Evening star., 1941-09-17
.SendteApprovd|
Sends Tax Bill
To White House
Prompt Signature
Expected for Biggest
levies in u. 5. History
BY the Associated Press.

National defense.
The legislation, which would i'm
pose heavier burdens on virtually
every citizen and corporation in the
country, was expected to receive Mr..
Roosevelt's signature promptly. Final
approval came on voice vote.
The bills heavier taxes on in
dividuals and corporations would be
effective on income for the current
calendar year. while most of the
excise. or nuisance" taxes would go
into effect October I.
Preceding the vote, Chairman
George of the Finance Committee
declared in debate that Senate
members of a joint Senate House
Conference Committee had strongly
insisted" that an amendment eX-
empting strategic metals industries
from the excess profits tax be re-
tanned in the compromise legisla-
ton. He added, however, that the
House conferees declined to accept
the amendment, and it finally was
knocked out
Thomas Fears Chaos.
Senator Thomas. Democrat Of
Utah objected to elimination Of the
exemption, saying it had been
allowed in the past. and that a
change in policy now might bring
chaotic conditions"
From Senator Davis, Republican,
Of Pennsylvania came statement
that the tax bill will dig deeper
into the pockets of almost every
American"
In the future" Senator Davis
added, Il hope we can develop some
orderly system of taxation and not
have to rely on just arbitrary tax
bills from time to time
If the yield from the measure
equals careful advance estimates,
total Federal tax collections are ex-
pected to hit 5000 900, 900 or more
in the next fiscal year.
House Approval Prompt.
A compromise between slightly
different versions originally passed
by the House and Senate, the revised
measure was approved by the House
yesterday without record vote after
less than an hours discussion.
The bill virtually will triple the
taxes of persons in the middle in
come brackets and will require about
22,000, 900 persons to file income tax
returns, although not all of them
will pay taxes.
In its present form, the bill would
raise an estimated 81 l,144 500 600
from individual incomes through a
system of graduated surtaxes start
ing at per cent on the first dollar
of taxable income and rising to IT
per cent on incomes over $4,000, 900.
It would lower personal exemptions
from 1000 to 81. 500 for married per-
sons and from $500 to $3.50 for single
persons and thereby raise about
1903 600 900 in new revenue.
Only about SAT 900 900 of this in
crease would come from the new
taxpayers, however, for the lions
share would be paid by persons al
ready taxed.
Simplified Form for Some.
The normal income tax rate Of 4
per cent was left unchanged and the
bill would permit the use of an op-
tional, simplified return by persons
with gross incomes OF $1,000 or less
which would eliminate most Of the
paper work involved in computing
taxes.
In the case of corporations, the
bill would levy per cent surtax on
the first S25,000 of corporation in
comes and per cent on any excess.
1t would not change the normal cor
porate tax of "a per cent, but would
boost the excess profits rate by 10
percentage points so that instead Of
ranging from Is to so per cent, they
would run from IS to so. Firms still
would be permitted to compute their
excess profits on the basis of either
invested capital or average earnings,
although both President Roosevelt
and the Treasury Department rec
commended elimination of the aver
age earnings method.
A wide variety of new or increased
excise taxes and : miscellaneous
levies, effective October l, also would
be imposed by the bill, and the
Treasury estimated they would pro-
duce total of about $1,026, TOO 900
additional revenue.
These imposts would reach vir-
tually every family in America, for
they include such levies as IS
annual use tax on passenger auto
mobiles and boats, tax of 2 cents
on every 1000 matches and 5 per
cent on the price of electric light
bulbs. Even monthly telephone bills
would be taxed 6 per cent.
The excise tax on liquor would be
boosted from So to 81 gallon to
produce about $123 1000, 900 addi-
tional and higher rates on wines
would yield about SIC. 400 900. Coin
operated slot machines would be
taxed $50 yearly and pin-ban and
similar games IS annually.
The bill also would hike estate
and gift taxes and capital stock
taxes so as to bring in SITS, ,900, 900
extra.
Many Other Levies Listed.
In addition, miscellaneous taxes
would be levied on cabarets, roof
gardens, club dues, safety deposit
boxes, telephone, telegraph and
radio messages, bowling alleys and
pool halls, musical instruments, lug
gage, passenger transportation, elec-
trical equipment, washing machines
used in commercial laundries, radios
monographs and records, refriger-
ating and ir-conditioning appa.
ratus and sporting goods.
Apart from new taxes, the bill
also would establish a special COM
mittee composed of representatives
of the Senate and House and execu-
tive departments to study methods
Of eliminating .non-essential ex-
penditures. &