Evening star., 1942-10-07
Tax Bill PeriIs
Living Standard,
.LaFo||etteSays
Offers Rider Shifting
War Cost Burden to
Big Corporations
BY the Associated Press.

BY the Associated Press.
Senator La Toilette, Progress
sive, Of Wisconsin protested to-
day that the revenue bill now be-
fore the Senate places an un-
fair and dangerous share of the
increased tax burden upon lower
income groups"
In minority report submitted
as the Senate began its second day
Of debate on the record-breaking
measure, Senator La Toilette urged
adoption of amendments which he
said would jack up corporation
taxes and close loopholes of the
present law to obtain an additional
81 ,269 ,000000 over the $7,8O0,000.000
in new revenues sponsors say the
bill will raise.
Sees Living Standards Hit.
Senator La Toilette charged that
the measure, as approved by the
Senate Finance Committee, COM
mits double offense against sound
national policy in the present emer-
gency."
He said that, in the first place,
the bill failed to raise "a reason
able maximum of revenue which is
available without undue sacrifice"
failed to plug loopholes of the pres
ent law and failed to tax large in
comes and inheritances heavily
enough.
In the second place, he said the
high individual income tax rates in
the lower brackets threatened to en-
croach on subsistence standards of
living, lin effect taking bread out
Of peoples mouths
Senator La Toilette proposed to
raise an additional s219.0OOOO an
nually by increasing surtaxes on cor
porations with yearly income Of
$25, 900 or more, so that they would
| pay combined normal and surtax
rate of so per cent.
Other increases he proposed in
cluded
/ Compulsory joint individual in
come tax returns, 00,000,00O; tax
alton of income from existing and
future issues of State and local
securities, s225,O0O.O0O; elimination
OF percentage depletion now allowed
mines and oil wells, sl24 ,OOO, 900; in
creased individual income surtax
rates, $208 100000, and increased es-
tate and gift taxes, $193 900. 900.
With the normal corporation rate
unchanged at "a per cent the House
proposed 81 per cent surtax on net
incomes about $4,000, or a total of
As per cent. The Senate Finance
Committee reduced the surtax rate
to l6 per cent, for a total of 40 per
cent.
Asks 26 Per Cent Surtax.
Under his amendment, Senator La
Toilette said, the surtax would be
rs per cent on net incomes more
than $2500O.
To ease the effect of that change
on small corporations. Senator La
toilette said he would propose a
$4,000 exemption for excess profits
TAX purposes, as contained in the
House bill, which the Senate COM
mittee reduced to $4,000.
This would relieve some 5000
small corporations from having to
P"J e'AiS ChCCSo pl OlltS taxes ana tfleV
therefore could stand the hike in
the surtax." he explained.
Chairman George of the Finance
committee was expected to oppose
the so per cent combined rate. since
he reported to the Senate the COM
mlttee considered even the As per
cent in the House bill too high and
believed it would result in severe
hardship on many corporations
crippled by priorities and other ef-
fects Of our war economy
The Senate operated in high gear
yesterday in approving -contro-
verslal committee amendments to the
Dill. Within slightly more than four
hours after Senator George began
his opening statement the Senators
had run through all SIT pages Of
the measure, reserving decisions
only on disputed paragraphs.
Senator George was 50 en-
couraged by the showing that he
predicted final vote could he
reached this week, sending the bill
(see TAXES, Page A-20J