Evening star., 1942-07-12
Six Billion Tax Bill Reported,
Income Rate $40, Surtox 7% Up;
Excess Profits Levy Is Set at 81
Excise Charges Rise;
Measure Still Short
Of Treasury Needs
P the Associated Press.

z, the Associated Press.
A ord-breaking $6,250,0
900 wartime tax bill, falling
heavily on both corporations and
individuals, was approved finally
by the House Ways and Means
Committee yesterday.
Product of more than Is weeks of
work. the 325-page measure proposes
to raise 2,485 400, 900 in corporation
taxes and s2959, 100000 in individual
income taxes.
The final draft of the bill provides
In general as follows:
/. ividuals-Increase the
present normal tax rate from
to 6 per cent and the present
surtax graduated scale of per
cent on the first $4,000 of net
income to 13 per cent. Beginning
in January, 5 per cent of each
persons taxable income would be
deducted from paychecks or pay
envelopes, with the accumula-
tions used as a credit against
1943 taxes due in 1914.
2. Corporations - Increase in
the present normal and surtax
from 81 to As per cent and sub
stitution of a fiat 8711a per cent
excess profits tax rate for the
present scale ranging from IS to
go per cent.
8. Excises-Increases in eXcises
on liquor, wine, beer, tobacco,
cigars, train fares, telephone bills,
freight and express shipments,
race track bets.
Far Below Treasury Figure.
Huge as it is, the bill is short of
the Treasury's goal. Secretary Nor
genthau asked the committee to
raise about $S,7OO,O0o,OoO in addi-
tional revenue to swell to $17,000,-
100000 the Federal Governments
prospective receipts this fiscal year.
But the committee chose to go
only part way in that program, and
defeated attempts to write in a S
per cent retail sales tax which ex-
perts estimated would bring in
about $4,000, 100000.
Chairman Doughton said that the
$3.50 100000 yield from the meas
ure-computed by Treasury experts
probably was too low. He made
the personal prediction that the
revenue would be closer to $7,000,-
100000.
THE Treasury was too low last
year by about $1,000, ,ooo,0OO in esti-
mating the revenue from the 1941
BILL" he commented. MY opinion
is that if business continues as it
now appears it will, this bill will
raise s70o0,00o,0oo."
Representative Cooper, Democrat,
Of Tennessee, speaking for Repre-
sentative Doughton, said the COM
mittee had adopted motion as its
last action making all of it's decis-
ions final. But the committee will
meet again early this week to check
the last revision of the measure and
some members said there was a re-
mote possibility that still more
changes might be made.
Representative Cooper added that
It was planned to bring the bill be-
fore the House on Thursday, with
arrangements for at least three days
of debate. The usual custom of for
bidding any amendments except
those agreed on by the committee
probably will prevail. although some
members already have started pro-
testing against what they call this
annual gag rule"
Corporation Rebate Lost.
At stormy session yesterday
morning, the committee abandoned
its program of a "a per cent excess
profits rate with the corporations
entitled to IA per cent refund in
bonds, redeemable after the war
Reversing themselves again, the
committee members boosted the
combined corporation normal ano
surtax from the previous level OF
40 per cent to As per cent. Repre-
sentative Cooper said that these two
actions added about $94,400,000 te
the total of the bill,
Discussing decision to allow mer
In the Army and Navy higher per-
sonal income tax exemptions thar
civilians, members cited two ma jol
reasons for the move. In the first
place, they said, the fighting forces
should be given a special tax ad.
vantage and, in the second, it woulc
be administratively difficult to col.
lect small taxes from soldiers who
possibly, might be scattered all ovel
the world.
The committee reaffirmed a de
cislon to lower a single person.
(See TAXES, Page A-3D