Evening star., 1943-11-20
T uxes
Continued From First Page.)

when 100000, 1000 of increased
taxes can be regarded as inconse-
quential, even in these days of as
Economical spending. The increase
represents So for every minute since
the dawn of the Christian era"
The Republicans said that in op-
posing the administrations program
and "in unanimously contributing to
its defeat in committee, we took the
position that tax increase OF this
magnitude would impose entirely
too great a burden on taxpayers gen.
orally
Fear End Of Middle Class.
They asserted that it would
threaten the liquidation of the
middle class in America. discourage
maximum production for the war
effort and undermine the ability Of
private enterprise to provide Jobs in
the postwar period for the tens of
millions Of persons now temporarily
engaged in war activities. both on
the battle fronts and the home
fronts"
In calling for curtailment of ex-
penditures, the minority declared.
I'VE believe that from now on war
expenditures should be examined
with more care by the Budget Bu-
reau and by Congress with a view
to eliminating all unnecessary out
lays and wasteful expenditures.
Even II a saving of only 10 per
cent could be made in the total war
program, it would result in lighten-
ing the future burden of American
taxpayers by approximately $35, ,000,-
000,0O0."
The report OF the full committee
declared the need for new Govern
ment revenues has apparently been
exaggerated"
Ask Proper Psychology"
The conclusion of the commit
tee" the members said, was that
maintenance by the Government of
the proper psychology, and freedom
from fear of imitation on the part
OF every consumer, is considerably
more important than the absorption
OF current excess buying power
through additional taxes.
The committee is firmly con-
vinced that the proper psychology
can be maintained only by strict
economy in governmental expendi-
lures through effective price con-
troll. rationing and wage control"
Included in the Republican re.
port was a recommendation for re-
vision of the whole Federal tax
structure, which, it said, 'like Topsy
just growed up" The report con-
tinued:
I'VE should develop as soon as
possible a long-range, integrated
wel-balanced, equitable and simpli-
ned scheme Of taxation, and we OF
the Republican minority propose to
90 all in our power to bring about
such a plan"
George Backs Reduction.
Chairman George Of the Senate
Finance Committee declared, mean
while, that the Senate would back
up the House committees action
IN slashing the Treasury's recon-
mendations, but he added that 1t
would attempt to simplify further
individual income tax returns.
He proposed elimination of the 6
per cent penalty now assessed when
a taxpayer makes an error above 20
per cent in estimating his tax under
the pay-as-you-go system.
The penalty was discussed in the
Ways and Means Committee, but
not changed, as some members con-
tended its elimination, would impair
operation Of the law as it affects
persons with incomes other than
from wages and salaries.
House Minority Leader Martin
predicted that the bill would be
passed by the House with little, if
any, change.
The forecast was made shortly
after the House Rules Committee
voted what some of its members
termed a gag" rule restricting
amendments when the measure
reaches the floor. Only amend
ments approved by the Ways and
Means Committee will be permitted.
Mr.. Martin predicted passage,
though he said there "are many
things about the bill don't like"
He did not enumerate thep.