Evening star., 1943-10-03
Clio, Railway Union
Ask Salary Ceiling
As Part Of Tax Bill
1y the Associated Press.

1y the Associated Press.
A $25,000 ceiling, after taxes
on individual incomes was de-
manded as a part of the new
revenue bill last night by the
Congress Of Industrial Organiza-
tions and the Brotherhood OF
Railroad Trainmen with the sup
port OF three other organized
groups.
That issue was injected into the
prospective tax battle as evidence
accumulated that bipartisan con-
eressional bloc will make deter
mined effort to roll back the admin
astration's revenue program, reported
70 contemplate $10,650 900 900 in new
taxes.
In advance Of Secretary of the
Treasury Morgenthau's formal pre-
sentation of the administration
plans to the House Ways and Means
Committee tomorrow, Capitol Hill
heard expressions Of concern for the
Nations little man." demands for
closer scrutiny of Government
spending and pleas for protection of
free enterprise.
Representative Robertson, Demo-
crat, Of Virginia, a committee men,
Der, warned against "liquidation' of
the middle-class taxpayers and
against an increase in corporation
taxes that would tend to "dry up
venture capital and stifle a system
OF free enterprise"
COP to Demand Economy.
Republicans let it be known they
will insist on coupling a program of
'Government economy" with anv
rise in taxes.
Leading lawmakers said they rec
ognlzed that needs OF war REQUIRE
all the revenue possible without
drying up" tax sources. but some
could see prospects of raising only
approximately $4,000 900 900 to add
TO the present annual collection
rate of around s38,0oO,0 900 900.
Joining with the CIO and the
tralnmen IN offering tax program
were the National Farmers Union,
League of Women Shoppers and
the National Lawyers Guild. In
addition to $4,000 limit on in
eome-President Roosevelt ordered
such a ceiling on salaries last year
but Congress lifted it-thev asked
changes to lower taxes on small
incomes while increasing them on
business and middle and higher in
comes.
Oppose Sales Tax.
ASKING repeal of the Victory tax.
the groups opposed a sales tax and
proposed that all profits above to
per cent of invested capital be
taxed as excess profits.
Also asked were boost from $500
to $3.50 in individual exemption,
from $1,000 to $500 in the exemp-
ton for a married couple. and from
$3.50 to $400 in that for each child.
Mandatory joint returns by hus-
band and wife were urged.
The TreaSury's program was re-
ported 10 embrace a proposal for
graduated withholding levy I'D
70 80 per cent on wages. and salaries,
hike in the corporation income tax
from 40 to so per cent. and higher
excise levies on liquor, tobacco and
some other so-called luxury" items.
II is also understood to contemplate
postwar tax refunds In cash, or at
higher rate, in Government in
surance or annuities.
Robertson Hits Plan.
Mr.. Robertson, In discussing the
proposal to raise the corpora ton
rate. said:
The great ma jority of holders Of
corporate shares have net taxable
incomes Of less than $4,000. They
constitute the overwhelming ma ior-
1tv Of wage and salary earners and
the group from whom savings for
corporate investment must come.
To tax the earnings of that group
70 the point where they can realize
nothing above normal return upon
= successful investment while shoul-
derlng the full loss of an unsuccess-
ful one would dry up venture capital
ana stlfle taxes, he declared:
If we attempt to impose. as some
have suggested. an additional S6 OOO.-
100000 Of income taxes it will repre-
sent sharp increase for all and
about Is per cent increase for that
large and fine group of home owners
and local community supporters
With taxable incomes ranking from
$4,000 to s5.000-in other words.
program that may liquidate the So
called middle class, which is the
backbone of any Nation"
Taber Prepares Report.
Representative Taber, Republican
OF New York is preparing a report
en- money he believes that can be
saved through Government econ
nmv. He pointed out yesterday that
; war expenditures this year, at the
! present rate. would amount to about
/, s90000,0O00 900 instead of the s97.-
} 000000,000 estimate in President
! Roosevelt's last budget message
representing a saving of $1,000
! oO0 900.
! Representative Knutson. Repub-
! lican, of Minnesota plans to answer
! the Treasury's proposal in a state
ment Tuesday. This may embrace
/; the attitude of a ma ajority of Re-
, publlcans toward new tax legislation.
OPA Rules Tonst Must