Evening star., 1942-08-30
Senator'S Considering
Emergency Tax 10
Reach All Farmers
Bockers Soy War Levy
Would Top New Field
Totuling So Billion
2, TIE Associated Press,

2! the Associated Press.
An emergency war tax de-
signed to reach practically ev-
cry individual who makes an in
come, no matter how small, was
reported under consideration
last night by Treasury and Con-
gressional officials.
Details of the plan were not ready
for publication, but there were re-
ports that the Senate Finance Com
mittee would be asked this week to
increase by at least 81 500, ,000,000 the
s8,137 ,000, 900 which would be taken
from individuals in taxes under
terms Of the new revenue bill already
approved by the House.
Conjecture centered around form
of Gross income tax, possibly levied
at the source, which would tap a
field of 5000 ,o00,0 in annual In
come which some committee mem
bers contend would not be reached
by the bill as it stands.
Savings Feature Hinted.
There was some indication also
that a system of postwar savings
for individuals through bond pur-
chases might be combined with the
proposed new levy.
The breadth of the field in which
additional individual taxes could be
imposed was indicated by estimates
that only $1,000, 900 of $4,000 900 per-
sons who receive income annually
would be subject to regular levies
under the House approved bill.
The Treasury was understood to
have suggested a somewhat similar
gross income tax on corporations to
replace the capital stock and de-
clared value excess profits levies
which the Senate Committee voted
out of the bill Friday for an esti-
mated revenue loss of s75, 100000.
AS outlined previously by Chair
man George, this would embody the
assessment of small percentage
tax against the gross receipts OF a
business, after certain specified de-
ductions for labor and materials
costs.
Sales Tax an Alternative.
Several committee members said
1t appeared obvious to them that
unless the treasury proposed some
alternative, there was going to be
an almost overwhelming demand
for enactment of sales tax.
Senators Byrd, Democrat, OF Vir-
ginia; vandenberg. Republican, of
Michigan, and Taft, Republican, of
Ohio said they regarded sales tax
as inevitable If the full $8,700, ,000. 600
increase in annual revenues sought
by the treasury was to be attained.
Senator Brown, Democrat, OF Michi-
gan said that "unquestionably'
situation was arising where the
committee would have to accept
sales tax or find some other new
means of raising money If 1t was
not to fall short of the treasury's
demands.
This situation has been made
more acrte by Treasury proposal
to cut approximately $500 ,000. 900 of
the potential yield from corporation
taxes by altering rates and proyid-
ing new relief measures. The
Treasury suggested that normal and
surtax levies on corporations be
raised from the IS per cent in the
House bill to SIS per cent and that
the 90 per cent excess profits tax be
retained. But it offered to limit the
tax any corporation would have to
pay to 80 per cent of its net income.
Credit Provision Advanced.
The Treasury proposal included
provision for credit of II per cent
of the tax paid by corporation,
which it could use under certain
restrictions to reduce its debts or
could put into bonds for postwar
rebates.
Most committee members were
favorably impressed by the postwar
rebate proposal and liked the 30
per cent overall tax limit. Several,
however, including Senators DAN
aher, Republican, of Connecticut;
Vandenberg and Taft, expressed op-
position to the SIS per cent rate on
normal and surtax income, an op-
position Senator George indicated
he shared