Evening star., 1943-10-05
Continued From First Page

pedoed shortly after it was launched.
when Chairman Doughton termed
1t ambitious and in some respects
''indefenSible.
I do not see at this time" he
said, how we can make the full in
creaseS requested, either in indi-
Vldual, corporate or excise taxes"
DoughtOn's Statement.
Calling reporters to his office, he
said:
ANY benefit which might arise
from the effect Of the TreaSury's S
plan in curblng initiation would be
more than offset by such unbear-
able increased burdens, which NAV
well have tendency to break down
the morale Of the taxpayer.
4 feel that the Secretarys (Mr
MorgenthaW program is more am
bilious and call for more tax, in the
aggregate, than the taxpayers can
reasonably bear at this time. in view
of the already heavy tax liability.
I think some Of the increases
recommended on excise taxes Cthere
are a score of them ale utterly in
dcfensible-picking out a few ar
tlCleS that are already taxed eX-
cesaively high and imposing on
these articles greatly increased
rates, leaving without any tax
whatever other articles which cam
not be claSsed as necessities
Equally chilly was the reception on
the Republican side of the commit
tee, Rep. Carlson, Republican of
Kansas, said, Il don't think we can
add this burden now on the middle
class group. We had better start
looking for economies We won't be
able TO raise more than $4,000, 100000
IN additional taxes"
Economic Sterilization Director
Fred NJ. NlnSon was scheduled to 90
before the committee today in an
effort to salvage as much as possible
Of the administration program.
One Of MI WILSON'S chief argu-
ments is expected to be that higher
taxes are needed to stave off inf1a-
tlon.
Presented by Mr. Morgenthau and
Randolph Paul, Trea sury general
counsel, the administration program
proposed an increase OF approx
mately 30 per cent IN the amount OF
Federal revenue to be taken from
personal incomes. with surtaX rates
10 De more than doubled for lndl-
VldualS with taxable income between
$1,000 and $4,000
II asked for steep increases in
leVieS on corporations and on such
articles as liquor ana tobacco prod
uCtS IT would place new taxes on
soft drinks and chewing gum.
MI MOrgcnthau suggested that
the withholding levy on the taxable
portions Of wages and salaries. now
20 per cent. be put on a graduated
basis and that it cover gross earn
lngs OF all wage and salary income
groups, instead OF Just the first
bracket income level as at present.
Graduated Scale.
Under such a plan the withhold
ing rate might range from ! per
cent for the small wage Garner. 7
per cent on the total earnings of a
marrie., man with net income Of
81 500. u per cent for 50 900 income,
l8 per cent for $1,000, 26 per cent
for s. 900, 36 per cent for $4,000
and so on up until the rate would be
80 per cent for person having a
salary Of Sl000,000 or more
The administration proposed that
the additional taxes be obtained in
this way: $3.50 100000 from indl-
vidual incomes, SI.l40,OO0000 from
corporate incomes, s2490 100000
from eXclses and $4000O0000 from
estate and gift taxes The sl0,500,-
100000 would bring the total annual
tax take to almost $4,000. 900 600
about one-third the national income
and approximately one-haf the cost
Of running the war this year.
Mr. Morgenthau said 96 cents of
every dollar being spent by the Gov
eminent is going into the war effort
and that the increased taxes we're
needed not only for revenue, but TO
curb imitation.
Under the administration plan
personal exemptions for married
couples would be reduced from 81 200
to S1.l00, dependents from $3.50 to
$500, while the single persons eX-
emptlOn would remain at $500. The
Victory tax and the earned income
credit would be repealed. the former
being lntegrated in the increased
SurtaX rates