Evening star., 1942-07-27
1917 Tax Urged
On All Incomes
Free Of levies
New York Trade Board
Plan Would Raise
Additional 5 Billion
BY the Associated Press.

BY the Associated Press.
A representative of the New
York Board of Trade proposed to
the Senate Finance Committee
today that it amend the S6,27l,-
100000 tax bill by removing per-
sonal income tax exemptions so
as to raise an additional $5,000,-
100000 revenue.
Suggesting sales tax as an
alternative, M. l.. Seidman, chair
man of the New York boards
taxation committee, urged the i'm
position of a fiat 10 per cent war
tax on all net income now free of
Federal levies because of personal
exemptions or credits for de-
pendents.
A survey made earlier showed the
committee to be widely divided on
the sales tax.
Calling the House bill, estimated
to increase revenues by more than
$4,000 900 900, totally inadequate"
the witness said the measure ought
to be broadened sufficiently to reach
upward of 100000 persons in
stead of the 100000 he said now
paid Federal income taxes.
Big Burden on Firms.
Mr.. Seidman contended that A
House-approved proposal for the
advance collection of individual in
come taxes by per cent deduc.
tlons at the source on pay checks,
interest and dividends would i'm
pose terrific burden upon busi-
ness already overwhelmed by gov
ernmental requirements" Business
firms would be charged with the
coilectlons from payrolls."
Recommending several changes in
corporation taxes, the witness urged
that combined normal and surtax
lates on corporations be reduced
from the House bills figure of As
per cent to 33 1-3 per cent II the
9o per cent excess profits tax were
retained.
I would rather see 100 per cent
excess profits tax with Is per cent
postwar credit than a 80 per cent
tax with a 10 per cent postwar
credit he declared. The House
MADE no provision for post war re-
bates, but the Treasury has recon-
mended 10 per cent allowance.
Remarking that there appeared
70 be no more revenue of any size
to be obtained from wealthy tax
payers. Mr.. Seidman declared that
more than 60 per cent of all families
including half of the Nations wage
earners. were exempted from indi-
vidual income taxes.
Proposal Explained.
I propose, for the duration" he
said, "a 10 per cent war tax on every
dollar of net income that is exennt
under this bill because of personal
exemptions on credit for depend
ents. This is to be conditioned upon
the present normal tax remaining
at per cent instead of the pro-
posed 6 per cent. I estimate that
the net result would be an addi-
tlonal $4,000, 100000 in revenue. In
the alternative. propose a sales tax
w NNSA'S "SoAo VIC SdIilC amount.
Mr.. Seidman said he was in favor
OF Federal taxation of future issues
OF State and municipal bonds and
believed all past issues ought to be
taxed at least for the duration of
the war.
Instead of the payroll collection
tax, he proposed that individual in
come payments be collected in
monthly installments, beginning
October l, so that the last quarter
OF this years tax would be paid by
December and the collection would
carry forward from there.
Opposes Present Rate.
The witness objected to retention
OF the present capital stock tax and
expressed the opinion that a maxi
mum levy Of Is per cent ought to be
liked on a long-term capital gains.
with a maximum of 80 per cent on
short term gains.
He opposed proposed changes that
would put all taxpayers on a calen-
dar year basis and said provision
ought to be made to permit the
establishment of corporation re-
serves out Of profits, making it de-
ductlble from taxable income.
Income Ceiling Ridiculed.
Mr.. Seidman ridiculed the idea
that any appreciable taxes could be
obtained by fixing personal income
ceiling OF S25,000 a year. President
Roosevelt made such suggestion
to Congress.
If all incomes over SOS, 900 were
completely conflscated instead of
being taxed as proposed in this bill"
Mr.. Seidman said, Il estimate the
(See TAXES, Page A-6.)