Evening star., 1941-08-03

Expressing belief that some
way should be found to cut pres
ent income-taX exemptions for
single persons from $500 to $3.50
and for married persons from
$4,000 to $500, the President
said most Americans who are
in the lowest income brackets
are willing and proud to chip in
directly" to the defense program
even if their individual contribu-
tions are very small in terms of
dollars"
Addressing Representative Dough-
ton as My Dear Bob" Mr.. Roose-
velt said he was convinced that
the overwhelming majority OF our
citizens want to contribute some
thing directly to our defense and
that most of them would rather do
1t with their eyes open than to do
it through a general sales tax or
through multiplication of what
we have known as nuisance taxes
Sees Discrimination.
In reference to the excess profits
tax, Mr. Roosevelt said the levy
approved by the committee was
clearly discrimination" in favor
of certain types of corporations
which he said might be making 40
or 80 or so per cent" on their equity
capital and still would not have to
pay any more than last year.
1T is my definite opinion that
they ought to contribute to the cost
of our great defense program" the
President wrote, far more heavily
this year than last year or the year
before. But just because they hap
pened to have made equally large
profits in recent years. they are
called on to contribute no more to
the national defense under the pro-
posed bill than they did before"
Discussing the joint return pro-
vision, storm center in the House.
the President said he concurred
heartily in the Treasury opposition
to joint returns unless substantial
relief" was granted to the earned
income of both husband and wife.
May Influence Vote. =
His suggestion is likely to infu-
ence the vote in the House when
the issue comes up tomorrow. OPP
position to the present provision,
chiefly from legislators representing
the nine So-called community prop
erty States, already has forced the
House leadership to agree to a sepa-
rate vote on the matter-the only
such concession made for the entire
tax bill-and some legislators pre-
dicted Mr.. RooseveltS action would
seal the doom of the provision. Its
elimination would result in a loss
of about 1928 900, 900 additional rev.
enue.
Speaker Rayburn forecast Friday
that the provision would be stricken
from the bill and other legislators
said many members who had been
wavering now would vote for its
elimination.
The President. who attached a
letter from Secretary Morgenthau
setting forth the Treasury's posi-
tion on each item, also suggested
that the committee might consider
it worth while to study the desir-
ability of permitting the filing of
low income returns through local
post offices.
Three Months of Study.
Mr.. Doughton said in his letter
to the President that the commit
tee had devoted three months of
study to the bill and that all the
matters mentioned by the Presi-
dent had received careful considera-
ton in that time
"As to mandatory joint returns
Mr.. Doughton said, I'VE are pleased
to learn that you, as well as the
Treasury, approve of it in prin-
ciple - .. While the Treasury
gave belated approval to mandatory
joint returns in the pending bill,
such approval was qualified upon
(See TAXES. Page A-l0.)