Evening star., 1941-08-31
mated to add s5o,Ooo,ooo to Federal

mated to add $50,0O0,000 to Federal
collections, means, in effect. that in
such States earned income would be
reported on the return of the party
who earned it, and unearned in
ccme by the party who controls the
property.
Passage in 10 Days Seen.
II the Downy liberalized pension
plan is offered, administration
leaders are expected to take the
position that 1t has no place in this
defense tax bill Chairman George
of the Finance Committee said yes
terday the pension proposal should
be considered on its merits as a
separate bill.
The plan is to start next July
paying $40 month to all persons
no longer employed after go, and
increasing the amount $50 in 1914
to be accompanied by higher pay
roll taxes.
Senator George said he thought
the tax bill might pass by Thursday
or Friday, except for the discus
sion that may be provoked by the
community -property-State amend
ment. In other reliable quarters
the belief was expressed it will take
10 days to bring the measure to a
final vote.
The new excise levies on numerous
everyday expenditures are likely
to produce considerable debate.
The bill raises many existing excise
rates and brings in long list Of
articles not now taxed.
Prompt Action Urged.
1T is very desirable to get final
action on the bill promptly. Senator
George said yesterday, 80 that tax
payers will know what they have 10
meet, and also because it is esti-
mated the Treasury is losing 2,500.-
900 a day until the new excise
levies and estate taxes are approved"
Discussing the Finance Commit
tees recommendation for joint
congressional group to work for cur
tailment of non-defenSe Government
spending, Senator George said:
IF set up at once, and work
is commenced at an early date, 1t
should be possible to accomplish
something on all Of the appropria-
ton bills that will be in the max
ing next fall and winter. That
provision in the bill is not a mere
gesture, because If this joint COM
mittee, representing the appropriate
ing and taxing committees, keep;
the public constantly advised of saw
ings that can be made it will have
considerable effect on appropria-
tions.
While it will not have authority
by keeping the public and Congress
constantly informed, the result vii
not be as negligible as some think
but, in my opinion. the committed
can be most effective"
Bill Called Fair Compromise.
Majority Leader Barkley joined
Senator George in hoping for pas.
4, sage this week, but admitted thai
two of the committee amendments
may prolong discussion.
Senator La Toilette, Wisconsin
Progressive, and a member of thu
Finance Committee, has not revealed
what course he may follow on the
floor, but some of his friends have
indicated he is not satisfied viii
the distribution of the new ia,
! Low fIaa hill CT
represented him as believing il
placed too much OF the new revenue
on the low-salaried groups.
Senator Brown, Democrat, o.
Michigan described the bill as fail
compromise between direct taxes
which he said will produce two
thirds of the total, and excise anc
miscellaneous levies.
Measure "Just Starter"
Senator Capper, Republican, Of
Kansas said that this bill is just
starter and next years will be
even sitter"
Senator Capper. member of the
finance group, told reporters that
the unprecedented revenue legisla-
ton sis a good bill" and added: 81
would have liked to see more Of 8
pay-as-you-go program, but this wa;
the best we could do. I believe we
are in for steadily increasing take:
from now on"
Assuming the bill goes through the
Senate substantially as it came from
committee, the final terms will bt
written in conference committee
with the House.
In addition to lower personal ex-
emption, and maAy changes in ex-
else commodity taxes, which were
not in the House bill, the conferee,
are expected to have the final say
on two important changes the Sen
ate committee made in corporation
| taxes. One was to eliminate the
special 10 per cent tax the House
| placed on companies whose earn
ings have increased recently, but
not to the point of being affected
by excess profits taxes. The other
was to increase the surtax corpora
ton rates from 5 to 6 per cent on
income up to SOS, 900 and from to
per cent on income above that
level.
Even with steady progress, it will
be at least mid-September before
the revenue measure is ready for
presidential signature, leaving tax
payers only six months in which to
prepare to meet the increased in
come payments that will be due
March IS.