The Wilmington morning star., 1943-12-15
Old Age Tax
Rate Frozen
By Senators
Senate Group Votes To
Hold Contributions AT
Current Rate
ONE PER CENT LEVY
Measure Also Requires La.
bor Unions To File
Tax Returns

WASHINGTON, Dec. "A Up -
NTH social security tax receipts
c,tstripping benefit payments by
rotio of more than SIX to one,
+,e Senate finance committee vot'
ri today to hold payroll contribu.
Tens by employees and employers
a. tbe current rate of one per cent
each throughout 1914.
The proviso, championed by SEN
.tor Vandenberg (R. Mich.) for
he third successive year, w a
..cked onto the tax bill, now cal
cnla+ed to add about 1892, 900, 900
annually to existing revenues. In
The absence of Congressional ac-
fon the social security levy would
sdvance automatically to 2 per
cent Jan. 2.
Board Head Favors
A. ]. Altmeyer, chairman Of the
Social Security Board, favored the
.u+omatic increase. Vandenberg
insisted though, TIL a t Altmeyer' S
owr figures showed a reserve of
qS0.O0O 900 in the fund last June
a and that contributions during
Se mast fiscal year totaled ST.
M00OOOO while expenditures ran
nlv Sl76,0 100000. Under the law,
! .mudent reserve mus be kept,
email to three times the highest
annual expenditures anticipated
during the five ensuing years.
Mstering greater strength than
in a SO tie vote yesterday, the
finance committee decided by a
tally of II to 10 to retain a House
provision requiring labor unions
and other non-profit examinations,
now tax exempt, TO file returns
on their financing with the gov
eminent.
Entering Wedge"
Labor leaders have opposed the
clause as IAN entering wedge" to
federal taxation of unions.
Virtually completing action on
corporate tax changes, the COM
mlttee endorsed the House plan
to increase the excess profits rate
10 % per cent, retaining the ex-
lsfng 80 per cent overall ceiling
with respect to corporate normal,
Surtax and excess profits taxes.
The committee also approved
TIE House action in reducing from
TO + per cent the invested cap
llal credit allowed corporations in
computing the excess profits tax,
III corporations with $1,000, 900 to
s-O'OOOOOO invested capital. Above
SiIVO0OOO, the senator's voted to
cut the credit from 6 to 5 per
cent, but declined to go along with
me House in a further reduction
- per cent in the case of firms
win more than 5000, 900, 900 invest
ed capital.
Adjustments Postponed
controversial adjustments in the
INDIVIDUAL income tax law were
postponed until tomorrow, to give
Tue treasury time to answe
enafges that it had made IAN I'M
l'lr and unWarranted attack upon
HouSe-approved device for inte-
slatlng the victory tax with the
.esuaf income levy. The charge
las leveled by Colin F st m,
t OIL staff of the joint commit
lee On taxation.
The House provided a minimum
me'ofy tax, the rate to be not less
u aa per cent of the net income
Wv 'l special exemptions amount
t e7eo 70 $500 for single persons and
{ nv, l0f married persons, with $500
II, each dependent.
hr -1e treasury suggested merely
FIVE avneflng the credit for dependents
W, r;Yll $3.50 to $500, and the mar
; I'M exemption from $1,000 to ST..
s soo leaving the $500 single per-
con exemption untouched. Siam
,vn'ended that under the Treas
r foS PHI Plan, "only 100000 of the H.
IVY, ,py,uoO victory tax payers are left
'p on, the tax rolls"
lhe Treasury" he declared,
r noSip;aEehtly preferred to defeat the
r,n nillnum tax than to make it
workable in tboir or+;,.,.+;o.. >,