Evening star., 1943-10-15
Murray Likens
Sales Tax 10
National PayCut
CIO Chief Leads
Drive Against
Proposed Levy
BY the Associated Pre.r

PRESIDENT Philip Murray OF the
CIO blasted away today at pro-
posalS for national retail sales
tax, bluntly warning that if such
a levy became law, labor would
demand wage increases "to make
up for this unjustified wage cut"
THE proposed sales tax levy
would be the equivalent of a mill
tary defeat" he told the House
Ways and Means Committee, con-
sidering new tax legislation.
Economic Sterilization Director
Fred M. Vinson previously told the
committee 10 per cent sales tax
would cause an per cent rise in
the cost Of living and that subse-
quent demands for wage and price
increases would break the hold the
line" economic policy, opening the
way for wild imitation.
Supporters of the tax contend it
would deter imitation.
Murray's Statement.
Mr. Murray. who said he repre-
sented 100000 working men and
women, declared:
I'VE are absolutely opposed to the
imposition of any sales tax.
The sales tax is directed at the
loW-income group, it is the worker
and his family that spend prac-
tically all of their money just to
keep themselves alive.
They are to have their full in
come in effect taxed under this
most vicious type of tax legislation.
High income groups that spend only
a portion of their income for food,
clothing or other necessities aye
to have just that small percent
age taxed, whereas the rest of their
income may be continued to be
amassed for further concentration
OF wealth in their hands.
In peacetime a sales tax is vi
cious enough. but in wartime, when
we are trying to assure our war
workers of sufficient funds to main
tain themselves, the proposed sales
tax would be the equivalent of a
inlHtdry oeleat.
National Wage Cut"
"A sales tax is an imposition OF
a national wage cut bearing most
heavily on the low income groups.
Such a tax would be a violation
! OF the obligation given by this Gov
ernment to the working people OF
America that wages and prices are
| 10 be stabilized as of their relation
ship which prevailed on September
/ Is, 1912"
| MI. Murray presented this outline
OF the CIO position on taxes:
l. There must not be imposed anv
further taxes on those receiving
$1,000 year or less. To do so would
reflect a callous disregard of the
disastrous impact which such in
creased taxes would have on the
morale. health and working efici-
ency OF our war workers"
z. The present tax exemptions
must be increased to $3.50 for the
single men, Sl500 for the married
couple, and S4OO for each depend
ent. The exemptions now are $500
for single persons, 81 200 for married
couples and $3.50 for each child and
the Treasury has proposed that ex-
emptlonS be further reduced.
3, The 5 per cent Victory tax must
be repealed.
4. The basic principle of direct
taxes, III wartime, should be that no
individual, after taxes, should re-
tam any income in excess of s25 900
year,
Higher Excess Profits Tax.
D, The income and surtax rates on
corporate incomes above $4,000
should be increased from 40 per
cent TO at least SIS per cent" and
an effective excess profits tax at
the rate of 80 per cent, without
postwar credit, should be levied on
profits above per cent to per cent
OF invested capital. Profits in ex-
cess OF average 1886 1899, but below 4
to per cent of invested capital
should be taxed at the rate of IS
per cent
s. Estate and gift taxes should be
increased.
consider now the So-called Wagner
Murray -Dingell social security bill,
extending both the coverage and
benefits for unemployment compen-
satlon, old-age security, disability
and health insurance.
The CIO president opened the
counter-offensive against the sales
tax shortly after proponents had
begun to claim enough strength to
pass the levy-probably at 5 per
cent, without exemptions.
Mr.. Murray was invited before the
committee after he had written
Chairman Doughton as follows:
In line With the aims of pre-
serving health and efficiency stand
ards, there should be no doubt of a
quick rejection of all proposals for
a sales tax or for substantial in
creaSes IN consumer taxes on the
goods that low-income groups buy"
Mr.. Murray's appearance followed
(See TAXES, Page A-8)