Evening star., 1942-03-29
George Says Tax Bill
May Not Be Ready
Until Early Fall
Leaders Fear Revenues
Will FoII Far Short
OF s.. 900, ,00o. 900 Goal
By the Associated Press.

By the Associated Press.
Congressional leaders con-
ceded yesterday that controversy
over proposed new levies may so
delay final enactment of the new
tax bill that Federal revenues for
the next fiscal year will fall far
short of the $4,000, 100000 in
crease asked by President Roose-
velt in January.
With the House Ways and Means
Committee scheduling hearings up
through the middle of April, Sena-
tor George, Democrat, of Georgia
said 1t was unlikely that the Senate
Finance Committee, which he heads,
could begin consideration Of the
revenue measure until June.
Three months more then might
be required, he said, before the bill
could be passed by the Senate, the
differences Of the two Houses COM
posed and the measure sent to the
President for his signature.
II shall be agreeably surprised"
Senator George told reporters, If
we can get the bill into the Presi-
dents hands before late summer or
early fall"
Delay Called Unavoidable.
Calling this delay unavoidable,
Senator George pointed out that If
the new tax rates did not go into
effect until late August or Septem-
ber. two months of the new fiscal
year would have gone by then with
out any of the increases which the
President said in his January budget
message were necessary in order to
aid In financing the proposed $56,-
000, 100000 war outlay in the year
beginning July /.
While increases made in individ-
ual and corporate income taxes
would be retroactive to cover the
1912 calendar year, Senator George
said the delay in enactment OF the
bill would cost the Treasury a large
amount of potential revenue in ex-
else levies, inheritance, estate and
gift taxes, proposed levies on munich
pal and State bonds and other forms
Of imposts which are not retroactive.
The chairman pointed out also
that II Congress chose to substitute
a sales tax or some other form Of
new levy for some of the income
rate increases previously suggested
by the Treasury. the delay in get
ting the new bill on the statute
books would be even more costly
because the new tax could not be
made retroactive.
Late Security Tax Action Seen.
In addition, Senator George said
there were indications that action
on the Presidents suggestion for a
$1,000 100000 increase in Social
Security taxes could not be taken
until late in this calendar year.
The President had asked for ST.
0O0, 1000, 900 additional in general
taxes and the Treasury had pro-
posed to obtain the major share Of
this sum out Of increased levies on
the incomes Of individuals and
corporations.
Considerable sentiment has been
recorded In Congress for q move
to replace some Of these increases
with a sales tax. but Senator La
Toilette, Progressive, of Wiconsin,
served notice that such action was
sure to provoke a prolonged contro-
versy.
Senator LaFollette. q member Of
the Senate Finance Committee who
has consistently opposed sales taxes,
told reporters he was prepared to
show that a S per cent tax that
exempted sales of food. articles on
which present excise levies are paid
and Government transactions, would
raise only 1854 900 900 a year. Some
proponents have claimed potential
revenues upwards of $4,000, 900 900
for a per cent tax with no ex-
emptions.