Evening star., 1943-12-17
Senate Leaders Defer
Vote on New Tax Bill
Until After HOLIDAYS
~ the Associated Press.

~ bne AsSOCldted fTeSS.
Senate leaders virtually posted
a don't-opent-until-aft the
new year label today on the new
$2,284 900, 900 tax bill.
The hasty final blessing given the
measure by the Senate Finance
Committee yesterday apparently
came too late to permit it's enact
ment by Christmas. Majority Lead
er Barkley expects a congressional
recess from the middle of next week
until about January Is, precluding
early action on the bill.
Chairman George of the Finance
Committee said legislative drafts
men could not possibly whip the
measure and its accompanying re-
port into final shape before Monday
or Tuesday. The Georgian indicat-
ed he would agree to postpopement
If special legislation could be worked
out to cover an anticipated freeze
In the social security tax rate.
Would Freeze Security Tax.
On the insistence of Senator VAN
denberg, Republican, of Michigan
the committee wrote in a provi-
sion delaying throughout 1914 a pro-
jected automatic increase in social
security taxes. Unless the Vanden-
berg proviso is adopted in the tax
bill or in other legislation, social
security tax rates, now l per cent
each on employers and employees,
will rise to 2 per cent January l.
Senator Vandenberg has tied
60-day rate-freeze to another
House-approved bill, now pending in
the Senate.
The Finance Committees tax bill
reports to such diverse sources. most
of them in the House version, as
women's handbags, movie tickets
and corporate excess profits levies
to bring in an estimated $2264,-
100000 above current Treasury re-
ceipts of approximately SAL 300, ,0O0.-
600 annually. The Senate bill is
sl44 900, 900 larger than the Houses
81. 140 10000 tax measure.
Excise taxes account for approx
mately a billion dollars of the pro-
posed new revenue, but individuals
will have to carry an extra burden
Of more than $500, 900, 900, with cor
poration taxes and higher postal
rates making up the balance.
Earned Credit Eliminated.
The principal change for individ-
ual income taxpayers is elimination
Of the earned income credit which
softened the impact of the normal
tax rate in past years.
The Senate committee, however,
rejected an elaborate House plan
for integrating the Victory tax with
the ordinary income tax. Under
the Senate plan, the Victory levy,
currently per cent with offset
credits for dependents, becomes a
straight 3 per cent tax on all income
over 1924 a year (s12 a week..
The excess profits tax rate on cor
porations goes up from 80 to 95 per
cent. but both the House and the
Senate committee retained the pres
ent combined normal and surtax
rate of 40 per cent, and the overall
80 per cent ceiling for corporate
normal, surtax and excess profits
taxes.
The tax on whisky goes from Sc
a gallon to SO. The beer tax goes up
from 81 a barrel to So, and wine ex-
cises are boosted so to 100 per cent. I.
Caught by heavily increased ex-
else rates were theater admittances,
cabaret checks, telephone and tele-
graph service, jewelry, furs, luggage,
rail and bus tickets, cosmetics and |
club dues, among other items.
Airmail postage will cost cents
instead OF s, under the proposed |