Evening star. [volume] (Washington, D.C.) 1854-1972, 1941-03-13
Five Pct. Salary Tax
Studied 10 Help Pay
For Aid 10 Britain
Experts Soy lmpost
On JobhoIders Would Net
$500, 000, 900 YeorIy
BY the Associated Press.

oS TIC AsSOCIdIcQ FTeSS
Congressional fiscal experts, cast
ing about for new revenue sources to
help pay for the s7000,0000 900 Brit
ish-aid program, were reported con-
sidering today the possibility of i'm
posing per cent tax on the weekly
pay of most of the Nations workers.
If such a 5 per cent earned in
come" tax, should be levied, that
amount would be deducted for the
Government each week from the
pay envelopes of large proportion
of jobholders. Thus a worker now
receiving $40 weekly would get, in
stead, $38 and a tax receipt for 50.
Small wage earners-possibly those
receiving $25 weekly or less-would
be exempted.
Although it was emphasized that
this proposal was merely in the dis
cussion stage and might never ma
ture, responsible individuals who
have been studying the plan said
they had received estimates that
per cent levy of this nature would
raise 100000 yearly.
Acknowledging that the proposal
might arouse storm of protest from
wage earners, advocates said it would
have to be accompanied by COM
mensurate increases in taxes on in
comes from investments, rentals and
other sources so that there could be
no discrimination.
1t would entail, they pointed out
also, a reversal of previous admins
tratlon policy of easing taxes on
wage earners as much as possible
and for that reason was expected to
elicit little support at the Treasury
or White House.
Against this suggestion for an in
Vasion of new field of revenue.
Chairman Harrison of the Senate
Finance Committee told reporters
he personally felt that present taxes
should be revised upward without
attempting to bring in untried levies.
Estimating that Congress might
be asked to provide an additional
Sl,5OO,0OO in new revenue this
session, Senator Harrison said he
felt there might be some justifable
increases in excess profits levies and
normal corporation tax, as long as
rates were not boosted so high that
they would hurt business and re-
suit in reduced. rather than boosted,
revenues.
May Raise Corporation Tax.
Agreeing largely with Senator
Harrison. Senator George. Demo-
crat, OF Georgia, next ranking Dem
ocratic member of the committee.
said it might be necessary to raise
to 80 per cent the present fiat rate of
"a per cent on corporations earning
more than $4,000 year.
Senator George predicted this
action would have to be accompanied
with an increase in surtaxes on in
dlVldual incomes, adding that it
did not seem desirable, because of
the relatively small amount of reve-
nue. involved, to make any material
changes in excise levies.
Finance Committee members
agreed generally that the Presidents
request to Congress yesterday for
$1,000, 900 in direct appropria-
tons for aid to Britain and other
countries had complicated the al
ready complex tax picture.
Secretary of the Treasury Morgen-
than told the Senate committee re-
Gently that the 1912 budget SUBJ
mitted indicated an overall ex-
penditure of 28.5OO, O0O, 900 for ma
tional defense, which would result in
combined deficit for the 1941 and
1912 fiscal years of s15,400, 900 900.
This was without reference to the
S7,O00,0 00,0 900 aid fund.