Evening star., 1943-11-28
George Serves Notice
Senate Won't Boost
House Tax Bill Greatly
BY ]. A. OIEARY.

CHAIRMAN George OF the Senate
Finance Committee said yesterday
1t will be impossible to get through
Congress new tax bill that mate
rally departs from the $2,l40,OOO,-
600 measure passed by the House
and that he had so advised Treas
ury officials.
The committee will start hearings
on the bill at 10 am. tomorrow,
With Secretary of the Treasury Nor
genthau as the first witness. The
Treasury has asked for $1O,5O0, ,O0O,-
600 in new revenue.
Senator George said that despite
his advice to the Treasury. he be-
lleves Mr.. Morgenthau will renew
MS recommendations made to the
House, and I am sure he will not
reduce the amount of new revenue
requested"
johnson Shares Same View.
Sharing the same views, Senator
johnson, Democrat, of Colorado. a
member OF the committee. predicted
that If the Senate would accept
Secretary Morgenthau's program we
would not have a tax bill through
by next July" He based that
opinion on the strong position taken
by the House, and the fact that IAN
election is just ahead"
Senator George estimated that be-
tween $500000.000 and 5000 900. 900
additional revenue would be COL
lected next year if the period in
which liquor may be kept tax free
IN warehouses is cut from eight to
four years-a question which will be
considered by his committee. He
pointed out, however. that estimate
is based on the House approved in
crease from S6 to SO a gallon in the
tax on 100-proof whiskey. If the
warehouse period were shortened,
the additional tax yield would de-
pend on whether the Senate left
the House rate unchanged.
The Georgian is still undecided
whether to support the Vandenberg
proposal to freeze for another year
the Social Security payroll tax OF
l per cent each on employer and
employe, which will go up to 2 per
cent on each on January l unless
Congress interveneS.
No Need for Increase.
The Senator said he is convinced
there is no necessity for the increase
insofar as the security of the old
age retirement reserve fund is con-
cerned. In fact, he said he did not
believe the fund would be endan-
gered if the present tax rate should
be continued for the duration of
the war
Several committee members have
advised Chairman George they will
renew the fight for sales tax, but
the Senator said his latest infor-
nation is the Treasury is still op-
posed to such tax He previously
has predicted sales tax can not be
put through without the backing of
the administration.
Senator Clark, Democrat, of Mis-
souri,, an opponent of Ahe sales tax
on the committee. said:
There is no subject that gives
rise 10 so much misinformation as
the estimated yield from a sales
tax. If you tax food, clothing and
medicine, you impose an intolerable
burden on the people, on top of
sales taxes in many States. If
you exempt those necessities you
don't raise any money to speak of
unless the rate is very high
He said sales tax as high as 10
per cent would yield $4,000 ,000, 900,
which would be reduced to a net
figure of S5.200,0O0. 900 after allow
ing for articles already subject to
special excise taxes. If food, cloth
ing and medicine We're exempted.
the remaining revenue would be
81 400 100000 he added.
Senator George said it is obvious
there can be no substantial increase
in the house bill except by increas-
ing the burden on individual in
comes, or by reaching individuals
a sales taX-both of which
proposals the House rejected. The
Georgian said that in view of the
stand taken by the House. I have
stated to Treasury officials l thought
it would be an impossible task to /,
put through a bill that departed
from decisions previously made by
the Ways and Means Committee on
individual incomes, etc"
The bulk of the new revenue in
The House bill comes from increased .
excise levies on commodities, and
postage rates, amounting to $780,
100000, and 100000 added to
.he corporation tax levy,
0tnriun Tour