Evening star., 1943-11-25
Senate 10 Open
Hearing Monday
On New Tax Bill
Quick Action Likely
On Measure Passed
By House, 200 to n
Ey the Associated Presa.


A new tax bill, which would
dip $2,140,000,O00 deeper into
American pocketbooks and hoist
the Governments income to an
estimated 81, 500, 900, 900 a year,
moved today to the Senate,
where its rapid approval was
indicated by an unusual shortage
OF significant amendments.
Chairman George announced the
Senate Finance Committee would
open hearings Monday and try to
complete them by the end Of next
week. The Senate itself will have to
act rapidly to match the record Of
the House, which passed the bill
yesterday by a standing vote of zoo
to 81 after day of debate.
The bill clips an average of less
than 81 more from the 4,00o, 900 in.
dividual income taxpayers, hits cor.
porations for $616, 6,0O0, 900 additional
in excess profits rates, increases
postal rates by $l66. 300, 900 and
comes down heaviest-to the extent
Of $1,201, ,700, ,000-on purchasers Of
such items as liquor, furs and Jew.
elry.
Morgenthau Sees Senators.
Secretary Of the Treasury Morgen.
thau talked with leading Democrats
on the Senate committee yesterday,
but got little encouragement that
he would receive anything more
than courteous reception when
he renews his request for $10,500,-
000, 900 again Monday morning.
While Senator George would not
comment on the private conversa-
tions between Mr.. Morgenthau and
the Senators. he told reporters later
he considered the $4,000, 900 900 bill
"a considerable increase"
Until a couple of years ago We
would have considered that q pretty
heavy job" he said.
Senator George observed that the
Treasury's latest calculations In
dicate the existing tax laws will
bring in more than $41, 900 900 900
over full years operation. and said
the additions approved by the House
would raise the total to approxi-
mately $43,500, 900 900, not counting
a billion dollars which comes In
through social security levies.
George to Offer Amendment.
Senator George himself Is going
to propose an amendment which
would allow income tax payers to
let their March is. returns stand
for the entire year, unless they de-
sire to alter them because Of changes
In income.
Senator Vandenberg Of Michigan.
ranking Republican on the commit
tee, already has announced his in-
tention Of attaching rider freezing
the social security tax at its present
rate of per cent each on employers
and employees. Without such action.
the rate automatically would dou-
BILE January /.
Senator George did not entirely
rule out the possibility of increased
revenue from the bill, If amend.
ments not now in sight are pre-
sented and pressed. The House
Ways and Means Committee, how
ever. has practically closed the door
on Federal sales tax or sharp In
creases In individual income rates.
Under the bill approved by the
House, the present withholding
rates for individual income taxpay-
ers remain unchanged, as do the
estate and gift tax rates.
Existing Exemptions Retained.
The Victory tax is integrated into
the income tax by increasing the
normal tax rate from to 10 per
cent. Existing exemptions and
credits for dependents are retained.
but the earned income credit, q vex-
atious item in most amateur tax
calculations, goes out.
The excise tax on whisky goes up
from $6 q 100-proof gallon to 50,
with other increases for beer and
wines. Pari-mutuel betting on
horse races would come under the
tax wire. Rates would be increased
on telephone service, luggage, cos.
metics, pool tables and light bulbs.
II not further amended, it will
cost cents rather than to send
an airmail letter, and cents rather
than 2 for in-town mail.
The corporation excess profits tax
would rise from 80 to 95 per cent.