Evening star., 1942-10-13
Sales Levy Only Way
To Increase Taxes,
Senator George Says
Joint Committee Storts
Work on Composing
Differences in Bills
BY the Associated Press.

1s tJlS ASsoCldteu TIcss.
Chairman George of the Sen
ate Finance Committee declared
today that if the Treasury wants
to boost taxes above the levels
established by the revenue bill
now nearing congressional en-
actment, it must be prepared to
accept a retail sales tax.
Senator George, chairman of the
joint conference committee which
begins efforts today to compose
Senate and House differences in
the record breaking measure, told
reporters there was no longer any
question in his mind as to the form
new taxation would have to take.
If the Treasury asks us to pile
more taxes on the terrific burden
contained in this bill" he said, then
the only answer Is the sales tax"
The pending measure would boost
annual Treasury collections to
somewhere between the 24,OOO, ,OOO,-
900 estimated by Secretary of the
Treasury Morgenthau and the $26,-
900, 100000 estimated by Senator
George. Mr.. Morgenthau said re-
Gently he would ask for $5 O00, ,000,-
900 more revenue as soon as this
bill became law.
Will Insist on Definite Program.
Senator George made it plain that
if any such request is formally sent
to Congress he will insist on the
Treasury's outlining a definite pro-
gram combining compulsory saw
ings with taxation. The pending
bill was amended by the Senate to
direct joint congressional study
OF compulsory savings plans, with a
report due by December l.
When this study is completed
Senator George declared a program
ought to be enacted with the under
standing that it's main features
would be retained for the duration
of the war. He said the only subse-
| quent changes should be those tc
correct inequities and to adjust
onerous rates.
Il hope the American people car
be told by January or February what
is going to be expected from them
for the duration of the war in COM
pulsory savings and in direct taxes,
the committee chairman said, add.
ing he believed the high rates of thu
bill now in conference approached
the maximum direct taxation tn,
country could bear.
His assertion that sales tax mus
follow any request for additlona
revenue evoked surprise in som'
quarters, since Senator George ia
thered the per cent victory levy OF
all earnings over 1924 which thu
Senate wrote into the new tax bill
Senate adoption OF this tax thwart
ed efforts to insert sales levy il
the measure.
Victory Tax Acceptance Forecast.
House acceptance of the victor,
tax was forecast in informed quar-
ters and one member of the Hous
conference group, who asked tina
. his name not be used, said he iooke'
for speedy acquiescence in most o
, the major changes made by the Sen
ate.
. These included action cuttin.
back the proposed As per cent com
! bined rate on corporation norma
and surtax earnings to 40 per cen
, and the addition Of post-wa
credit of 10 per cent of the exces
profits tax.
There was some indication tn
House group might insist on reviva
Of the capital stock tax, which tn
Senate voted to kill, and contro
versy was expected over Senat
action eliminating a proposed 5 pc
cent tax on express and freigh
I shipments and per cent lev
on pari-mutuel betting.
Meanwhile. Mr.. Morgenthau in
: dicated yesterday that he plans t
finance the war, insofar as possible
with to 10 year bonds bearin
2 per cent interest and that h