Evening star., 1940-08-30
Excess Profits Tax,
Voted by House, Faces
Rocky Road in Senate
Committee Opposition
Reported; Ia Toilette
ToIks of Sitter Levies
BY the Associated Press.

BY the Associated Press.
The excess profits tax bill, which
whisked through the House in less
than four hours, went to the Senate
today where signs pointed to con-
siderably less speed and a possible
pverhauling.
Opposition to the bill was reported
IN the Finance Committee, where
d Senator La Toilette, Progressive, of
Wisconsin already was talking of
sitter taxes than the excess profit
levies of 20 to so pre- cent provided
3 by the House
p The House gave its approval to the
complex measure yesterday on
voice vote which found only a hand
full of members dissenting. It's ap-
proval was urged on the ground that
1t would end the "bottleneck" of tax
uncertainty on defense, contracts,
and at the same time prevent the
amassing of huge war fortunes"
Besides the imposition of 20 to
so per cent excess profits tax, the
House-approved bill would:
l. Permit Government contractors
to "amortize" defense plant expan-
sions by deducting the cost of new
facilities from taxable income;
2. Suspend the present profit
limitation on WarShip and aircraft
contracts;
8. Yield an estimated $500 900 900
revenue in 1910 and 5000, 900 an
nually thereafter.
Hearings to Start Tuesday.
Senator La Toilette, who may seek
TO boost the rates, was the author
OF more drastic excess profits tax
formula, passed by the Senate earlier
this session but thrown out of the
81 100000 general defense tax
measure in a Senate House compro-
mise.
The new excess profits legisla-
ton went Immediately to the
Finance Committee and Chairman
Harrison said hearings would COM
mence Tuesday. The Senate lead
ership plans to start debate the
week after next.
The ease with which the measure
was pushed through the House at
single days session was made
possible by drastic procedure which
barred all amendments not ap-
proved by the Ways and Means
Committee and also limited debate
to two hours.
Many more complaints were
heard against the procedure than
against the bill itself. Representa-
tive Fish, Republican, of New York
called the procedure "a vicious gag"
but nevertheless supported both the
procedure and the bill itself be-
cause both Democratic and Repub-
lican Ways and Means Committee
men urged that the legislation not
be tampered with.
"Aimless Haste" Hit.
The two main complaints against
the bill were made by Representa-
tives Knutson, Republican. of Min
nesota and Ford, Republican, of
California.
Mr.. Knutson objected to what he
called "aimless haste in the 'formu-
lation of tax policies" and to day
to-day and hand-to-mouth" defense
financing. He urged more compre-
hensive defense planning and COM
prehensive tax legislation to finance
the plans.
Mr.. Ford expressed fear that the
tax meant SLOW assassination OF
business" which he said already
was "overtaxed, overregulated and
harassed." He suggested that the
$3OOO0O,OOO the bill is expected to
raise this year could be obtained
through Federal economy.
The Ways and Means Committee
said in its report that the tax was
designed to prevent creation of
new war millionaires or the further
substantial enrichment of already
wealthy persons"
10000 Firms Affected.
President Roosevelt and the De-
fense Commission have urged quick
passage of the legislation. William
S. Knudsen, one of the commits
sioners, said manufacturers had for
a time held back on signing con-
tracts because they were uncertain
OF the tax risks involved.
Representative Cooper, Democrat,
of Tennessee, one of the bills man
ayers, said it would affect only