Evening star., 1941-09-02
Record Tax Bill
Sent 10 Senate
By Committee
Measure Will Ruise
$4,000, 100000,
George Predicts

lUe OeIldJ6 IlldllCc SOllllllIICo
formally approved the record break
ing tax bill today and sent 1t on to
the Senate for debate tomorrow.
The bill. biggest in history, was
estimated by the Treasury to pro-
duce s3,672 400 900 and by Chairman
George of the finance group to yield
approximately S4,500,000000.
Senator La Toilette, Progressive,
of Wisconsin, committee member,
told reporters he would file minor
ity report criticiZing the measure.
Senator George announced that
Senator Clark, Democrat, of Mis-
souri, reserved the right to file
minority report in opposition to the
committees decision 10 broaden the
income tax base by lowering per-
sonal income deductions from $4,000
to $500 for married persons and
from $500 to $3.50 for single indl-
viduals.
George Sees Quick Passage.
Senator Connally, Democrat. OF
lthdH lCSCl Ftu illt lSllt " BOl III
opposition to a committee amend
ment prohibiting husbands and wives
in the So-called community property
States from dividing income in an
effort to lower their taxes.
Senator George said that II his
calculations of a S4500000,000 yield
proved correct, Federal revenues
would approach sl5,OO0000,000 next
year.
Although several controversial
items may develop considerable Sem
ate debate, Senator George appeared
optimistic that the revenue measure
would be approved by Saturday
night He said that if the bill
carrying s456, 100000 more than the
TreaSury-estimated House total
we're passed in substantially its pres
ent form there would be little diff
Guilty in adjusting Senate changes
when a joint conference committee
considers the measure. He said he
hoped the conference group. COM
posed of members of the Senate and
House taxing committees, could be-
gin its work a week from today.
Senate Changes.
Topping the list of Senate COM
mittee changes was the amendment
to cut from 50 900 to 81 1.500 the in
come exemption for married persons
and from $500 to $3.50 the exemption
/ for single persons. The change
would raise approximately S300.O00
900 annually and would require
100000 additional persons to file
| income tax returns.
Other controversial points we're:
The provision eliminating the
right of husbands and wives in the
eight community property States
Louisiana. Texas, Arizona, New
Mexico. California. Idaho, Washing
ton and Nevada-to split incomes in
filing their returns, procedure
which means lower taxes in many
instances; and
The provision sharply increasing
the excise levies on some manufac-
tured articles,
Clark Raps Bill.
! Still another potential time cor-
| sumner was the proposal by Senator
! Downey. Democrat, Of California to
write into the tax measure a s30-a-
month pension for persons over so,
| starting in 1914. The committee re-
| fused TO incorporate this in the bill.
| but Senator DoWney threatens TO
raise it on the floor.
While there was little Senate dis
! agreement with the idea that sharply
increased taxes were necessary for
the defense effort and the aid-to-
Britain program. Senator Clark.
Democrat. of Idaho told reporters
that the proposed revenue bill mot
only will fail to solve our fiscal
problem, but will pinch the middle
and lower incomes unmercifully.
The cost of living is going up on
the one hand, on the other. this
huge increase in taxes will put the
small man on a fixed income prac-
| tically out of business. II will
freeze the enormous fortunes which
have been accumulated already. and
it will make it almost impossible
for the younger men of today ever
to accumulate even moderate in.
comes.
IF the bill would solve the fiscal
problem. then almost everybody in
! America would be IN favor of it. But
we have obligated ourselves for
about $4,000, 100000 of spending
during the next year. This bill
doesn't even make a dent in that"
Senator Nye, Republican. Of
North Dakota, like Senator Clark
an opponent of administration for
eign policy, told reporters that
while he thought the Finance Com
mittee bill an improvement over
that passed in the House, it should
be made clear to taxpayers that
this is only the beginning of higher
taxes if our present foreign policies
are continued"