Evening star., 1941-04-22

uUOut SZO.JU IOf GUSIY mum,
Uomun and child in United
States.
Hy tte Associated Press.
Thousands of taXpayerS-little
men and big men alike-will have
to pay two or three times their
present income tax, informed sources
predicted today, if Congress adopts
the Treasury program for raising
S3,500,000,000 in new Federal rev.
enue.
The program. authoritative reports
said. carried the following major
provisions:
Individual incomes-an increase
of the present "A per cent basic
tax rate to Sc per cent. Also elimi-
nation of the existing 10 per cent
earned income credit deduction.
Personal exemption rates would re-
main unchanged.
(The normal income tax rate is
per cent. But an additional 10
per cent of this tax is added as a
special defense levy. making it
the equivalent of "A per cent
income tax. A new rate of s per
cent. plus 10 per cent of the tax
for defense, would be equivalent
to 6.6 per cent on taxable in
Gomez
Income surtaXes-Steep increases.
Whereas surtaXes are now imposed
on taxable incomes in excess of
$4,000. they would begin with those
over $4,000. Present surtaxes range
from to rs per cent and are levied
In addition to the basic "A per cent
normal" rate.
Higher Corporate Levies.
Corporate incomes-An increase
from the present "a per cent to 30
per cent.
Travel-A tax of about 10 per cent
on railroad plane, bus and other
transportation tickets.
Checks-A 2 cent tax on each
check drawn.
Gasoline cent more, making the
Federal tax 212 cents per gallon.
Cigarettes-8 cents tax on pack
OF 20, lucent boost.
Other items-Increases in beer,
wine, whiskey and automobile pur-
chase taxes. New levieS on candy,
Chewing gum, soft drinks.
Federal securities-A plan to reach
with taxation all or part of the
income from the billions of dollars
invested in hitherto taX-eXempt
Government bonds.
An advance in the basic income
tax rate to sc per cent and repeal
of the earned income credit would
hit taxpayers pockets something like
this:
A single person with a taxable
earned income of $1,000 after all
deductions except his personal ex-
emption of $500 would pay 1920,
instead of $40 as at present.
A childless married couple with
taxable earned income of $4,000
would pay s66 instead of $1,000.
New Surtaxes Higher.
The new SurtaX schedule, details
of which were not available, was
reported to mean stiff increases for
higher incomes, particularly in the
brackets between $4,000 and $25,000.
One member of Congress, whose
principal source of income is his
$4,000 salary, said he had figured
roughly that his tax would increase
from $500 to $500.
The detailed Treasury proposal was
submitted to the House Ways and
Means Committee at a closed meet
Ing yesterday but Chairman Dough-
ton declined to give it out. saying
he did not wish to alarm the people
over something that may not hap
pen" Available details came from
O few other commttte members
Mr.. Doughton explained that,
while he personally hoped the COM
mittee could write a S3,500,000 900
measure, some of the Treasury pro-
posals might be rejected. He said
his committee was going to write
this bill"
Details of the Treasury plan, he
added, would be disclosed, probably
later this week, by Secretary Nor
genthau, after Treasury tax experts
have had a chance to consult with
the staff of the Joint Congressional
Committee on Internal Revenue
Taxation. 1t was indicated that the
joint committee staff and the Treas
ury we're in disagreement over some
items, notably the surtaX schedule.
Mr.. Doughton's refusal t. give out
the plan brought a statement from
Representative TreadWay. Repub-
lican, of Massachusetts, that Repub-
lican committee members were op-
posed to secrecy" Mr.. TreadWay
added that the Republicans would
demand that Mr.. Morgenthau be
summoned at once and the plan
publicized.
While the legislators were strug-
Cling with the revenue bill, the
Treasury yesterday reported total
tax collections of s1,472, ,294.600 in
March, the largest for any month in
the Nations history.
Oficials said that, as far as they
could determine, the previous peak
was March. 1919, when collections
totaled $1,311.00O, O,0O0, of which ST.
183.O21, 1893 was from income and
excess profits taxes. This compared
with 81 ,951 ,060 collected on in
comes and excess profits last month.
The March total was $61l ,l26,798
greater than for the same month
last year. Spending gained also.
however, mainly as result of the
defense program. The total Fed
eral outlay in March was $l,400,-
674,654. and the debt increased by
S1,083,2192S6. In March of last
year, spending aggregated s1,006,-
371,575 and the debt rose STA, $780,
O52
Individuals paid 1863 ,203, ,145 in in
come taxes last March, an increase
of s213,127, ,431 over the same month
a year ago. Corporation income
taxes amounted to $521,871 ,596, an
increase of S227. 800 1893.
Collections from other major taxes
also we're higher. Miscellaneous
revenue taxes totaled $200,O94 ,621, an