Evening star., 1942-10-05
George Predicts Cut
In Living Standard
|by Further Taxes
Sees Change When Rates
Exceed Those in Bill
Going to Senate Today
By the Associated Press.

By the Associated Press.
Back-straining taxation that
will force a downward revision
in the standard Of living soon
was forecast by Senator George.
Democrat, Of Georgia today as
the Senate prepared to receive
a new revenue bill calculated to
extract more than $26, ,000, 100000
yearly from citizens.
Senator George, as chairman Of
the Finance Committee, was charged
with reporting to the Senate a
measure containing rates he said
were approaching the maximum
that could be assessed against in
dividuals and corporations without
hampering war production.
AT the same time he told re-
porters that taxation to enforce
loans to the Government to aid in
financing the war must be enacted
by Congress in the near future,
adding:
Every 1 per cent addition that
is made to these proposed tax rates
for compulsory savings or loans to
the Government is going to push
the standard of living down that
much. 1t can't be escaped. Our
living standards will have to change
when we 60 beyond the rates in this
bill"
Burden Approaching Maximum.
Departing from Treasury figures,
Senator George estimated that the
pending measure would add $9,672,-
100000 to the $4,000, 100000 an
nually taken from taxpayers under
present laws. OF this amount, he
said 100000 would be COL
lected and later rebated to tax
payers after the war, leaving ST.
900,000000 in direct new taxes.
AS approved by the committee, the
bill would provide for an aggregate
rate of "a per cent on the taxable
income Of individuals in the lowest
brackets, graduated upward to the
point where an 81 per cent surtax
would be assessed aaginst those
with larger incomes. Some corpo-
rations would pay up to 80 per cent
Of their net taxable income.
II think the rates in this bill,
both on individual and corporation
income, run very close to the maxi
mum direct tax burden that the
country can bear" Senator George
said. "The overall burden ap-
proaches the maximum the tax
payers can pay and maintain full
production.
"I wouldn't want it understood
that some taxpayers can not bear
more, but the average is extremely
high. I don't think, however, that
we will seriously sGect the standard
Of living with this bill, but that is
coming soon.
Some form of compulsory savings
must be instituted and the standard
OF living necessarily is going to be
affected when that is DONE"
Debate to Begin Tomorrow.
Senator George said he thought
there was a great deal Of difference
in extracting money from a citizen
as direct tax and as a loan, since the
citizens equity position would be
strengthened by the amount OF
money he was forced to place in
savings with the Government fol
postwar rebate.
Because of that fact, he said, he
was not so fearful of the ultimate
effect Of tax-rate advances for en-.
forced loans as for the collection Of
revenue that would not be returned
after the war.
While the Senate was to receive
the new bill today, it did not expec'
. to begin debate on the measure unit
tomorrow.
Senator Danaher, Republican, O
Connecticut, yesterday denounced
the proposed per cent levy on gros.
a, income contained in the tax bill
asserting it would entirely disre
gard the individuals capacity to pay
Gross Levy Called Unfair.
: Senator Danaher, discussing will
neWspapermen the victory tax
provision of the bill, which was on
OF the Senate committees addition
to the House measure, contende,
. that after educating a generation
, OF the American people to the prin
clple OF a tax on net incomes i
would be unfair to add a gross in
come tax in time of war.
Agreeing that some form of com
pulsory savings will have to be in
stituted, the Connecticut Senate
: said he would offer a stamp pla,
1 to joint House-Senate committe
= studying fiscal problems. For ever
l dollars worth of consumers good
2 purchased the buyer would have t
: purchase a dimes worth of specis
: savings stamps, which could b
converted into -interest-bearin
: bonds, payable after the war.
E Whether sales tax amendmer
= would be offered on the floor an
t peared doubtful. The House ha
e rejected such levy and the Treas
llrV reNao toH1v hos ah h{ao<oa - a.