Evening star., 1941-11-27
Pending Tax Boosts
Won'tHit Al Income,
Morgenihau Says
Treasury Seeks to Alloy
Confusion on levies
Now Being Formulated
ly the Associated Press.

By the Associated Press.
Secretary of the Treasury Morgen-
thau said today the treasury wanted
no change in income taxes on this
wears income of either individuals
or corporations,
The Treasury head said he was
making this announcement in order
to satisfy numerous inquiries from
the public resulting from confusion
about new tax proposals now being
formulated by the Treasury and in
Congress
increases noted in the s3.500,-
100000 tax bill passed in Septem-
ber, however are applicable to
l94l incomes
So far as the Treasury is con-
eerned, Mr. Morgenthau said, any
recommendations about tax pro-
posals now pending in Congress
would not apply to l94l incomes.
The Secretary declined again.
however, to give any details of the
tentative Treasury proposals for
next year. He refused also to COM
ment on a public suggestion of
Chairman Mariner S. Eccles of the
Federal Reserve Board that the new
taxes first tap the long purses
rather than the short ones"
Opposes Increase in Lower Brackets.
Mr.. EccleS said he preferred
higher taxes on corporations and
the higher and middle individual
income brackets rather than on the
lower income group. Unofficial re-
ports have indicated that the Treas
ury might propose heavier taxes on
the low income groups.
Mr.. Morgenthau remarked that
Mr.. Eccles had not sent him copy
of the speech and he had not read
It. 1t was delivered Tuesday night
in New York.
Il have been going along and try
Ing not to make trouble for any one, "
Mr. Morgenthau said, but YOU know
1t is difficult to get every one to row
10 the same stroke that the coxswain
calls"
Compulsory Savings Considered.
While declining to express any
opinion on suggestions for a COM
pulsory savings program, Mr..
Morgenthau said such proposals
were being considered along with
all other methods of preventing in
fation
In his announcement that the
Treasury sought no changes in l94l
income taxes. the Secretary said
that applied particularly to the tax
on capital gains and losses. Ap-
parently many people with securities
invetment were curious about this
tax so that they could determine
whether or not to make purchases
or sales Of securities before the end
of the year in order to clarity their
tax position.
At the Capitol it was disclosed
that s4500,000 fund asked by the
Treasury for collection and enforce
ment of the IS automobile use tax
had been stricken from an omnibus
deficiency bill by House Appropria-
tions Subcommittee.
Repeal of Levy Urged.
Representative johnson. Democrat,
Of Oklahoma said the subcommittee
instructed him to talk to House
leaders. advising them of the step
and urging support of his bill to
repeal the use tax. The subcom-
mittee's action, while by unanimous
vote. is subject to review by the full
Appropriations Committee.
The s4,500,0 900 was asked by Com
missioner Guy Helvering of the
Internal Revenue Bureau to defray
costs of collecting the S. use tax
from February !. when it becomes
effective, until June 80. end of the
fiscal year. Mr.. johnson estimated
it would cost s8000.00 to collect the
tax for full year.
MI. Helvering was reported to have
estimated 3400 additional employees
would be required to collect the tax.
Congressional estimates of its Weld
have approximately $50 100000