Evening star., 1941-04-26
Tax on Foodsfuffs
Meets Little Favor
In Congress Halls
House Committeeman
Express Desire to Await
Reaction Of Public
Nv the Associated Press.

By the Associated Press.
Proposals for taxation of coffee
sugar and other foodstuffs met with
little enthusiasm in Congress today
but legislators said the grave inter-
national situation might largely out
weigh usual political objections to
such levies in the raising of $3,500,-
100000 of new revenue.
Experts on the staff of the Joint
Congressional Committee on Tax
alton suggested yesterday that con-
sideration be given to a levy Of )
cents a pound on coffee and l cent
a pound on sugar. as part of a long
list of excises designed to raise
raise s661 900 900.
Most members of the House Ways
and Means Committee said they
desired to await the reaction of the
public to the suggestions. Open
of the Treasury Department and the
suggestions of the congressional tax
experts will begin Monday.
Suggested Excise Levies.
Excise levies suggested for con-
sideration by the joint committee
staff included per cent tax on new
insurance premiums, SIS annual ia,
on the use of automobiles. yachts
and airplanes and varying levies or
electric light bulbs. pari-mutuel ma
chimes, bookmakers. slot machine,
and oil used for motor fuel.
These imposts would be in addi-
ton to a long list of excise taxes
recommended by the Treasury De-
partment along with it's proposals
for drastically higher surtaxes on
individual incomes and boosts in
corporation and excess profits taxes
Meanwhile. Republican leaders
began insisting on steps toward
realization of Secretary Morgen-
thau's proposal that $1,000 900 .OOC
be Topped from non-defense ex-
penditures. Mr.. Morgenthau said
he thought appropriations for the
National Youth Administration
Civilian Conservation Corps and for
parity payments to farmers might
be "re-examined" by Congress In
an effort to effect reductions.
Treadway Favors Action.
Representative Treadway, Repub-
lican, of Massachusetts,. senior
minority member of the Ways and
Means Committee, expressed belief
that Congress ought to carry out
Mr.. Morgenthau.s suggestion for
economy before either spending any
more money or raising taxes.
House Majority Leader McCor-
mack told newsmen the administra-
ton leadership in the House had
made no plans as yet to adopt
the Treasury Secretary's suggestion
Representative Mccormack said he
personally opposed final congress
sional approval of the Senates
action in voting the sum of $685.
000, 1000, not in the budget, for parity
payments to farmers.
STAN OHerS Suggestion.
The suggestions for the long list
of excise taxes were given the COM
mittee by Colin F. STAN, chief of
staff of the Joint Congressional
Committee on Taxation.
Without directly recommending
adoption. Mr.. STAN suggested the
following excise levies might be con-
sidered:
Five cents pound on coffee and
cocoa, estimated to yield a total of
$130, ,000, ,000 10 cents a pound on
tea, yield $8,0O0,0O0; l cent a pound
on sugar, S69, 10000
Five dollars on use of automobiles
dncluding trucks, yachts and air.
planes Except for those operated
by the State and Federal Govern
ments), $160000,000.
One per cent of the amount OF
premiums on new insurance policies
including life, industrial, marine
inland, fire and casualty. Policies
in force at the time law became
effective would not be affected
Estimated to yield $45, 600 900.
One cent a bulb on electric light
bulbs, 5000 900; 2 cents a gallon or
motor fuel oil, no estimated yield;
311 per cent on production of nat.
ural gas, $51 500 900.
An unspecif1ed levy on pari-mu.
tuel machines and bookmakers
$50 ,000,0 900; lease of motion pictures
S per cent of rental, $4,000, 900; in.
creasing capital stock tax from 81 III
to $1.50, $50, 900 900; coin-operatec
devices, per cent of price for which
sold or leased.
The proposal also included
placing second class postage on 9
paying basis, exclusive of county
free delivery" by increasing rate,
an unspecified amount. 1t was esti.
mated this would bring in $78, ,O00, ,00O