Milford chronicle., 1943-12-17
SENATE GROI'P FREEZES
SOCIAL SECURITY RATE
lcOntlnued from FIrst PAGE

cided by tally of IL to 10 to re-
tain a House provision requiring
labor unions and other non-profit
organizations now tax exempt. to
file returns OH their financing
with the government.
Labor leaders have opposed the
clause as IAN entering wedge" to
federal taxation of unions.
Virtually completing action on
corporate tax changes. the COM
mittee endorsed the House plan TO
increase the excess profits rate of
95 per cent. retaining the existing
80 per cent overall ceiling with re-
spcct to corporate normal, surtaX
and excess profits taxes.
The committee also approved
the House action in reducing from
seven to six per cent the invested
capital credit allowed corporations
in computing the excess profits tax.
for corporations with $5.000000 to
$4,000, 200 invested capital. Above
$4,000 900. the senators voted TO
cut the credit from six to five per
cent. but declined to 90 along with
the House in further reduction
to four per cent in the case of
firms with more than 100000 900
invested capital.
Tax Changes Postponed
Controversial adjustments in the
individual income tax law were
postponed until later in the week,
to give the Treasury time to ans
wcr charges that it had made AN
unfair and unwarranted attack
upon a HOuse-apprOved device for
iutcgrating the victory tax with
the regular income levy. The charge
was leveled by Colin +. Stam. chief
of the staff of the joint committee
on taxation.
The House provided a minimum
victory tax, the rate to be not less
than ; per cent of the net income
after special exemptions amount
ing TO $500 for single persons and
500 for married persons. with $lOO
for each dependent
The Treasury suggested merely
lowering the credit for dependents
from $3.50 TO $500. and the married
exemption from 1920 to $1.100.
leaving the $500 single persons ex-
emption untouched. STAN contend
cd that under the Treasury plan.
only 2,O00,000 of the l1.00O.000
victory tax payers are left upon
the tax rolls.
The Treasury" he declared, "ap-
parently preferred to defeat the
minimum tax than to make ii work
able in their estimation"
OleO Tax Remains
The committee declined to re-
move the federal tax of 10 cents
pound on colored olcomargarine,
voted to repeal controversial
windfall" provision of the pay-as-
yOu-go tax law. and set limit on
the deductions which the owner of
a consistently losing business can
check off against his income tax.
The oleomargarine amendment.
introduced by Senator Maybank
tD-SC). lost by a vote of about
II to s" Chairman George report
ed. 1t was opposed by senator's
from dairy states.
The rejected Windfall provision
was designed to recapture part of
sudden income rises which might
be attributed to the war. However.
il led to complications which some
senators criticized as unjust. Tn
der the provision, the taxpayer was
required to compare his income for
1912 or 1943. whichever was high
er. with his income for any one of
the base years 1887 through 1910.
If his 1912 OF 1943 income exceed
ed that of the base year by more
than $4,000. the difference was
subject to a surtaX.
George said revenue losses by re-
peal of the provision would be
slight.
If an individual tbut not a COR
pOration) loses money in business
for five consecutive years, the Sen
ate committee provided in an
amendment that he must recon-
pute his income tax for each of the
i've years. taking as an allowable
deduction in each case only the
gross income from the business
plus $4,000.
The committee voted to permit
to deduct from tax
able income contributions made to
organizations. under the
)ver-all charitable limit of per
cent of the firms net income.
The chairman said no estimates
we're available of the net revenue
:hange resulting from the decis-
ons.