Evening star., 1943-05-14
uxes
Continued From First Page.)

could not guess the outcome because
of an apparent growth of opposition
against any tax abatement. Previ-
ously they had counted on most Of
the opponents Of the committee bill
supporting the George proposal as a
compromise
One of these latter. Senator La
Toilette, Progressive, of Wise y1sin
said he would not vote for the
George plan because he did not be-
lieve in using fat percentage
method of canceling back taxes.
Talking in Circles"
Senator George told the Senate
yesterday the time had passed when
Congress could think of putting tax
payers on a pay-aS-you-go basis
without canceling some of their back
taxes. 1t is talking in circles he
added to say that the Government
is going to lose any revenue when it
has the power to raise taxes at any
time.
Senator Vandenberg, Republican.
of Michigan, said:
Il am not interested in any COM
| promise. We either adopt the COM
mittee bill or we don't. If we go
down. We'll go down fighting for the
principle of 100 per cent forgiveness
and equal treatment to all taxpay-
ers.''
| Senator Vandenberg estimated the
committee bill would cancel a net
of about IS per cent of a years taxes
because of the recoupment provided
in its "windfall' provisions.
The committee measure was at
tackled by Senator Byrd, Democrat,
of Virginia, who told his colleagues
| that while he favored current coll
lection of taxes he opposed abating
full years liabilities, asserting this
would result in "a very substantial
loss to the Treasury.
BY some method of financial Jug
Cling, the taxpayers would be for
given $500 100000, but supporters
of the bill which would 90 that
claim that the Treasury would
suffer no loss he declared. TT is
true that this loss would not be
immediate. But the effect of cam
ceiling one years taxes is to confer
a gain on each taxpayer. In the
long run that gain would reflect
itself in one years less taxes to
pay"
Warns of Further Taxes.
| Senator Byrd said approval Of the
! committee bill would be followed bv
| demands for increases in tax rates
before the ink dries on signatures
on the enrolled bill"
Another opponent of the commits
tee measure, Senator ODaniei,
Democrat, of Texas. proposed that a
20 per cent withholding tax on
wages and salaries be collected. be-
ginning July l, and applied on what
the taxpayer owes in his 1912 IL
ability.
Senator Ferguson, Republican. Of
Michigan declared in a statement
that the National Association of
Manufacturers is conducting an Or
ganized campaign to whip up sup
port among Senators for the George
proposal.
Senator Ferguson read what he
said was a copy of telegram sent
out bv the NAM to its members
urging them to communicate with
their Senators and urge support of
the George proposal because op-
ponents of full years tax forgive
ness are likely to press for higher
individual and corporate rates i'm
mediately.'
The telegram said that adoption
by Congress of the George proposal
is likely to postpone consideration
OF further tax rate increases until
late this year with the fair pos
sibility of no additional corporate
tax"
Senator Ferguson said he believed
that was a very good argument"
against the George amendment.
adding that cit seems to me that
if we need additional taxes. some
of these corporations may be able
to provide them out Of their war
profits"