Evening star., 1943-09-08
House Tax Chieftains
Confer on Means for
Boosting War Levies
BY the Associated Press.

BY the Associated Press.
The House Ways and Mean.
Committee called an executive
huddle today to map plans fol
measuring taxpayers ability te
meet more and more of the wars
cost out of current income.
Most of the session probably will
be devoted to setting the procedure
for public hearings on a new reve.
nue. bill and on more immediate
review of the War Contract Rene
eotiation Act, which permits the
Government to recoup excessive
profits.
But, there were indications that
the committee also might:
|. Request the Treasury and its
tax experts to submit recommended
ton on how to obtain the $4,000
100000 in new revenue sought bv
President Roosevelt. September 20
the day the tax hearings are due
TO begin. would be the deadline for
their submission.
May Ask Wilson'S Advice.
q Invite Fred M. Vinson, director
Of economic stabilization. to fur
nish his views on the revenue prob
lem and possibly work with the
committee in an advisory capacity.
;. Set un the canvas for a general
picture of the Nations economic
status, and answers to. such oues-
tions as these: How much of the
war appropria tions remains unex-
spended9 Where can economies be
effected IN Government operations?
Meanwhile, Representative Knut-
son, Republican, of Minnesota. a
ranking minority member. served
notice that he would remind his COM
mittee colleagues of "gentlemen's
agreement" not to raise individual
taxes in 1943 or 1914. He said the
agreement was made during consid-
Grafton of the pay-as-you- tax
bill
Asserting that the American peo-
pie today pay the highest per
capita tax in the world Mr.. Knut-
son said there would be no increase
in individual levies las far as am
concerned" He conceded, however.
that war needs may drive us to it."
Chairman Doughton, in reporting
that he has not been furnished with
blueprint" of the Treasury's
recommendation for obtaining new
taxes, declared that there seems to
be great deal of confusion as to
what might be presented"
Meanwhile, it was learned that a
hot controversy between Secretary
OF the Treasury Morgenthau and
the joint congressional tax staff had
been settled-at least temporarily.
MIR. Doughton said Mr.. Morgenthau
had informed Colin STAN, head of
the staff, of the Treasury's. desire
and willingness" to cooperate in
its work.
The quarrel developed when the
congressional staff sought informa-
ton from Treasury officials on their
revenue program without first con-
sulting the Secretary. He was re-
ported to regard that quest, when
1t was under way. as fishing
expedition
Manufacturer Sales Tax.
Mr.. Knutson said that If war
needs made necessary new source
of revenue he would prefer"
manufacturers sales tax to a gen.
eral retail sales tax because of its
greater simplicity and ease OF ad-
ministration. g5
He held that there was little
chance of Congress writing a meas
ure providing for compulsory saw
ings. In outlining his views on the
next revenue bill Mr.. Knutson
maintained that Congress should:
l. Give some encouragement to
so-called risk capital to stimulate
postwar development" of such in
dustries as prefabricated houses.
air conditioning, the helicopter and
plastics. All these new undertak-
ings." he said, will require .enor-
NOUS sums for development, and the
American investor will furnish the
money If given reasonable encour-
agement. However. he will hold back
II the policy is to be that the Gov
ernment will take most of the
profit while he absorbs the losses"
II Contract Renegotiation.
2. Transfer the power to renego-
tiate war contracts from the eight |
agencies now handling the work to
the Treasury and Internal Revenue
Bureau, and provide that renegotia-
tion take place after. instead of be-
fore, taxes so that people doing
business with the Government will
know where they stand"
3. Provide in the next tax bill "for
enabling industry to set aside a
sufficient fund out of its earnings to
make postwar requirements. II this
is not DONE he said, industry will !
have to go to the Government for
financing. and that would lead to
State socialism.