The Skyland post. [volume] (West Jefferson, N.C.) 193?-1988, 1941-07-17
(By Staff Writer)

1941 probably won't finally be
enacted until fall, they can be
expected to be in line with tax
schedule completed by the ways
and means committee of the
house Of representatives. The tax
program now is being put in leg
islative form and will be intro
duced to the house any day now.
The new tax, aimed at raising
an additional $3,5O3, 100000 to
pay for a small share of our huge
defense program, will call for
payments of increased sales lev
les by everyone in the country.
AS for income taxes, however,
only those will be required to
pay them who paid this year,
according to the committees
schedule, but they will be much
larger than in 1941.
The present income tax exemp-
tons of $500 for, single persons,
$4,000 for married couples and
$500 for each dependent are sche-
duled to continue. On the first
dollar of taxable income, how
ever, there will be a surtax of 5
per cent above the present 4 per
cent tax. On high incomes the
surtax will be greater. On the
smaller incomes it is estimated
that taxpayers will pay a little
more than twice what they paid
this year.
In addition to income taxes,
other taxes which will be in the
house bill and which hit large
numbers of people include: an
increase of 31a per cent on the
purchase of an automobile, bring
ing the total tax on automobiles
to 7 per cent; a "use" tax of So
on ownership of an automobile;
a per cent tax on telephone
bills; a cents a case tax on soft
drinks; an increase of 81 a gall
lon in the tax on distilled spirits,
bringing this tax to total of 81
a gallon; an increased tax on
tires and tubes and many other
products made of materials i'm
portant for defense use.
To make it easier for the tax
payer to meet these increased
taxes, the treasury department is
working on an installment plan
for making payments in advance.
This plan will be worked out so
the taxpayer can buy small notes
each month, on which interest
will be paid, and which will be
honored for payment of taxes.
Commenting on this plan, Sec
rotary of Treasury Morgenthau
said: eve wanted to make 1t as
easy as possible for the tax-pay-
ers to have the money ready next
year. We feel that this plan which
we have worked out will be a
convenience to the taxpayers to
save the money each month out
of income or earnings to meet
next years taxes"
In addition to increased taxes,
the people are faced with IN.
creased prices. on many lines OF
merchandise and scarcity of 9TH
er products. Leon Henderson, fed
eral price control adm1nlstra-
tor. said that only new laws CIV
ing power to control prices could
prevent major price increases IN
many instances. 1t is expected
that some form of price leg1sla-
ton will be sought.
Scarcities are expected in some
lines because materials necessary
for defense will be made less
and less available for use IN con-
sumner products. Automobiles, on
which manufacturers already
have agreed to a 20 per cent cut
in production in 1912, may be
subject to still further cuts, &C
cording to William S. Knudsen,
director of the Office of Produc-
ton Management. Automobile
makers, who now have around
S2,OO0,0OO,OOO in defense con-
tracts, may be called upon to as
much as triple their defense pro-
duction schedules, MIR. Knudsen
said.
Interruptions in defense output
due to strikes have decreased
considerably and the President
has indicated that he will stand
for no more major Interruptions,
such as the strike at North
American Aviation. In returning
that aviation plant, which was
operated by the army for almost
a month, to its owners, the Presl-
dent said:
SHOULD efforts be made again
to interfere with this essential
production, will not hesitate to
take whatever steps may hereat-
ter be necessary to insure us
continuance"
Although in his Fourth OF July
speech the President said that the