Evening star., 1941-09-04

tCOnUlnuSO fTODl FlISt fdScD
be borne in mind in approaching
lower incomes.
Chairman George took the floor
against the Adams amendment, de-
claring it would take S200,000,0 ,00C
out of the bill, or about three-fourths
of the additional revenue expected
from the lower committee eXemp-
tions.
Defending the amounts fixed by
the committee, Senator George COM
pared them with the exemptions in
Great Britain of $3.50 for married
persons, 1925 for single persons and
5000 for each dependent. Here the
allowance for dependents is left at
$500.
In Canada, he said, the eXemp-
tions are the same as proposed in
the pending bill, and inquired;
Are the American people less able
and faced with less necessity to pay
than the people of Canada?"
Answering criticisms of the bill as
a hodge -podge," the Georgian de-
clared that until you have brought
in as large number Of taxpayers as
you reasonably can. you have no
basis on which to build sound tax
structure" e.. -
Adams Falls in Line.
Senator Adams said he would go
along with the committee in lower
ing exemptions because he thought
it would be we'll to bring to the peo-
pie a realization of the cost OF
appropriations that are received
with favor in this body" His only
complaint. he said, was over the ratio
of exemption between married and
single persons.
Since the lower exemptions have
the effect of raising the tax due
from higher salaries also, Senator
Wiley, Republican, of Wisconsin sug-
gested that if the lower exemptions
are defeated Senators would be re-
ducing their own taxes by Sl265O.
Senator La Toilette replied he was
arguing only for the low income
groups and pointed out that addi-
tional taxes could be levied from
those above present exemptions by
changing the rate of tax.
Senator Clark said he would vote
for the bill reluctantly, but regards
1t as a "haphazard, unscientiflc
patchwork" bill. Every tax bill
passed since he has been in the
Senate, he said, has been accom-
panied by solemn pledge that 1t
would be followed later by con-
scientious, thorough overhauling OF
the basic tax structure to remove
inequities.
Meanwhile, it appeared unlikely
the Senate would be able to pass
the bill this week because of ex-
tended debate expected on the old
age pension amendment, and the
effort to change the rule governing
division of property between hus-
bands and wives for income-taX pur-
poses in the eight community prop
erty States.
Higher Estate Tax Beaten.
A move by Senator LA Toilette to
impose another 8,0000 900 on estate
taxes by raising rates and lowering
the exemption, was beaten on a roll
call, AZ to 19.
The bill already increases the yield
from estates by $141 ,SO0,0o
Along with heavier rates, Senator
La Toilette sought to cut the eXemp-
ton from $4,000 to S25,000.
The Senate then approved without
q roll call the committees elimi-
nation of the so-called 10 per cent
penalty tax imposed by the House or
corporations whose earnings have
improved but not sufficiently to be
reached the excess profits levy.
Moving rapidly through non-con-
troversial phases of the bill yester-
day afternoon, the Senate took the
following steps:
Adopted the Byrd amendment fol-
the creation of join congressional
committee to look for economies ir
non-defense spending, in an effort
to save between $1,000, 100000 anc
$2,000,000000 to augment the new
tax program.
Drop Broadcast Time Tax.
Ratified the committee action ir
striking out special House taxes or
radio broadcasting time and bill
boards. The tax on sale of radio
time was estimated to raise only
$4500,000 net, and the billboard taz
about $1,700,000.
Approved the increase from tc
10 per cent in the tax on monthly
telephone bills.
Approved the reduction in the tax
on bowling alleys and pool tables
from SIS to $40 a year.
Adopted the committee amend
ment restoring the exemption grant
ed by existing law from the excess
profits tax on the mining of strategic
metals.
Approved committee action ir
eliminating the House tax on soft
drinks.
Early yesterday the Senate hac
accepted committee increases of
per cent in the House rates or
corporation surtaxes. This make:
the rates instead OF 5 per CEN
on the first $4,000 and 7 insteac
of 6 per cent above that level.
. Senate also gave approva