Evening star., 1942-04-28
Doughton Finds
.LittIeDenldnd
For Income Top
Ways, Means Group
Hears Tox Expert
Discuss Proposal
Earlier Story on Page A-4.)

tLSFucr cSOry On &c A-1J
By the Associated Press.
Chairman Doughton reported
today that he had not found
"any feverish demand" in the
House Ways and Means Commit
tee for a limit of SIS 900 on indi-
vidual incomes after payment of
taxes as recommended by Presi-
dent Roosevelt.
He made the statement after the
committee had discussed the Presi-
dents message of yesterday with
Randolph Paul. Treasury tax ad-
wiser for two hours behind closed
doors.
Representative Doughton said
later that he had not canvassed the
committee on the $25 900 limit ques-
tion and was expressing only q per
sonal opinion of the members first
reactions.
Mr.. Paul advised the members
that I'VE are entitled to a pretty lib
eral construction" of the message,
Mr.. Doughton said, adding that the
individual income limitation was
discussed only generally. One ques-
ton that arose, he said, was whether
State and local, as well as Federal
taxes, should be considered in i'm
posing q flat maximum salary an
individual might retain.
At the same time, Mr.. Paul said
he believed the President wanted no
change In the existing formula for
determining corporate excess profits
taxes, and he expressed the personal
opinion that the administration
would like to approach" 100 per
cent rates If consistent with wartime
production.
No Change In Formula.
Excess profits taxes now are COM
puted on either an invested capital
or average earnings base-alterna-
tiyes enacted by Congress over OBJ
jections of Treasury ofilcials. The
committeeman have heard reports
that the administration wanted to
abandon the average earnings for
mula, but Secretary Morgenthau
said yesterday the Treasury did not
contemplate making such asrecou-
mendation.
Mr.. Morgenthau also said yester-
Day that Mr.. Paul would present the
committee an explanation of how
incomes might be limited to the
SOS, 900 figure mentioned by the
President. But Mr.. Paul said after
the committees morning session
that I'VE aren't ready yet" with de-
tailed tables or recommendations"
Taft Opposes Flat Limit.
On the Senate Finance Commit
tee, Senator Taft declared Il object
strongly to the principle of a fiat
limit on all individual incomes"
why $25,000?" he asked in a
statement. why not $4,000? Why
not $500 if we accept the principle
of giving man only what he needs
to live on?
"A literal compliance with the
Presidents plan would disrupt
further the business organization of
the United States, particularly the
smaller manufacturers, wholesalers
and retailers, cripple many of our
great private charitable and educa-
tional institutions and community
chests, and bring great distress to
many older individuals living on
tfie.i life savings invested in stocks"
Backs Reasonable Limit.
Senator Byrd said on the other
hand that he favored legislation to
fix reasonable salary limit" al
though he was not prepared to say
that $25, ZOO was necessarily the cor
rect limit.
Support for the proposal also came
from Senators Capper, Republican,
of Kansas, and Guffey. Democrat,
of Pennsylvania, Finance Commit
tee members.
Income limitation may be suit
able in these times, and I'll support
the Presidents proposal as a war
measure" Senator Capper declared.
Another Democratic member of
the committee, Senator Radcliffe of
Maryland, said he had an "instinc-
tive leaning toward the profit idea
as an incentive to do things" and
added:
There wouldn't be much incen-
tive to go beyond the limit proposed
by the President"