Evening star., 1943-12-15
Senate Committee
May Act Today on
Whisky, Income Tax
Two Issues Remain
As George Seeks to
Get Bill to Floor
BY ]. A. O'LEARY.

The Senate Finance Com
mittee today may decide whether
to use the taxing power to re-
lieve the current whisky short
age, and also how best to sim
plify individual income tax re-
turns.
Those are the two major issues
remaining to be settled as Chairman
George sought to get the approx
mately $4,000 900 900 revenue bill to
the floor Of the Senate by the end
Of this week.
The committee mas before it a
motion to shorten from eight to
four years the period in which
liquor may be aged IN bonded ware
houses without payment of tax
The Senate Judiciary Subcommit-
tee investigating the liquor indus
try, has been told such a change
would give the Government annther
81 900 900 900 Of revenue in 1914. ap-
plying the House-approved s9-a-
gallon tax to the III, 900 900 gallons
more than four years old now In
storage. Members OF the investi-
eating committee believe release of
this whisky would stop alleged black
market operations by increasing the
available supply.
Future Crisis Seen.
On the other side of the question,
it will be argued in the Finance
Committee that to force the distil-
lers to release the stocks on hand
faster, with no beverage alcohol be-
ing made during the war will re-
suit in period after the war when
only green whisky will be avail
able.
Senator George said last night he
believed it would be difficult for the
committee to turn down the pro-
posal, however, because of its reve-
INCREASING possibilities.
Action was put off yesterday at
the request of Majority Leader
Barkley, who said additional wit
nesses were on their way to Wash
ington to present more evidence
today. 1t was believed unlikely the
committee would resume open hear
ings, though it may accept the new
testimony in executive session.
Tax Plan Disputed.
On the handling of the individual
income tax, the congressional and
Treasury experts are at loggerheads
The issue is not so much over the
revenue involved, but the method
adopted by the House of simplifying
the present setup, by abolishing the
separate S per cent Victory tax, and
raising the normal income rate from
E to 10 per cent, and repeating the
10 per cent earned income credit.
The latest round in the debate be-
tween the experts came yesterday in
the form of a brief filed by the sta
tistical staff Of the Joint Congress
sional Committee on Taxation, in
which they accused the Treasury OF
being more intent on defeating the
House plan than in improving it.
The congressional experts argued
that Treasury alternatives would
drop from the tax rolls approximate
ly 5000, 900 taxpayers who now pay
only the Victory tax. The brief
admitted minor complications NAV
occur under the House plan within
"a narrow range of gross income in
those few instances where the tax
payer chooses to file on the long
form of return" Two amendments
were recommended to remove these
complications.
Changes made thus far by the
Senate group have cut the revenue
yield of the bill from $2,l40. 900 900
to 1892 ,000, 900, as compared with
the administrations goal of s10.-
SOC, 900 900.
The committee also voted yester-
day to postpone for another year
the social security payroll tax in
crease, from to per cent each on
employer and employe, due to take
effect January l. The present
per cent rate from both sources
brought in $1,130,000, 900 during the
last fiscal year. The increase to
per cent would at least have doubled
that figure in the next fiscal year
and, while it is collected for a spe-
cif1c purpose, 1t helps the current
condition of the Treasury.
Advocates of postponing the in
crease contend the reserve for old
age retirement is more than ade-
quate to meet retirement payments
and argue that social security taxes
should not be increased to meet the
general financial problem.