Evening star., 1943-09-27
House Tax Framers
Disapprove Repeal oi
Renegotiation Law
BY the Associated Press,

BY the Associated PreSs.
The House Ways and Means
Committee voted today against
repeal of the renegotiation law
for recovery of excess profits"
in war contracts, and at the same
time threw into high gear it's
consideration of taxes with the
view to completing a new gen.
eral revenue law by January /.
While throwing out suggestions
that the renegotiation law be re-
pealed, the committee referred the
matter to a subcommittee for con-
sideration of important amend
ments suggested by industry.
In drive to speed consideration
Of the new general revenue act,
in response to an administration re-
quest for $4,000, 900 900 in addition
to the present annual collections of
S38, 900 100000, the taX-framing
body decided to hear no witnesses
on the subject of lotteries, COM
munity property, mandatory joint
returns and proposals for levies on
municipal and State bonds.
Hope for Bill in November.
However, Chairman Doughton
stressed this did not block study of
these subjects by the committee, in
executive session, explaining that
the body had sufficient evidence
without hearing new witnesses on
these issues, which in the past have
been time consuming.
Representative KnutSon, Republi-
can, of Minnesota, Republican
spokesman on the committee, said
it was hoped that the tax-drafting
group could submit new tax bill
to Congress the first week in No.
vember, and put bill on the
Presidents desk for him to sign
by January l"
The committee opens public hear
ings on the new general revenue
measure next Monday, and Mr..
+ KnutSon estimated the decision to
hear no witnesses on the four sub
| jects would shorten the hearings
| from two weeks to a month.
A vote was taken on renegotiation
after hearings that began Septem-
Der g. during which both the United
States Chamber of Commerce and
the National Association of Manu-
! facturers recommended that the
law be suspended or repealed and
i that the tax statutes be relied upon
| in the future for the recovery of
/ any excessive profits in war con-
| tracts.
Some representatives of industry,
during the hearings, suggested that
if the law was retained there should
be amendments to provide for re-
negotiation after taxes and to allow
reserves for postwar reconversion of
industry.
Will Study Suggestions.
These suggestions will be con-
sidered by the subcommittee, headed
by Representative Disney, Democrat,
Of Oklahoma, which will report back
to the full committee later this week.
Mr.. Knutson said he believed a ma
jority of the committee favored that
renegotiaticn be done after Federal
taxes have been collected.
The full committee will meet to-
morrow to study proposals for SIM
plification of income tax returns.
Meanwhile, there were indications
that the search for new revenue
would be accompanied by an increas-
ing demand for closer scrutiny of
Government expenditures.
Representatives Knutson and
Carlson, Republican, of Kansas.
committee members, expressed doubt
of the committees ability to find
means of any appreciable hike in
taxes and Mr.. Knutson reiterated a
statement that a close scrutiny of
Government expenditures should
accompany any new revenue con-
siderations.
The Treasury is expected to pre-
sent the administration tax pro-
poSalS when the hearings open.