Evening star., 1942-03-10
Sales Tax Advocated
By New York State
Commerce Chamber
Moderate Increase in
Corporate and Individual
Income Levies Proposed
BY the Associated Press.

foy Inc hoooCldttu FIeSS
The New York State Chamber OF
Commerce proposed today that Con-
gress Immediately enact q retail
sales tax and moderately higher
corporate and individual income
levies to raise $4,000, ,000,000 in new
revenue
w. ]. Schieffelin. jr., of the cham
beI'S Taxation Committee told the
House Ways and Means Committee
the problem of raising the rest of
the s7,610,000,0 900 President Roose-
velt has requested should be de-
ferred until next fall.
Mr.. Schieffelin made these recon-
mendations:
l. Raise S4,000,000 900 through a
war retail sales tax" with rates
ranging from per cent TO 10 per
cent.
2. Raise 81 900 ,OOO, 900 by moderate
increases in corporation and indi-
vidual income taxes.
8. Raise another $4,000 900 900 next
autumn after experience with the
sales tax and higher corporate and
Greater Nom Defense Saving Urged.
In addition, he said, Congress
should make even greater savings in
non-defense expenditures than the
81 300, ,000,0 900 recommended by
Joint Senate House Economy Com
mittee
"We have had in mind for months
recommending withholding tax
collected at the source on gross in
comes paid out to individuals" he
said.
I'VE now feel that such a tax. in
addition to a drastic retail sales tax,
plus the 1941 rates, might have a
disruptive effect on the Nations
whole war effort, and should there
fore be held in allegiance at least
until our citizens have adjusted
themselves to the 1941 rates, plus the
retail tax and until our Government
imposes an effective price control
law including farm prices and wages,
thus insuring that the peoples
money will continue to buy what
they need instead of being chiseled
away by creeping imitation"
Treasury Plan Opposed.
Meanwhile, House Ways and
Means Committee opposition to
Secretary of the Treasury Morgen-
thau's tax progl am became so wide
spread that members began to pre-
dict that his goal of $3.50 900 900
in new revenue would not be
achieved.
They said no one could yet tell
whether the committee would ac-
cept the Treasury Secretary's prin-
cipal recommendations for raising
more than $4,000 900 in greatly
increased individual and corporation
taxes, but they said clear-cut oppo-
sition had developed to less impor-
tant suggestions.
Wide Change Of Heart.
Apparently there had been con-
siderable chance of heart since the
program was first presented, for
then individual members of the
committee indicated a generally fa-
vorable attitude toward the broad
principles of the Treasury's pro-
posals.
1t was learned. however. that
President Roosevelt has been ad-
vised that overwhelming opposition
already had developed to Secretary
Morgenthaus renewed request that
married persons be compelled to file
Joint income tax returns and that
Congress end the practice of per-
mitting oil operators to deduct up
to 27l2 per cent of their income an
nually as a depletion allowance"
Secretary Morgenthau told the
committee those two changes would
yield $3.50, 100000 in new revenue.
Two members said privately that
preliminary indications were that
this cutting away" would lead to
elimination of still other Treasury
recommendations. with the result
that the estimated yield of the new
tax bill would be reduced sharply
from original gueSses.