Evening star., 1942-08-11
Taft Says Tax Plan
Exempts IS Billion
In Low-Income Glass
Lo Toilette Says Rates
In House Measure
Are Too High

Hy the Associated Press.
Senator Taft, Republican. of Ohio
said today the new revenue bill
approved by the House would permit
&36 900. 900 900 income earned in the
lower pay brackets to go untaxed
Senator Taft made this observa-
tion after DR.. Joseph j. Klein of New
York City, former president of the
New York State Society of Certi-
fed Public Accountants, had urged
the Senate Finance Committee to
levy additional taxes on low in
come groups.
Before the committee met, Sena-
tor La Toilette, Progressive, of Wis
eonsin, ranking minority member.
had expressed the opposite view
that proposed rates on low incomes
were too high.
There it is DR.. Klein told the
committee. Get it if you can.
The public will be with you if
you levy a fair impost, for there
is general realization of the danger
to all of us from wild imitation"
Only Source of Big Amount.
Asserting that there was no
more tax gold in the corporate bills"
DR.. Klein said most additional
revenue must be obtained from in
dividuals. He said incomes below
$4,000 yearly afforded the only
source of obtaining substantial
amounts,
Senator Taft said this appeared
to be true. contending that if all
of the incomes above $4,000 ex
cept that now paid in taxes were
confiscated. only $4,000 100000 could
be obtained.
There is $4,000 100000 that is
not taxed at ALL Senator Taft
declared, "It is the income of peo-
pie who pay no taxes at all who
would have no taxable income under
this bill"
Senator La Toilette contended
that Congress and the Treasury
are only picking number from l to
10 when they arrive at goal in
dollars and cents for the additional
tax burden"
Hearings Near End.
The committee expects to complete
its public hearings Thursday on the
program already approved by the
House.
LAS far as I am concerned Sen
ator La Toilette told reporters, Il
am opposed to the drastic increases
contained in the House bill for the
lower income group of taxpayers,
and above all, I think they should
not be imposed until the loopholes
have been plugged and additional
revenue obtained from estates.
I'm my view. the House bill fails
TO provide revenue on the basis OF
ability to pay. 1t does nothing to
help small business. which is threat
ened with extinction by priorities.
It taxes the underpaid too heavily"
House Bill Provisions.
The House provides a $500 ex-
emption for single persons and ST 900
for married couples, compared with
the present $3.50 and 81 500. The
normal tax rate would be raised
from to per cent, and the surtax
on the lowest bracket taxpayers in
creased from s to l3 per cent. In
addition, the House voted a with
holding levy of per cent on salaries
and dividends. to be collected at the
source starting next year for appli-
cation to the tax due March Is. 1914.
The House bill would be taxing
the food off the tables of the lower
income groups" Senator La Toilette
said. reducing their standard OF
living and making it impossible to
have adequate medical and dental
care"
Asserting that large proportion
Of selective service registrants had
been rejected because of malnutri-
ton, bad teeth and various bodily
defects. he added:
This is important with the pros
pect of a lengthy war. Our Aeople
have got to be efficient to fight
war and to produce the material TO
carry on that fight"
Additional Tax Load.
He said the House approved ex-
emptions meant that single persons
making 1852 a week would be liable
to the tax, as would married persons
making s2308 However, he said,
1.-The SIS per cent of American fam
flies receiving less than $4,000 in
1912" would be asked to carry an
additional 1885 900 900 tax load.
In addition to advocating higher
estate taxes. Senator La Toilette
said he thought the Treasury was
on the right track in recommend
ing that larger proportion of the
revenue. be raised from middle
bracket incomes.
Further, he said, Congress should
consider taxing the income from Sc
curities now tax-eXempt, abolish
percentage depletion allowances for
mining and oil properties and re-
ouire the payment of taxes by the
recipient of income in community
property States.
Yesterday the committee rejected
pIOpbSdl WHICH WOuIu nave 1e-
uuired the payment of taxes by the
recipient on all earned income in
the eight community property
States.
Vote Is ii TO 4.
The action came on a vote of
II to 4.
Then that means the community
property States can rest at ease for
at least another year?" a newsman
asked Chairman George
That means they can rest at
ease" responded Senator George
He estimated that inclusion Of the
provision would have added approx
lmately sS5.000,0 900 in new revenue
based on the income tax rates set
by the House.
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