Evening star., 1942-07-11
Income Surfax Boost
OF | PET. Approved
By House Committee
Plan Almost Doubles
Present Rates; TotoI
Now Above 6 Billion
q, the Associated Press.

q, the Associated Press.
An 11th-hour decision to boost
the average individuals income
taxes another ! per cent, there
by nearly doubling the present
rates, put the yield Of the House
Ways and Means Committees
new revenue bill above $6,000,-
100000 today.
Members worked to finish writing
the bill before nightfall. 1t has
been the subject of weeks of hear
ings and, when completed, will be
headed for more weeks of congress
sional debate.
At an unusual night session last
night, the committee adopted mo-
ton to add l per cent to the new
surtax graduated scale of from II
per cent on the first $4,000 of per-
sonal net income to 81 per cent
above $5,O00,000. Present rates are
from to II per cent.
Thus, with a 6 per cent normal
tax, compared with the present 4,
the committees new combined rate
would be increased from 10 per cent
to 10 per cent in the lowest bracket.
Picks Up $310,o0o,ooo.
BY its action, the committee
picked up s3lo,oo0,oOo in additional
revenue. But that addition was Off
set to the extent of $85 100000 by
another vote to retain the personal
exemptions in the present law for
military and naval personnel. The
committee previously had decided
to lower the single persons exemp-
tion from $3.50 to $500 and for mar
ried couples from $1,000 to 81 200.
Thursday the committee elimi-
mated a $102, ,800, 900 item to be OBJ
tanned from increased postal rates
on second and third class mail.
Considering all revisions since the
committee began reviewing a final
COPY of its bill last Tuesday, the
estimated yield today stood at S.
o46 zoo, 900.
But that total included $876, ,700,-
900 in postwar refunds to corpora
tions, which, If deducted, would
leave a net revenue effect of only
$3.50 100000. The Treasury had
asked the committee to raise So
100000 900.
It was reported that Represent
ative Treadway, Republican, OF
Massachusetts had made the motion
to increase the individual surtax
rates and coupled with 1t a pro-
posal to change the single persons S
income tax exemption from $500 to
$500. One member demanded that
the two questions be separated and
Mr.. Treadway finally withdrew the
latter suggestion.
Freight Levy Retained.
The committee decided to leave In
the bill a S per cent levy on freight
and express charges, despite opposi-
ton from Price Administrator Hen
derson and the Treasury.
Mr.. Henderson, with Treasury
support, had objected that such a
tax would increase pressure for an
upward boost In price ceilings. 1t Is
estimated to produce 1892 ,000,0
The committee members agreed,
however, that coal should be ex-
empted from the percentage tax and
a fiat levy of cents ton should be
imposed.
The members rejected during the
day an attempt by Representative
Boehne, Democrat, of Indiana to
put into the bill q provision estab-
fishing a tax penalty for married
persons who decided not to file joint
individual income tax returns. The
vote was reported to have been II
to II.
The committee several weeks ago
adopted provision requiring man
datory joint returns. l3 to 10, then
reversed itself and discarded that
plan by vote of 16 to 8.