Evening star., 1943-11-14
Senators Will Decide
In Week Whether 10
Boost Payroll Tax
BY ]. A. O'LEARY.

The Senate Finance Committee
may decide within . week whether
any steps should be taken by Con-
gress to postpone again the in
crease in social security payroll
taxes from l to 2 per cent eAch on
employer and employe, which will
take eject automatically on jan
uary as the law now stands.
That was indicated yesterday by
Chairman George, who also ex-
pressed belief that the new general
revenue bill can be dispatched to
the White House two weeks after 1t
is received by the Senate-too late,
he noted, to give the new and in
creased excise taxes much OF a nib
BILE at Christmas purchases.
The Georgian announced labor
organizations have been invited to
give the committee their views this
week on the social security issue
after which the group will deliberate
on the question whether it would be
safe to put off the increase for an
other year, in view of the present
size of the reserve fund and ex-
pected requirements following the
war.
Twice Postponed.
When the social security program
was inaugurated the payroll tax for
old age retirement was slated to in
crease more rapidly than 1t has.
Senator Vandenberg, Republican, Of
Michigan on two previous occasions
has had the first step-up from to 2
per cent postponed, on the ground
the additional funds were not needed
to finance the retirement system for
the time being, and on the conten-
tion that in a government insurance
system the full-reserve basis of ac-
emulation is not required.
The Michigan Senator called for
another review Of the figures this
fall but has withheld judgment as to
whether there should be another
postponement until all the testimony
is heard. The views of the labor
leaders will complete the hearings.
A decision is expected soon, be-
cause if any further postponement
is to be proposed it probably would
be considered in connection with
the $2,149,900,000 new revenue bill,
which is due to pass the House
within 10 days.
Senator George revealed that he
wants assurance written into the
general revenue bill that, If the tenn
porary wartime Victory tax is to be
integrated with the regular income
levy by raising the normal rate on
individuals from to 10 per cent it
be limited to one year after the war.
Temporary Levy.
The present victory tax, he
pointed out, is a temporary wartime
levy, and, in the House revenue BILL
is being integrated into the normal
tax rate merely to simplify the re-
turns. For that reason, he said, pro-
vision should be made to reduce the
normal rate a year after the war
ends, by whatever amount is now
added to cover the Victory Tax.
With present indications that the
tax bill will not pass the House
until next week. just before Thanks
giving, hope Of sending it to the
President by Christmas appears
slim. Senator George indicated
Senate hearings will be brief, unless
the Treasury urges heavy increases
IN the House measure, which now
carries only one fifth of the SIC, $780,
100000 asked for by the admins
tration.
Senator George said he has not
taken poll of committee views, but
does not believe that the House total
will be increased substantially, un-
less the Senate group should decide
to 60 into q general sales tax OF
compulsory savings. In the light
of the registered opinion of the
House Committee, he indicated he
sees no hope of getting through
either Of those proposals. 1