millionaires. or the further substan-
tial enrichment of already wealthy
persons because of the rearmament
program
Senator La Toilette. for action
now, said he did not see what OBJ
lection business concern could
have, If it appears that it is going
to make an unusual profit from a
defense contract, to turning back
at least a portion of that profit to
the Government"
Senate Republicans were under
stood to have agreed to back any
reasonable proposals to return to
the Government share of alb
normal profits by concerns filling
contracts for airplanes, machine
tools and other armament equip
ment needed for the defense pro-
gram.
The La Toilette proposal en-
countered opposition. however. from
Senator Harrison, Senator George.
Democrat. of Georgia. another COM
mittee member and Senator Adams
Democrat, of Colorado
We're not in war yet comment
ed Senator Harrison and I see no
need for war-profts tax now"
There is no sence in crucifving
business just because We think that
somebody is going to attack us at
some time in the future" said SEN
ator George.
Income Taxpayers Increased
As approved by the House COM
mittee the emergency measure
would increase by 2,050000 the num-
Der OF persons paying Federal m
come taxes, largely through reduc-
tions in exemptions to $500 for sin
gle persons and $4,000 for married
persons. Corporation taxes would
be boosted ! per cent, excise levies
generally would be increased 10 per
cent and surtaxes would be raised
on individual incomes from S6 1000
to 100000.
While Senator Harrison expr assed
general satisfaction with the emer-
gency bill. he said its enactment
would not deter plans for thor
ough-going survey of the whole tax
structure.
He said this survey would be made
this fall by the Joint Committee on
Internal Revenue with the view Of
overhauling the tax system at the
next session of Congress.
Although the tax measure was the
center of interest, Congress pushed
ahead with other defense measures
Defense Measures Up.
The Senate will have as unfin-
ished business today bill to lift
present restrictions on the number
OF airplanes that may be acquired
by the Army and to authorize the
President to spend Sl32 0O0,0 900. half
In cash and half in contract au-
thority, for emergency defense pur-
poses.
Chairman Sheppard of the Sem
ate Military Affairs Committee sue
ceeded in amending the bill last
week to permit the Government to
sell surplus war materials to Amer
lean factories on credit, thus clear
Ing the way for their resale to the
Allies immediately.
once this measure is disposed of
the Senate is expected to act speed
lily on sl,073.548,9l6 relief bill ap-
propriating s975 $4,000 for the w.
P. A. for eight months.
Although few expected much con-
troversv over this measure, Senator
Byrd, Democrat. of Virginia assert
ed that an additional S5O8 900 .O8O
appropriation was almost sure to be
requested for relief after Congress
returned in January.
Ten Per Cent Cut Urged.
Urging 10 per cent reduction in
Federal expenditures outside those
Tor defense purposes. Senator Byrd
proposed an immediate increase of
$500 100000 in taxes, instead of
the $1,000 100000 contemplated in
the tax bill.
He said he would offer his 10 per
cent reduction proposal as an
amendment to the tax bill.
The House is scheduled to debate
today the enlarged Army appropria-
tions bill, carrying $500, 0,O24 1888 in
direct appropriations and 1923 ,229.-
63e in contract authority. Tomorrow
the House is expected to take up