Evening star., 1942-08-04
uxes
Continued From First Page.)

pearance before the committee yes
terday.
Senator Brown said there had
been some discussion Of permitting
corporations, particularly railroads,
to set up a reserve Of per cent Of
their gross revenues to be used after
the war to replace, repair and ex-
pand equipment which deteriorated
under the stress of wartime maxi
mum use. ..-
Senator Guffey, Democrat, OF
Pennsylvania said he had received
favorable comment on such q pro-
posal and indicated something of
the nature might be advanced when
the committee considers his proposal
to increase to 100 per cent the
House-approved 80 per cent tax on
excess corporation profits, with \
20 per cent rebate after the war.
Asks Opinion.
Senator GufIey said he had asked
Treasury officials to furnish the
committee with an opinion on his
proposed amendment The Treas
ury has suggested that the 90 per
cent tax be retained, with q 10 per
cent postwar rebate.
The committee heard proposals
yesterday from Laurence A. Tanner,
rAsorAennfi~r <hn ros>, -, nro> a~A T~
dustry Association of New York City,
and others for the imposition of a
retail sales tax. but Mrs. S. H. Gil
man Of Irvington, N. j.. speaking
for the New Jersey Consumers
Council. contended that such a levy
would have "pernicious" effect on
persons in low income brackets.
Brazil Agent Testifies.
c. w. Nave of Rio de Janeiro,
speaking for the American Chamber
of Commerce for Brazil, said that
since 1926 there had been "a very
satisfying" increase in the number
Of intelligent young Americans who
had entered trade in Latin American
countries.
He said that Americans abroad
paid many taxes from which they
necessarily get little benefits, being
forced to maintain their own
schools, hospitals and other facili-
ties.
If the United States really de-
sires to encourage better relations
with Latin American countries it
can hardly accomplish that aim by
burdening American citizens there
employed, with a tax which the
nationals of other countries need
not pay" Mr.. Nave declared.
Debt Provision Asked.
w. P. Hobby, former Governor OF
Texas. urged that provision be made
for business firms without war con-
tracts to take tax deductions to
pay their debts.
| The gray-haired publisher of the
Houston Post, who Is the husband
of Mrs. Oveta Culp Hobby, director
of the Women's Army Auxiliary
! Corps, declared that many bust
nesses were going to be forced to
the wall If they did not obtain
some sort of debt relief.
He suggested that a yearly credit
not to exceed per cent of the total
outstanding on debts incurred be.
fore January l, 1910, be permitted
against the portion Of income sub.
ject to surtaxes and excess profit.
levies
Replying to questions by Senator
Connally, Democrat, Of Texas, Mr.
Hobby estimated that newspaper!
had suffered q 20 per cent loss II
advertising revenue because Of pri,
critics and the contraction Of civil
ian business enterprise.
Senator Taft, Republican. of Ohit
suggested that the debt credit ough
to be based on a percentage Of tn,
tax due. rather than on the deb
owed. Mr.. Hobby agreed this chang
might be wise.
Senator Byrd. Democrat, Of Vir
ginia, suggested that the formul,
might be expanded to include fu
ture debts contracted for necessar,
plant expansions.