Evening star., 1944-02-22
T uxes
Continued From First Page.)

States as a whole, with adequate
revenue for Wartime needs, to- pro-
vide fiscal support for the stabiliza-
ton program, to hold firm against
the tide of special privileges and to
achieve real simplicity for millions
OF small income taxpayers. In the
interest Of strengthening the home
front, in the interest of speeding the
day of victory, I urge the earliest
possible action
"It has been suggested by some
that 1 should give my approval on
this bill on the ground that having
asked the Congress for a loaf of
bread to take care of this war for
the sake of this and succeeding
generations I should be content
with small piece of crust the
President said. Il might have done
SO if had not noted that the small
piece of crust contained so many
eXtraneous and inedible materials" !"
In yetoing the bill, Mr.. Roosevelt
said he regarded his action as in
the public interest. He noted that
1t 'purports' to provide S2,l00 ,000.-
900 in new revenues and grants re-
lief from existing taxes which would
cost at least S15O0000O0 to the
Treasury. 1T cancels out an in
crease in the social security tax,
he said, which would yield 81 .lOO,-
100000.
Congressional sources had es.
timateu the bill would provide
;s2,315 100000 a year,
Time ,Opportune for Increase.
The Social Security freeze, the
President said, would come at a
time which industry and labor can
best adjust themselves to the in
creases.
He said it seemed unwise to pro-
vide for termination of war con-
tract renegotiation authority next
December 81. as the bill would do.
More experience is needed, he said,
to determine when time limit
should be fixed.
He criticized as "inept" a provi-
sion for appeals to the Tax Court.
declaring The court did not ave
personnel to handle the load.
Meanwhile. there were these tax
Developments.
l. Reports circulated that join
ing in the, move to- override the
President may be Chairman Dough-
ton of the House Ways and Means
Committee, Chairman George of
the Senate Finance Committee, and
even Senate Majority Leader Bark
ley. Senator George denied he
was organizing movement to over
ride the vetoD
2. The House Republican Steering
Committee prepared to throw the
partys whole strength into an ef-
fort to override the veto.
3. Senator George predicted that
if the House overrides, then the
Senate will follow suit.
Knutson Disputes Rayburn Claim.
However, Speaker Rayburn said
he expected the House to sustain
the President. Representative Knut-
son of Minnesota, ways and means
Republican leader, disputed the
Speaker, declaring: eve will over
ride"
Old-timers on Capitol Hill searched
back in memory but could not recall
a precedent for the President veto-
ing a revenue bill. Nor could they
remember the minority party taking
over responsibility for a tax meas
ure, as would be the case if the
Republicans finally go down the
line to override he President.
If Mr.. Roosevelt is sustained, all
tax authorities seem agreed, there
will be no new revenue legislation
in 1914.
The present bill makes no sub
stantial overall increases in individ-
ual or corporation income taxes.
However, if the veto is sustained:
l. The liquor tax will remain at
Sc gallon instead of jumping to
SO. Other excises on so-called lux
uries, such as furs and jewelry, will
not increase.
Income Credit Would Stand.
2. Income taxpayers will continue
to use the earned income credit and
to deduct amounts paid in excise, in
computing their individual income
taxes. These provisions are erased
in the new bill.
3. Postal rates will remain the
same, instead of jumping in several
categories.
4. The corporation excess profit
tax will stay at 80 per cent. The
new law would put it at IS per cent.
5. The social security tax will
go to 2 per cent.