The Waterbury Democrat., 1942-04-22
INFLAMMATION
 MESSAGE COMING
Most Drastic Control of National Economy Being
 Contemplated
By JAMES R. SHEPLEY United Press Staff Correspondent

United Press Staff Correspondent)
 Washington, April 22.-(UP)- President Roosevelt worked today on an anti-inflation message to Congress and to the nation that will recommend the most drastic control of the national economy ever contemplated.
 Near-confiscatory taxes on corp oration earnings, ceilings on indivi- dual incomes and prohibitions against wage increases may be combined with rationing of all consumer products and general price ceil'ngs-even on most com mon food products-to stop the present spiral of imitation.
 Informed Senate sources revealed that the President will tell Congress Monday, and the nation in a fire side chat later, that dangerously rising living costs must be stopped now if any semblance of the Amer !can standard of living is to be pre- served.
 Program in View
 The Presidents program, still subject to revision, was said to in- clude:
 l. A 99 per cent excess profits tax on all corporation earnings over six per cent of capitalization. A 100 per cent rate, 1t was feared, would violate the Constitutions prohibition of confiscation.
 2. A ceiling-$25, 900 and $50,000 are being considered individual incomes, through adjustment of in- come tax rates. The present reg ular and surtax income tax sched- ules would apply to the income the individual would be allowed to re- tain.
 3. A directive to the war labor board prohibiting any further in- creases in the wages of high-brack- eted skilled workers.
 4. A general ceiling over all re- tail and wholesale commodity prices on some 30,000 products.
 5. Rat!oning of all consumer goods. - .....
 6. Vigorous prosecution of the treasury's voluntary war bond sale campaign.
 The message to Congress is ex- pected to outline such program in an informative" manner No part of it, except the tax proposals. would require new legislation.
 Final Decision Not Made
 It was emphasized that final de- cisions on the program have not been made and there still are sev- eral differences among high admin istration officials to be ironed out before next week.
 The major ones are whether Con- gress should be asked at this time to exact such drastic tax measures and whether the program should apply to all individuals and corp orations or only to those engaged in war work.
 Senate sources said MT. Roosevelt got divided reaction from his close advisers recently when he outlined the tax proposals-individual and corporate. Some held Congress would not consent, even as a war measure. to imposition of an in- come ceiling tax on individual ir- comes or conf1scatory corporation taxation at this time. Others en- dorsed the program in its entirety.
 Some of the Presidents advisers also were said to argue that the program would be hardship upon those who are not sharing in the governments war spending pro- gram. But the counter-argument is that if imitation is to be stopped all citizens must be placed under he same rigid regulations.
 The office of price administration summoned representatives of the food industry here today for four day conference on the proposed price-freezing part of the Presi- dents program. That indicated that common food products would be in- cluded in the ceiling order.
 Several bills to regulate war profits, fix wages and allot man. power are pending in Congress. The most recent one was introduced yes- terday by Rep. Andrew J. May, D., Ky, chairman of the House military affairs committe.
 HIS measure, sponsored by the American Legion, would authorize the president to fix all prices, li- cense industry, regulate wages, rents and profits, and draft man. power for war work. Violators to provisions of the bill would be sub ject to a fine of $10O, 1000 and a years Imprisonment.
 Under the proposed legislation whenever the president determines that any maximum price, rent, rate commission, compensation or reward previously proclaimed should be ad- justed either upward or downward he could make that adjustment.
 During the period of the present war" the bill states. "the president is hereby authorized, when in his opinion the successful prosecution of the war renders 1t advisable, to require, under such rules and regu- lations as he may establish, the IA. .