The Wilmington morning star., 1943-09-08
CONGRESS MAY
END INCREASE
ON new TAXES
STRONG HINT HEARD
Republican Scion Asserts
That American People
Heaviest Taxed

WASHINGTON, Sept. 7.-R-A
strong hint that Congress may re-
fuse to levy new and higher taxes
this year was dropped tonight by
Rep. Knutson Or. Mimi, Repub-
lican tax strategist, while Chair
man Doughton ON. c. Of the
House Ways and Means commit
tee conceded that confusion" sur
rounded the search for more rev.
enue.
Asserting that the American peo-
pie ''now pay the highest per cap
tia tax in the world" Knutson
declared that the nations lawmak-
ers would be "most reluctant to
impose any additional taxes" but
qualified his statement by saying
that war needs may drive us
tc it."
Doughton said that the Treas
ury had not as yet furnished him
with a blueprint of its recon-
mendations on where to find the
additional S12, 100000, 900 sought by
the Administration, and declared
that there seems to be a great
zeal of confusion as to what might
be presented.
Their views were expressed as
the committee prepared to met
tomorrow to arrange for public
hearings on the new revenue bill
ard on review of the present
law authorizing renegotiation of
war contracts by the government
to recapture Excessive" profits.
Meanwhile, it was learned that
hot controversy between Treas
my Secretary Morgenthau d
the joint Congressional tax staff
had been settled-at least temper
arily Doughton said that Nor
genthau had informed Colin Siam,
head of the staff, of the Treas
ury's desire and willingness" to
cooperate in its work.
The quarrel developed when the
Congressional staff sought infor-
nation from Treasury officials on
the Treasury revenue program
without first consulting the secre-
tary. He was reported to regard
that quest, when it was underway,
as a fishing expedition
Knutson, ranking minority
leader member of the Ways and
Means committee, said that if war
needs made necessary new
source of revenue, he would "pre-
fer a manufa cturers sales tax to
general retail sales tax "be-
cause of its greater simplicity and
ease of administration"
He held that there was little
chance of Congress writing a
measure providing for compulsory
savings. declared TIL at there
would be no boost in individuals
levies 'as far as am concerned. ;"
and said Il would hate to see
any increase in the rates on cor
porations.
In outlining his views on the
next revenue bill, Knutson main
tanned that Congress should:
l. Give some encoura cement
to so-called risk capital to slim
ulate postwar development of such
industries as prefabricated houses.
air conditioning, the helicopter and
plastics. "All these new under
takings," he said, will require
enormous sums for development
and the American investor will
furnish the money if given reason
able encouragement. However, he
will hold back if the policy is to
be that the government will take
most of the profit while he alb
serbs the losses"
2. Transfer the power to rene
gotiate war contracts from the
eight agencies now handling the
work to the Treasury and Bureau
of Internal Revenue, and provide
that renegotiation take place aft
err, instead of before, 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
sufficient fund out of its earn
ing to make post war replace
ments'' eff this is not done" he