Evening star., 1941-11-11
Committee Studies
Roosevelt Plea for
Anti-InfIation Tax
. z Weeks Delay Indicated
During House Debate on
Price-Control Measure
By the Associated Press.

6y the Associated Press.
The House Ways and Means Com
mittee today weighed request from
President Roosevelt for immediate
action on a big anti-inflation tax
program, but members seemed dis
posed to defer the problem until
after the House acts on pending
price-control legislation.
In private expressions of opinion,
committeeman said that the price
control measure was anti-infation
ary in purpose and that the regula-
tions 1t finally contains would help
to decide what further precautions
against imitation should 60 into a
new tax bill.
If the committee formally adopts
that attitude. delay of two weeks
on the Presidents appeal seemed
likely. The House will be occupied
tomorrow and Thursday with con-
sideration of Senate changes in Neu-
trality Act revision legislation, and
the price-control bill heads the cal
endar after that.
: President Roosevelt appealed for
speedy consideration of a tax pro-
gram in letter to Chairman
Doughton of the committee, which
decides on all new revenue measures
The committee last week postponed
consideration of the Treasury's pro-
posed new 4,85OOOO,0OO tax pro-
gram, but Mr.. Roosevelt did not re-
fer specifically to this set of recon-
mendations.
Letters Made Public.
The Presidents letter and Mr.
Doughton's reply were made public
by the White House last night.
1T seems clear" Mr.. Roosevelt
wrote, that If we are to prevent
further sharp increase in the cost of
living and in the cost of the defense
program itself, we must take imme-
diate steps to absorb large amount
= OF purchasing power through addi-
!, tional taxes and, incidentally. to pay
cash for greater part Of our defense
production"
1t should be remembered, he con-
! tinued, that taxation is a necessary
complement Of price control legisla-
tion because the continuing effec-
tiveness of price control is largely
dependent upon the restriction Of
the demand for goods"
Mr. Roosevelt expressed the view
that imitation in itself was "a most
tnequitable form of taxation"
Treasury Bill Deferred.
Mr.. Doughton, in his reply. agreed
that "the dangers of imitation must
be of immediate concern to all of us"
but he added that the price control
bill would require the full time and
effort Of the entire CHouse) member
ship" for the moment.
Speaking of shelving the Treasury
program, Mr. Doughton wrote that
the committee last week tempo
rarily deferred" action on it-and he
underlined the words temporarily
deferred
This program, which proposed a
IS per cent withholding tax on SAL
aries and which would have made
the effective tax rate about % per
cens on average incomes. was con-
demned by some committeeman.
They asserted that 1t was offered
in place of "a proper price-control
bill"
Warning by Forum Speaker.
Representative Gore, Democrat.
Of Tennessee meanwhile said last
night that price-control legislation
recommended by the House Banking
and Currency Committee was IAN
open invitation to imitation"
In an address in The Stars Radio
Forum over N. B. G. Mr.. Gore as
serted:
The administration bill, as in
roduced and reported by the COM
mittee. contemplates the placing
Of ceilings over commodities on a
selective basis. I do not
believe the selective or piecemeal
method will be effective and I have
proposed a substitute bill to place
a price ceiling over all commodities
by law.
"One fundamental difference be-
tween overall and piecemeal
method is that the selective or piece
meal method leaves the general
price ceiling free to rise, whereas
the application of a general over
all ceiling would call halt to the
rise of general prices. Initiation does
not come about because of selected
price rises. 1t is the product Of a
general price level runaway"
Complete text of Representative
Cores address on page B-6)
On the Senate side, associates said
Chairman George of the Finance
Committee believed any major reve-
nue. legislation should be delayed
until next year. 1t was added, how
ever, that Senator George was not
averse to laying the committee
groundwork for a new bill before
Christmas.
The Presidents Message.
The text of the Presidents letter
TO Mr.. Doughton follows
II understand that the Secretary
Of the Treasury recently consulted
with you and other congressional
leaders about the imitation problem
and the urgency of prompt tax leg
islation to counteract the inf1ation-
ary pressures arising from the de-
tense program. 1t seems clear that
II we are to prevent further sharp
increase in the cost of living and
In the cost of the defense program
itself, we must take immediate steps
to absorb large amount of pur-
chasing power through additional
taxes, and incidentally to pay cash
for greater part of our defense pro-
duction. We must remember that
taxation is a necessary complement
Of price control legislation because
the continuing effectiveness of price
control is largely dependent upon the