Evening star., 1942-10-09
T axes
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on payrolls and collected from other
taxpayers along with the regular in
come tax
The Senate adopted a committee
amendment retaining the present
$4,000 exemption against the cor
poration excess profits tax instead
Of the House figure of $4,000.
Bonds to Be Assignable.
Under the Senate proposal, COM
panies would pay the 80 per cent
excess profits tax on $4,000 more
of their profits than under the
House bill.
Also approved was a revised COM
mittee amendment altering the
present basis on which corporations
can claim tax exemptions for con-
tributions to employe benefit pen
sion trusts.
At the suggestion of Senator
George the Senate agreed to make
bonds issued in connection with the
proposed postwar rebate of the
excess profits tax assignable after
the war.
The victory tax and other features
Of the program drew the fire, mean
while. of President Philip Murray
of the CIO, who declared in letter
to Vice President Wallace and Sem
ate leaders that the revenue measure
was developing into an outrageous
caricature of the carefully planned
Treasury bill"
Mr.. Murray called for adoption OF
Treasury proposals designed, he said,
to plug "a number Of tax evasion
loopholes through which wealthy in
dividauls and corporations have been
escaping making the fullest contribu-
ton to the war effort"
Senator Taft said he believed that
even if the victory tax won final ap-
proval by Congress it probably would
be converted later into a withhold
ing device to force loans to the Gov
ernment to aid in financing the war
ut would be an easy matter he
told reporters, "to alter the effect
of this proposed tax by merely giving
taxpayers bonds payable after the
war for the amount taken from
them, instead of retaining portion
of the money as direct revenue and
rebating the remainder"
State Bond Levy Loses.
The Senate disposed of one con-
troversial issue yesterday, voting 81
to "a after hours Of wearying de-
bate against taxing the income
from future issues of State and local
bonds. In this decision it overrode
its Finance Committee recon-
lnendationS.
Mr.. Murray, in his letter to the
Senate leaders, declared the country
stands aghast at the callous indif-
ference displayed by many members
of the Senate to the basic needs OF
our wartime tax program"
Your Senate Finance Commit
tee" he said, has warped the ad-
ministration,s tax program-by
heavier taxation of the lower in
comes, by reduction Of exemptions,
by imposition Of gross income tax
(lypocritically denominated a vic
tory tax)-into tax program which
threatens to sabotage and impede
our war production by taking bread
al dmilk from the tables OF lour
workers, and clothing from thei1
backs"
Adoption of the Treasury's pro-
posals for a SIS per cent tax on cor
norate profits, an upward revision OF
income tax rates in the middle and
higher brackets and for sSl upward
revision of estate and gift taxes
among others, he said, would have
constituted "a significant contribu'
ton to our national morale by q
demonstration that war profiteerine
will not be permitted"
Organized labor will continue te
marshal its forces for the most ef-
fective war production, he said. but
It's task will be made more dinicult
sif the Senate persists In Its present
approach to the tax program"