Evening star., 1942-10-18
Conferees Adopt
Tax Bill; Vote
This Week Seen
Compromise Version
Boosts Levies Set
By Both Houses
BY the Associated Press.

senate ana House COnfereeS
adopted a compromise version of
the record-breaking tax bill yes
terday which the Treasury esti-
mated would increase annual
Federal revenues by Sc, ,881 $50 900
and which congressional leaders
expected would be speedily ac-
cepted by both chambers this
week and sent to the President.
The total amount of taxes called
for by the bill in its final form
represented an increase over both
the Senate and House versions
$65 SOC, 900 in comparison with the
Senate bill and $685., 300, 900 above
the House bill, by Treasury compu-
tation.
The conferees in five days reached
agreement on 504 amendments and
killed proposal to establish joint
congressional committee to study the
question Of imposing compulsory
savings plan on citizens.
New Tax Bill to Follow.
Representative Cooper, Democrat
Of Tennessee, explained that House
members felt the proposed study
would interfere with the work of the
Ways and Means Committee in con-
sidering a new 5000 OO0, 900 tax bill
which Secretary of the Treasury
Morgenthau said would be submitted
to Congress Immediately after the
present measure becomes law.
Previously the conferees had ac-
cepted most OF the major provi-
sions of the bill as the Senate
passed it, including per cent
victory tax on individual income
above $12 week and a combined
rate Of 40 per cent on normal and
surtax earnings of corporations.
Chairman George of the Senate
Finance Committee pronounced
the COL page measure IAN excellent
tax bill, taken as whole" but
Chairman Doughton of the House
Ways and Means Committee was
less enthusiastic, commenting:
Its all right. It was as good as
we could do"
Higher Yield Seen.
Senator George said the commit
tee was standing on its estimates
that the measure would raise ap-
proximately $1,000 100000 in direct
new revenue, with an additional
81 ,750, COO 600 to be collected from
individual and corporate taxpayers
and later returned to them In the
form Of current debt credits or post
war rebates.
This huge new total would be
piled on top of approximately ST..
600 ,000, 900 now collected yearly. In
dividuals would contribute about
SIC, 900 ,000,000 and corporation:
about $4,000. .000, 900 of the $25,0O0,-
600 900 expected to be raised. The
SIC, 900 900 900 individuals would pay
would be income and victory taxes
while the 100000 900 corporation.
would pay would include corpora
tion income and excess profits taxes
The 5000 ,OO0, 900 balance of the
$25, ,OO0, 600, 900 would come from
excise levies and miscellaneous
taxes.
In final day action, the con.
ferees adopted a Senate provision
granting postwar rebates to corpor-
ations of 10 per cent of the amount
of excess profits tax they pay, link
ing this with an overall limitation
on taxation at the point where II
reaches 80 per cent Of a company's
net income.
Limitation Explained.
The 80 per cent limitation, COM
mittee members said, would affect
only corporations with earning:
high enough to carry them into the
bracket of 50 per cent taxation or
excess profits. If their combined
normal, surtax and excess profit!