Evening star., 1943-02-14
Pay Limit
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through Congress and become Law
by April, since the Treasury Depart.
ment figures it will be necessary tc
have authority to raise the debt
limit by that time in order tt
finance the war.
The second reason was that they
had been informed by tax officials
that If the Presidents order limit
ing salaries to $4,000 net stood
there would be loss of income tax
revenue of s1l0,000,00 Further
they believed that it was only fan
10 the taxpayers to know what
would be the status of salary Hmi-
tatio mas early as possible.
Mr.. Doughton. after he had been
ordered by the committee to report
the bill favorably. said he did not
know when the measure would be
taken up for consideration by the
House. 1t is expected, however, than
an early report will be made along
with a demand for immediate ac-
ton.
Passage Likely.
With one third of the democratic
membership of the committee vot-
ing for the Disney rider, it Is ex-
pected that enough Democrats will
be found in the House to put the
bill through. Furthermore, serious
democratic opposition to the Presi-
dents salary limitation order ex-
lists In the Senate, and 1t may pass
that chamber too. In fact, there
Is reason to blieve it will receive
favorable Senate action.
Under the Disney bill, the new
salary ceiling would be retroactive
to October 2. 1912, when the second
Price Control Act became effective.
Mr.. Disney. discussing the action
of the committee and the effect Of
his amendment. said it will effectu-
ally "nullify" the executive order
limiting salaries. Congress. he said,
in passing the Price Control Act.
had never proposed to give author
ity to place limitation on salaries
as the President had done.
This amendment of mine places
. ceiling on salaries" Mr.. Disney
said. 1T does not cut salaries
No wages were cut by the executive
order issued last October, but ar
effort was made to cut salaries
Now, if this becomes law. We will
have a ceiling on both salaries anc
wages"
Mr.. woodruff said. The Way
and Means Committee has giyer
definite notice to the President tina
the usurpation Of powers grantee
to Congress by the constitution
must stop. There must be stoI
TO government by 'directives' from
the Executive.
The Ways and Means Com
nittee OF the House, the Financ'
Committee Of the Senate and tn
House and Senate all made it clea
during the consideration Of tn
Price Control Act that salary cut
ting and limitation was not in
tended. Yet the day after the &C
became law this executive crde
was issued by the President in di
rect conflict with the intention o
Congress"
Wording Given.
The language OF the Disney sub
stitute relating to the salary llmita
ton is as follows:
Section 4. Effective as OF Octobe
2, 1912. section 5 of the act Of Oc
tober 2. 1912, entitled An act Il
amend the Emergency Price Con
troll Act OF 1912, to aid III preventing
infation, and for other purposes
is amended by adding subsection
ID TO section s, as follows:
"(d) No action shall be takel
under authorization Of this act, o
otherwise, which will limit the pay
ment Of annual salaries to a maxi
mum amount less than the create
Of the following:
I'D The annual rate Of salar.
paid to such employe on Decembe
2. is4l; or
"(2l An amount which after re
ouction by the Federal income take
thereon would equal s25 900
Early Limit Was $4,000,
Mr.. Woodruff and Mr. Disney SAT-
the purpose Of the committee wa
to prevent great increases in salar
growing out OF the war, and ira
the final provision Of the Dlsne
measure had that purpose.
The Presidents Executive Orde
OF October 3 provided that ther
should be no increases in salary TO
those getting more than $4,000
year, except on promotion to NOR
or responsible work, and that n
salary was TO exceed s25 900 yea
after payment Of taxes. insuranc
premiums and fixed debts alread
incurred.
At that time, the CIO. which ha
proposed a salary limit of s25 900
year, took credit TO itself for havin
initiated the move.