Evening star., 1942-03-18
Tax on Advertising
Proposed al House
Revenue Hearinq
Southoff Also Urges
$4,000 Limit on All
SoIories Paid in u.s..
y the Associated Press.


Representative Sauthoff, Pro-
gressive. of Wisconsin. proposed
today that a SIS, 900 top be placed
on all salaries and that the Gov
eminent tax newspaper and ra-
dio advertising.
After quoting Representative
Boehne. Democrat, of Indiana as
saying that second class mail matter
had received an average annual sub
sidy of 800, 900 900 Mr.. sauthon told
the House Ways and Means Com
mittee:
AN inspection of any of the met
tropolitan dailies will show you that
one-third to one-half of the con-
tents of such paper is devoted to
commercial advertising, which pays
q large revenue Because these news
papers enjoy a 500, 900 .00O-a-year
subsidy from the Government,
which, of course, the average citizen
must pay, and because commercial
advertising is matter of profit,
pure and simple, and not educa-
tional, therefore, I feel that we
could recover SOC. 900 900 a year now
granted to the newspapers as sub
sidy by placing a tax on these COM
mercial advertisements.
Pay for Special Privilege.
Il recommend this solely on the
basis that this printed matter is
getting special privilege from the
Government.
Another source OF advertising
which obtains a special privilege
from the Government is that OF
radio advertisement. Here, too, the
Government should step in and
exact fee for this form Of advertis-
ing. AS to the amount of fee, leave
that to the good judgment of your
committee"
No man, he said, should receive
more salary than the President OF
the United States and recommended
that AL salaries. commissions
bonuses, ETC.. In excess Of $4,000 be
devoted to the war effort"
Mr.. Sautho1 opposed a sales tax
because, he said, it places q heavy
burden on those least able to pay"
A plan for a maximum corpo-
rate excess profits tax rate Of IS
per cent combined with an addi-
tional 20 per cent compulsory bor-
rowing program was presented tc
the committee earlier by Clinton
Davidson, Jersey City representative
OF fiduciary counsel.
Compulsory Bond Buying.
He recommended that during the
war corporations be required to buy
non negotiable, noninterest bearing
United States bonds to the extent
of 20 per cent of income subject
to excess profits tax.
These funds would be used after
the war to promote Unemployment
by having the bonds become auto
matically negotiable and interest
bearing when peace is declared" he
said.
He said they would avoid the
necessity OF raising cash Wnen peace
returns when the Federal debt will
be between s15o, 900 900 900 and $780,
900 900 ,00o."
DR.. Albert G. Hart, Ames, Iowa
economist, told the committee that
4 a sales tax would not raise as much
revenue as the Governments fiscal
situation required-And added that
81 600, 900 900 in new revenue should
be obtained quickly.
Representative Crowther, Repub-
ncan, of New York told DR.. Hart:
TT looks to me Like we're going
to have . sales tax. The growing
popularity for the sales tax seems
to arise from q fear that the Treas
ury might revert to its Is pei cent
Withholding tax proposed last falD ~
DR.. Hart said that heavier income
taxes were much preferable to- sales
taxes both in combating imitation
and in raising revenue.