Evening star., 1941-04-18

Sy the Associated Press.
President Roosevelt asserted today
he did not have the faintest idea
how $500, 900, 900 in new taxes
ought to be raised, but indicated he
still did not like the idea of sales
tax.
Administration officials and con-
gressional leaders of both parties
agreed yesterday on a huge program
to raise $500, 900 900 in new revenue
next fiscal year to bring Govern
ment income up to two-thirds Of
expenditures.
The manner of obtaining the
money and the exploration Of
sources, the President said, Is for
the determination of the House
Ways and Means Committee. Asked
what his feeling was on sales tax,
Mr., Roosevelt said it was the same
as always.
THAT means you do not care for
it?" he was asked.
Not very much, he replied.
Roosevelt Plans Statement.
Mr.. Roosevelt said he expected to
make q public statement on the tax
problem soon, but had not decided
how or when.
Widespread congressional support
was accorded, meanwhile, to the
enormous program of tax in
creases by which virtually every
citizen soon would be called on to
paw a greater share of the Govern
ment defense-swollen expenditures.
SPECIFIC details of the plan re-
manned to be disclosed, but signs in
dicated that higher income and
excise taxes, new sales levies and
possibly q tax on wages would dig
into the pocketbooks of both the
rich and the poor as never before In
America.
Ready for Congress Soon.
Treasury experts worked at top
speed to whip details into shape for
submission to Congress next week.
The plan will be presented to the
House Ways and Means Committee
by Secretary Morgenthau at date
yet to be fixed.
But before that, the broad outlines
and possibly some Of the concrete
tax proposals may be given by
President Roosevelt.
The President, it was believed,
also will emphasize the necessity for
meeting about two-thirds of the vast
cost of American rearmament, aid to
Britain and other Federal expenses
on a cash basis.
The two-thirds cash, one-third
borrowing formula was first dis
closed yesterday by Secretary Nor
ganthau in announcing the total of
new revenues to be raised.
Initial reactions at the Capitol
were enthusiastically favorable to
the proposal, generally conforming
with the view expressed by Senator
Clark, Democrat, of Missouri, a
member of the Senate Finance Com
mittee, that we've done the ap-
propriating and now we've got to
pay the freight"
Levies on "Everything" Considered.
Republicans and Democrats alike
said the full $500, 900, ,000-or more
If possible-should be raised. To at
tain that end, one authority re-
ported, Treasury and congressional
tax experts were considering levies
on everything, including the kitchen
sink"
Down-the- line boosts of IS to SO
per cent in all present taxes were
confidently predicted along with
many new excise levies on such
varied items as soda pop and wash
Ing machines.
Individual taxpayers who now pay
rates starting at A per cent on in
come above $500, If single, and $4,000,
If married, appeared to be in for
stiff increases. Corresponding rises
were indicated in the present "A per
cent corporation income tax, and IN
excess profits and excise levies.
There was also talk that the $500
and $4,000 exemptions might be
drastically lowered to bring in mil
lions Of new taxpayers.
Sales Levy Explored.
Although a general sales tax, such
as those levied by some States, was
said by one authority to be "out OF
the picture" other informed persons
asserted that so many new items
might be subjected to manufac-
turers' excise taxes as virtually to
provide a general sales levy. Bread
and clothing were expected to be
exempted, but extensive exploration
nf the field of "luXuries' was said to
be in progress.
One specific increase reported to
have been proposed at conference
of Treasury and congressional tax
leaders prior to Mr.. Morgenthaus s
announcement yesterday was in the
gasoline tax-from the present / n
cents a gallon to 21a cents.
As Mr.. Morgenthau explained the
developing program, the aim is to
provide a total tax yield of $12,667, =
100000 during the fiscal year begin
ming July /. Present tax rates would
yield an estimated 1928 100000.
One Third to Be Borrowed.
Expenditures for the year were
estimated at 5000 ,000, 900, and ap-
be covered by revenue. The remain
ing third would be met by borrowing,
The meaning of such tremen-
dous goal was emphasized by g
calculs ton that increases of IS per
cent In individual and corporation
income taxes, two of the richest
Federal revenue fields, would pro-
duce only about $3.50, 100000. This
would leave s2,750, ,000. 900 additional
to be raised from all other sources
Commenting on the new tax goal
Senator johnson, Democrat, of Colo
RADIO, q member of the Finance Com
mittee, said that "if you're going tc
do the war dance you've got to pay
the fiddler. Three and a half bill
lion dollars is lot of money in any
mans country, but I am really glad
that they are letting the people know
that war Is no monkey business"
$50 May Be Wage Levy Limit.
Senator Clark said it was going tt
he necessary to tax persons receiv-