Evening star., 1942-07-30

ering the program to add $6,27l ,000,-
900 to the Nations revenues.
Senator Brown told reporters he
believed some such compromise may
provide a workable way Of putting
into effect President Roosevelt's sug-
gestion to limit net incomes of all
persons to s25 900 year, after pay
ment of taxes.
A half dozen representatives OF
the CIO unions, led by Nathan E.
CoWan, told the committee yester-
day that the workers of the Nation
were looking to Congress to carry
out the Presidents proposal, which
was not acted on by the House
when it approved the present pro-
gram.
Expressing approval of the limita-
ton principle, Senator Brown said
he had been studying the possibility
Of attaining it through the institu-
ton of postwar rebate provision
such as the Treasury has recon-
mended for corporation excess
profits taxes.
Need for Adjustments.
Under terms of such an amend
ment, Senator Brown said, the
Treasury might take the surplus
above $25,000 left to any individual
after payment of his taxes in levy
for bonds that would be repayable
after the war for capital expendi-
lures or for outlays that would pro-
duce peacetime employment.
He said it was obvious. however,
that certain adjustments would
have to be permitted to allow such
individuals to meet their obligations
and to continue current operations
that provided employment for
others.
The committee heard a suggestion
Yesterday from Roy Little of Provi-
dence, R. T.. president of the At
lantic Rayon Corp, that it boost
individual income taxes so that he
and others like him would have to
pay double the $1,000 which he said
would be due next year on his 1912
$4,000 net taxable income.
The witness said the $1,000 was
too damn little" tax for him to
pay, and expressed the opinion that
the Treasury could get an additional
$l.000,000 from persons in his in
come class if rates were doubled.
Mr.. Little complained that a
House-approved provision to force
all companies to pay taxes on a
calendar instead of fiscal year basis
would work extreme hardships on
companies which had borrowed
heavily to build production ia
cilities and now were faced with
taxation under new and higher
schedule, retroactive as of last
January l.
In this connection, Howard Kel-
logg, president of Spencer KELLOGG
& Sons, Inc, Buffalo, N. Y, said his
company would be put in the posi-
ton Of having paid out $4,000 more
than was available for dividends If
the taxes IN the new bill were made
retroactive on it.
Failure of House Bill Charged.
Mr.. Kellogg explained that since
his company did business on the
basis of fiscal year ending in
August it had figured its taxes
under the 194l rates and had made
its dividend payments. If it had
to pay the new rates for all of the
months from January through
August he said, its dividend paw
ment would then be considered
$4,000 too high.
Mr.. Cowan, representing the CIO,
said the House-approved bill had
failed miserably" to carry out the
tax recommended tions made bv
President Roosevelt in his seven
point program to control the cost
OF living. He said that instead of
raising only s6,27l 900 900, the bill
should raise $4,000, ,00O, 900 addi-
tlonal revenue or at least the So
7oo.00o,o0o recommended by the
Treasury.