Evening star., 1941-08-18

TdlQS ana Dy lOuIlnS CneSe SuDWdyS
as adequate air raid shelters-in
Washington, of all places, where
soil conditions are receptive to
bombs to a depth of perhaps so feet
in Louisiana case the Supreme
Court held tax on newspaper adj
vertising of doubtful constitution
ality. He said he understood the
contention of the radio industry is
that, since radio and newspapers
are competing media, radio ought
not to face this tax
The Chicago Federation OF La
Dor, which operates radio sta
ton, also opposed the new tax.
Maurice Lynch, its secretary, called
it discriminatory
Others appearing in opposition to
the tax were Mrs Emily Holt of
New York, for the American Fed
Grafton of Radio Artists, and by
Lawson Wimberly Of the Interna-
tional Brotherhood of Electrical
Workers.
Claude w. Dudley of the Millers
National Federation said two fea-
lures of the House excess profits tax
schedule are inequitable.
One is the special 10 per cent
excess profits tax applicable to that
part of current earnings which ex-
ceeds the base period earnings but
does not exceed the invested capital
credit. This. he said, will fall heav-
lily on industries that had meager
earnings during the base period.
He also suggested that the gradu-
ated scale of excess profits rates
should bear relation to the per-
centage return on invested capital
and not merely with relation to size
of income.
Theater Tax Change Asked.
The motion picture theater own
ers of America asked the committee
to establish a simple admission tax
rate Of ! cent for each 10 cents OF
ticket price. Their president, Ed
Kuykendall of Columbia, Miss, testi-
fed that as the bill is now written
if theater has top price of 40 cents
and offers children a 20-cent ticket,
the bill forces the theater to collect
a tax from the juvenile on the 40
cent admission basis.
Declaring this is "manifestly un-
fair" he urged that the tax be
based on whatever the admission
charge may be. He predicted the
,f1 nf
on every 10 cents would yield more
revenue and distribute the tax more
equitably.
He told Senator Taft, Republican,
of Ohio there would be no difficulty
or confusion in carrying out a tax
exemption for children under IL
years. or for men in uniform. The
House bill already provides for a
lower tax when the price is reduced
for men in uniform.
Sales Tax Asked.
Senator Vandenberg, Republican,
of Michigan proposed yesterday a
5-per-cent manufacturers sales tax
to raise approximately $1,250,000,-
600 in new revenues, and asserted
there was substantial support" for
the proposal within the committee.
Declaring that about 100000, 900
in new excise levies in the House.
approved bill involved "discrimi1a-
ton" Senator aVndenberg urged
that a manufacturers sales tax ex-
empting food, clothing and medicine
be substituted in their stead. This
would increase prospective yields
$3.50. 900, 900, he said.
There has been lot of propa-
ganda spread around to the effect
that a sales tax would hit the poor
man hardest, but that isn't true"
Senator Vandenberg told reporters.
He said studies indicated that
only 20 per cent of the average
wage earner's income would be af-
fected, if food, clothing, medicine
and services were not taxed.
Senator Vandenberg said he was
not proposing the elimination of
established excise taxes on such
items as gasoline, cigarettes, liquor
and beer, which he classified as
special sales taxes" What should
be eliminated, he said, were new
nuisance" levies imposed by the
House bill Chief of these was a
S. "use" tax on automobiles, calcu-
lated to raise s160,00O,000.
Observing that the committee was
almost certain to face a decision
on the sales tax question, Chairman
George indicated that such a pro-
posal would not have administration
support. He added, however, that
several Senators were strongly
inclined to obtain additional rev.
enue that way.
Pay Roll Tax Studied.
Senator George said the COM
mittee also would study a proposal
of the United States Chamber of
Commerce to impose a withhold
ing or pay roll tax. The chamber
said such a tax would raise $2,0OO,-
100000, but Senator George said he
doubted that sufficient revenue
could be obtained to make the in
stitution of such a levy worthwhile
If reasonable" credits were allowed
to wage earners to pay for the
necessities of life.
+ The tax hearing was the only busi-
ness of Importance in either the
House or the Senate today as Con-
gress found itself in the dog-days
doldrums, with q majority of mem
bers idling at home or at vacation
resorts.
Under an. agreement to meet only
twice weekly and to transact no
business, the House started a four
week rest period today. Most mem
bers packed their bags and left town
during the week end.
Democratic Leader Barley said
the Senate had nothing on its
books this week and that he could
foresee no business until the FL
nance Committee reports the new
revenue bill. -s.-
-,