Evening star., 1941-07-24


financing extraordinary defense
ana arms aid programs hare
called for approximately t,Uo-
thirds OF needed reUenue through
tarutiOn and One-third through
additional borrolDing Although
supplemental appropriation re-
quests haue upset this formula,
President Roosevelt has said fur
tIer tar increases can ,Odit until
nert year-lUhen there DiH be
another reuenue measure.
By the Associated Press.
A $3.50 ,2OO, 900 tax bill-biggest in
the Nations history and designed
to make both individuals and cor
porations dig deeper than ever to
help finance the defense program
headed toward House consideration
today after approval by the Ways
and Means Committee.
eliminating three months of
work, the committee stamped its
final approval on the measure last
night after a number of last-min-
ute changes. among them inclu-
sion of unprecedented levies on ra-
dio broadcasts and billboards.
New SurtaXeS on individual net
incomes starting at 5 per cent on
the first dollar of taxable income
and ranging up to the present maxi
mum of IS per cent on incomes over
s5,OO0,00O would virtually treble the
nf the lower
and middle brackets.
How Increase Would Apply.
For instance, a married man with
two children and $4,000 of net in
come who now pays no tax would
pay S11 under the proposed levies.
A man with the same number OF
dependents and a $4,000 net income
who now pays $74.80 would pay
S2O2 40 under the new schedule.
Just before completing the bill
the committee struck out proposed
excise taxes on candy and chewing
gum, which would have yielded Sl8,-
200 600. and taxes on electric signs
and cutlery. The latter would have
produced about S6,000,000.
Another last-minute change pro-
vided for a slight additional boost
in estate and gift taxes to produce
S38 900 900 more than was previously
agreed on tentatively.
The tax on broadcasting. estimated
to produce about S4500.000 annually.
would be levied on the net time
Of OF IN nf
100000 annually. The rates would
start at per cent on sales of
to S500,0O0, increase to 10
per cent on those from S500.000 to
81 100000 and reach a maximum of
Is per cent on all above that sum. .
Persons engaged in renting bill
board space to others would be re-
quired to pay an occupational tax of
$5 yearly on every billboard of 300
square feet or less; So on those
between 300 and 900 square feet and
S11 on those larger. 1t was estimated
this levy would yield s7,000,000.
The measure was scheduled for
committee introduction in the House
today and administration leaders
planned to take it to the floor Tues
day for three days of debate under
tight, special rule which would
prohibit all but committee-ap-
proved amendments. The rule is
to be debated Monday. Passage OF
the measure next week in approx
imately its present form was viz
tually assured, leaders said. Major
changes might be made, however,
when the bill reaches the Senate.
The Treasury estimated that the
new individual income surtaxes
would produce s1,152 100000 of the
new revenue and that Sl,322 900, 900
of the balance would come from
corporations. The higher estate and
gift taxes we're counted on to yield
about Sl5l 100000 and new or high
er excise levies on almost tUo-score
commodities or services for the re-
1902, 100000.
Joint Returns Required.
About $500 100000 of the individ-
ual income tax revenue was esti-
mated to result from a provision of
the measure requiring that hus-
bands and wives with separate in
comes make joint returns. Present |
law permits separate returns. Joint |
returns were expected to force the
total taxable income of many fami-
lies into the high surtaX brackets.
In boosting corporation taxes, the |