Evening star., 1943-04-12
Roosevelt AssaiIs,
But Doesn Veto, Bill
Repeating Sa|aryCurb
Asks Congress to Pass New
Income Tax to Insure
Equal Sacrifice for All

President Roosevelt's proposal
to limit individual net salaries to
$4,000 through imposition of a
super war tax again was before
Congress today after the Chief
Executive had been blocked in
an effort to impose this restric-
ton by executive order.
The legislation nullifying the
order was carried as rider to the
bill raising the public debt limit
from S125 ,0000 100000 to S210,000,-
100000 that went into effect at mid
night Saturday without the sigma
ture Of the President, who said that
he was refraining from a veto only
''to avoid embarrassment to our
war-flnancing program The old
debt limit virtually has been reached
and the Government today is start
Ing to float a new S13,OO,OOO,0O
war lean.
Congress Action I'LL considered
The President issued the order
after Congress had refused to enact
the tax he had recommended, and
the nullifying legislation was the
result. In the bristling statement
yesterday. which explained that he
was letting the measure go into
effect without his signature, the
President condemned Congress- ac-
tton as "ill-considered,' and ap-
pended to the statement copy of
the letter he had sent to Chairman
Doughton of the House WAYS and
Means Committee arguing for the
salary limitation.
In the statement, Mr.. Roosevelt
declared that Congress has failed to
recognize that the essence of sta
billzation is that each should sacri-
flee for the benefit of all"
Congress, he observed. has author
ICED drafting of men at $500 a year,
but has refused to authorize" re-
duced salaries for civilians, no mat
ter how high their income.
Would Have Vetoed Bill.
If the circumstances We're other
wise Mr.. Roosevelt said, Il should
veto the bill. Even so, I cannot
permit this legislation to become
effective without registering my pro-
test against the attachment to this
bill of an Irrelevant and unwar-
ranted rider. The effect of
this provisions is to termi-
nate the authority given to and
exercised by me to prevent the pay
ment during the war of salaries in
excess Of S67 200. (This is the gross
amount Of income that becomes
$4,000 net after taxesl "
Il agree with those who say that
the limitation on salaries does not
deal adequately with the problem of
excessive incomes. Practical limi-
tatlons ought, by appropriate tax
alton, to be placed on all income
earned and unearned. I urged and
would have welcomed a special tax
measure in place of the fiat s67. 200
salary limitation.
But the Congress has chosen to
resclnd my action limiting excessive
salaries without even attempting to
offer substitute"
Mr.. Roosevelt said that under the
legislation at hand 1000 or 5000 per-
sons could continue to receive sal
aries exceeding $4,000, 750 could
received more than 100000 and
about 80 more than s250,OOO, while
three or four persons could receive
salaries exceeding $500, 900 a year.
Doesn't Help Morale"
The exemption accorded these
excessively high salaries does not
help morale, but American morale is
too strong to be permanently in
Jured by this ill-considered action ~
he declared
While the rescinded executive
order and the new law both apply
only to wages and salaries. the su-
pertax proposed by Mr.. Roosevelt
would limit to $25 ,O0O-net Income
from whatever source derived. in
cluding income from exempt
securities"
In the letter to Mr.. Doughton
the President had said that if the
supertaX were enacted, he would
anmediatel reSCind the salary Or