The Waterbury Democrat. [volume] (Waterbury, Conn.) 1917-1946, 1942-03-03

payments of taxes on 1941 income
in addition to the levy on current
earnings.
Under New Proposals
Under the treasury's new propos-
ais q married person with two de-
nendents having net income OF So
IlOO-after deductions for contrlou-
tions, interest, other taxes, etc.
would pay $ll8 income tax, COM
pared with $58 under the present
law. A single person with the same
income would pay $47O, compared
with the present 1921.
The pocketbookS OF all Amerl-
a4s--axeept the XerL- lQQrA -MQuHQ De
hit by the new taxes. Persons IN
the lower and middle income bracK-
cts would bear the brunt OF the
increases in individual taxes Tor
two reasons. The rates on the
wealthy already are high and treas
ury experts also figured that anu
lnflationary aims of the program
could be attained only by "mopplhg
nm" mart of the surplus earnings OF
persons with incomes under Sl5,o0o'
Morgenthau warned that the
United States is confronted with "a
crave threat of initiation
I'VE should, therefore, tax SO as
~ Withdrawn the greatest possible
volume of purchasing power at inns
time, when money incomes are nlgh
and the quantity of goods for civil
ian use is shrinking day by DAY
because of the demands OF our war
effort" he said. a.. the way to
prevent imitation is to prevent peo-
ple from engaging in the futile ell
fort to buy more goods than can
be produced" .', o..,o..
He recommended that Congress
also raise $2,O0O,00O,O00 more a year
by extending the social security
program and payments.
Would Increase Revenues
The proposed new taxes and So
cial security payments would m
crease federal revenues by more
than $4,000 900, 900 a year and reach
the goal of 27,ooo,oO0o set by Pres
ident Roosevelt in his budget mes
sage. .,.-.-. -
Mongenthau urged attainment OF
this goal mot as the maximum but
as the very least that the American
people can afford to provide at thls
critical time"
He reiterated opposition to gen.
eral sales tax because 1T bears dis
proportionately on the low income
groups whose incomes are almost
wholly spent on consumer good"
and Increased prices and makes
price control more difficult"
Personal exemptions for income
tax purposes and normal tax rates
for both individuals and corpora
tons would not be changed. The
surtax rates on individual incomes
would be increased sharply, excess
profits and corporation taxes would
be increased and a war surtaX
added.
The earned income credit now al
lowed on individual returns would
be abolished.
Enactment of the treasury's pro-
gram still would leave deficit OF
s3o 300 900 in the 194A3 fiscal year,
beginning next July /, when war
expenditures alone will reach an es-
timated $4,000, 900.
Even if all the administrators
tax proposals were effected, the
treasury would have to borrow more
than $4,000 100000 month to fl
nance war.
so Percent Increase
s,aI ifNpntNNn 70 nn1-
lections would be increased 60 per
cent under the treasury's proposals,
from $5,OO0,000,000 to $4,000, 100000
a year: and corporations taxes, 40
per cent, from $7,20000o,0O0 to $lo,-
2OO,O0O,OO0.
The surtax, which now starts at
six per cent on the first $4,000, would
start at II per cent on the first $500
of taxable income and jump to 20
per cent at 81 500 bracket. This sur
taxed would climb to 8 per cent
on net incomes Of $4,000 and more
Candy and chewing gum would
be taxed IS PEI cent OF the manu-
facturers' sale price.
Increases in excise taxes would
include:
Transportation, five to Is per cent
With 20 per cent Of seats and
berths: lubricating oil, 4 IL cents
10 10 cents a gallon; beer So to So
d barrel; telegramS, from 10 to Is
per cent: local telephone, from 6
TO 10 per cent; still wines not more
than IA per cent alcohol, from eight
to is cents a gallon; still wines
i4-2l per cent alconoi, from 80 to 30
cents q gallon; still wines more than
d per cent, IS cents to 81 a gallon;
sparkling wines, seven to 10 cents a
half pint. 60,
The normal corporation income
tax still would range from Is TO "a
Der cent. The excess profits tax
would be increased is per cent IN
each bracket, ranging from so TO %
per cent instead Of the present 80
to so per cent. The war slirtax rate
would start at 16 per cent and reach
maximum OF 81 per cent, displac-
ing the present surtax Of six or
ers.ass 49,, aaSNf