Evening star., 1943-10-26
81 Tax Boost
|0n Gallon Of
Whisky Voted
House Committee
Rejects Tobacco,
Cos Increases
BY the Associated Press.

BY the Associated Press.
The House Ways and Means
Committee voted today to boost
the tax on liquor from Sc a gal
lon to $40, but rejected all pro-
posals for any increases in to-
bacco or gasoline levies.
Committee members estimated
that under the increased liquor tax
the total levy on a drink of 100
proof liquor, estimating 80 drinks
to the gallon, would approximate
l2.5 cents. The tax would be smaller
on lower-proof liquors.
The group also approved increases
in taxes on other alcoholic bev-
erages, as follows:
Beer. from ST a barrel to So; wine
under IA per cent alcohol from 10
cents gallon to IS cents; wine
IA to 81 per cent from 40 cents a
gallon to so cents: wine over 81 per
cent, from ST to 50 a gallon; spar
king wines from 10 cents a half
pint to IS cents; other wines, from
5 cents half pint to 10 cents.
Void Six Months After War.
The committee stipulated that
within six months after the Presi-
dent declares an end to the war, the
taxes on liquors. beer and wine
should return to the rates as OF
January l, l943.
Meanwhile, Representative Gear
hart, Republican, of California, a
committee member, urged enactment
of Federal retail sales tax, declar-
ing it the only way left open to OBJ
tain needed wartime billions now
that other proposals have fallen fat
Mr.. Gearhart was the first Repub-
lican on the committee to declare
publicly for the sales levy, which
also has been advocated by Repre-
sentative Robertson, Democrat, of
Virginia
His statement came after the
congressional tax staff submitted
proposals to raise postal rates and
impose new excises on so-called
Iluxuries-a program that would
raise only about sl,5OO,OOO OOOO in
contrast to the administration re-
quest for ,500,000,00O.
Experts Outline Program.
The tax staff, a group of experts
employed by Congress to advise on
revenue matters, suggested:
l. That the postal charges on first
class, ut-of-toWn letters be boosted
from 3 cents to for the first ounce
that 3 cents be charged for local
letters, instead of 2, the airmail rate
be boosted from s to 10 cents, and
that charges be increased along the
line for other classes of mail.
2-That larger excises be collected
from a long list of items, such as
liquor. cigarettes and furs, and new
excises be put on pop. candy, chew
ing gum and pari-mutuel wagers.
1t was suggested the liquor tax be
pushed up from S6 to SO a gallon
cigarettes. $3.50 to 81 a thousand
and that cent be collected on
every bottled soft drink.
3-The Federal gasoline tax be
raised from Is to cents a gallon
Repercussions Seen.
The Treasury had suggested that
81, 500 100000 additional be collected
through eXcises, and it made no
proposals for postage increases. Tile
postage rates were not discussed at
public hearings before the commit
tee, and the proposal probably will
bring loud repercussions before
Congress finally votes on the new
tax bill.
The administration asked sl0.50O.-
100000 from new taXes-S6, 500 900, :
900 from personal incomes. s2,5OO,-
100000 excises, ,1O0,0O0,OOO from
corporation incomes and $400 900, ,OOC
from higher estate and gift taxes.
Following Republican declara
ton against higher taxes, the COM
mittee already has voted against any
increase in individual income rates
and decided to freeze estate and gift
taxes at present rates. There ap-
peared little likelihood of any ma
terial increase in corporation rates