Evening star., 1941-09-03
George Says Taxes
Must.Be Levied 10
Encourage Industry
Defends New Bill
As Senate Begins
Debate on Measure
By J. A. OIEARY.

The Senate was warned today by
Chairman George of the Finance
Committee that I'VE are due for the
skids" unless taxes are so levied as
to encourage private industry to
take up the employment slack when
the present emergency is over.
The Georgian opened debate on
the s3,679, 100000 revenue bill with
this admonition, after Senator La
Toilette. Progressive. OF Wisconsin
had filed scathing minority report
against the bill on the ground 1t
"soaks the poor" and deals too light
ly with excess profits.
Senator George declared that
every individual and every corpo-
ration is going to know in his pocket
book that we are in a grave emer-
gency." but he said it should not be
so drastic as to chill the genius OF
creative enterprise"
Must Maintain Income.
While this country is rich in nat
ural resources. he said, one of its
greatest assets is the existence of
private enterprise and willingness
to work. No one can foresee the ap-
proximate cost of this emergency.
he said, and predicted that one of
the safest future reservoirs from
which to meet it will be a tax pro-
gram that will continue to stimulate
a $l0O,0000O0,000 annual national
income.
Looking ahead to possible new
sources of revenue in future Senator
George suggested we must ulti-
mately give more thought to what
he called Federal service tax on
the primary income of all corpora
tions. He explained he did not mean
gross income, but income after de-
Quoting the factors present in all
businessman materials, wages and
rent.
The bill had been up only a few
minutes when Senator DoWney,
Democrat, of California introduced
for later debate his liberalized old
age pension plan. to be met by in
creased pay roll taxes on employer
and employe. Administration lead
ers hope to convince the Senate this
issue should not be injected into the
tax bill.
Assailed as Vicious
The tax bill was denounced as
vicious" and "indefensible" in his
minority report by Senator La Fol-
lette, who asserted it ''soaks the poor
while confirming, protecting and en-
trenching the corporate wealth and
power engendered by the defense
program
Commenting on the committees S
action in cutting personal exemp-
tions from $4,000 to 1900 for mar
ried couples and from $500 to $3.50
for single persons, Senator La Fol-
lette said:
There is no Justification whatso-
ever in dipping further into the
Door mans income-whethe by hid
den excise taxes or lowered income
tax exemptions-if and until ade-
uuate excess profits levies are made
by the Government"
At the same time Senator VAN
denberg of Michigan, Republican
member of the Finance Committee,
filed a separate report, announcing
he will reluctantly" support the
bill ''if at all, only because any bill
could not possibly be worse than no
bill at all in view of the truly des-
perate fiscal emergency which the
Federal Treasury confronts."
He added, however, that he hopes
to see 1t improve before the Senate
passes it.
Many Dangerous Taxes.
There can be no denial OF the
fact" said Senator Vandenberg,
that this bill has many dangerous
taxes in it. They eat at the very
heart OF our domestic economy.
Many of these taxes are highly dis
CONTINUED on Page Alt, Col. A.