Evening star., 1942-10-06
'43 Taxes Seen
Costing Nation
3633 Billions
George AnoIyzes
Levies as Senote
Gets Huge New Bill
BY the Associated Press.

By the Associated Press.
Chairman George Of the
Finance Committee told the
Senate today the American peo-
pie would pay taxes totaling $685.
537, 100000, or one-third of the
national income, during the
coming year under pending leg
iSlation.
Senator George took the floor to
explain the gigantic new revenue bill
after a proposal by Secretary of the
Treasury Morgenthau for 5000, ,0OO.-
600 In new levies, over and above
those in the pending measure. had
aroused demands for sales tax.
Previously the Finance Committee
had laid before the Senate it's formal
report on the bill, in which it criti-
clzed House-approved rates on cor
poration profits and defended its
action in reducing potential taxation
on business as desirable to encour-
age efncient corporation manages
ment in wartime.
Income and Levies Estimated.
Senator Georges estimate on over
all taxation included SIG, 1897, ,000, 900
in Federal levies and $4,000. .00o, 900
IN State and local imposts. He esti-
mated national income at $1lOOOO,-
900 900.
Since March the House Ways
and Means Committee, the House 1t.
self, then the Senate Finance Com
mittee have been working on the
tax legislation.
Opening debate on the latest ver-
sion of the measure, Senator George
attributed the length of time con-
sumed in its preparation ito a sin
cere effort to prevent the drastic in.
creases from causing severe inequi-
ties and unduly interfering with our
economy"
I'm framing our tax bill" he said.
I'VE had to exercise considerable care
In not imposing such severe rate
on corporations as to disrupt the ma
tional economy of our country"
Estimating that $22. .054 900 900 will
be collected from corporate and in
dividual income and excess profits
taxes, he said $10,790, 100000 would
| come from corporations and $ll,-
264, 300, 900 from individuals.
Tax Exceeds Britain's.
I'm deciding that the total normal
and surtax corporation rate should
not exceed 40 per cent, we gave care
full consideration to the effect Of
such rate upon our economy and
also considered the effect of the rates
levied by other countries" Senator
George said.
In some instances, at least. the tax
rate is higher than that of Great
Britain. the Senator's figures showed.
IF we look at the first bracket
of individual income tax rates under
this BILL" he said, I'VE will find
that the total normal and surtax
rate amounts to 10 per cent. In
addition, the per cent victory tax
raises this total to "a per cent. II
we add to this the 40 per cent inn
posed uon corporations (assuming
that the tax will be passed on to
the consumer), we will have total
rate of 64 per cent on individual
incomes, as compared with the Brit
ish rate of so per cent. Moreover.
in Great Britain, no state or local
taxes are imposed"
Senator George said the commits
tee gave careful consideration to
the recommendations of Chairman
Donald Nelson of the War Produc-
ton Board in fixing the excess
profits rate at 80 per cent with a
10 per cent postwar refund. given
in non-negotiable. Interest
bearing bonds payable after the war.
Postwar Credit Explained.
He gave four main reasons for
the postwar credit:
81 With a high corporate tax it
will give the taxpayer an imme-
diate incentive to make the cor.
poration more efficient in its op-
Grafton and keep its costs down to
a reasonable basis.
80. 1t will allow more immediate
revenue to the Government than
could otherwise be secured under
high rates.
"3. 1t will provide the corporation
with postwar reserve to enable it
to undertake the task of rehabilita-
(See TAXES, Page A-6)
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