Evening star., 1944-02-01
Both Houses Expected
1oComp|ete Action on
Tax Boosts Tomorrow
Conferees Reach Accord
On All Provisions of
New Revenue Measure
BY the Associated Press.

BY the Associated Press.
The new $2,315,800,O00 tax bill,
which is counted on to swell the
Governments total revenue to
more than $43. 500, 900, 900 a year,
went to legislative drafting ex-
perts for a final polishing today
before its ratification by House
and Senate.
AS approved last night by con-
ferees, the measure proposes to raise
more than billion dollars through
sharply increased excise taxes, ap-
proximately half a billion extra from
corporate excess profits taxes, where
the rate jumps from 80 to 95 pei
cent; approximately 1864 900 0o(
from individual income taxpayer!
and the balance from higher posta
rates.
Senator George, Democrat, O.
Georgia, head of the Senate con.
ferees, predicted the bill would be
called up and approved in both
chambers some time tomorrow.
In its sixth and final days work
on the long pending measure, the
conferees adjusted number of con-
tentious issues, including a series
of amendments to the War Con-
tracts Renegotiation Act.
Betting Tax Left to States.
In general, the changes tend to
modify the impact of renegotiation
on contractors.
The House conferees waged a fu-
tile, last-ditch action to tax pari-
mutuel betting, but the Senate
group, which included Majority
Leader Barkley of e-breeding
Kentucky, insisted that taxation of
racing be left to the States.
Into the bill. however, went such
new excise rates as these: Twenty
per cent sales taxes on. furs, jewelry
cosmetics, toilet articles, luggage and
Women's handbags; 80 per cent on
night club and cabaret checks: ss
a gallon on 100-proof whisky Otis
now So; So instead of $6 per barrel
on beer; a penny on each nickel OF
admittance to movies, ball games and
other amusements: is per cent on
railroad, ship, plane and bus tickets:
Is per cent on local telephone serv-
ice, and many others.
Alrmail postage goes up from 6
cents an ounce to 8; locally delivered
letters will cost 3 cents instead of
2; money order, registered mail fees
and other special postage charges
will be higher.
Earned Income Credit Out.
If the bill becomes law by Febru-
ary 19, the new excise rates will take
effect March l. The postal increases
become effective 80 days after enact
ment.
Individual income taxpayers no
longer will get the benefit of a 10
per cent earned income credit in
computing their normal tax. Neither
will they be allowed to deduct Fed
eral excise taxes they have paid.
The Victory tax becomes a straight
3 per cent on every dollar of in
come over 1924 a year, regardless of
family status. The increase in in
come taxes is 1864 100000 annually.
But the income tax changes will
operate only in the 1914 tax year
and so will not affect computations
on the 1943 returns due March Is.
In an effort to clear away some
OF the headaches of the income tax
In future years, leading members of
the tax-writing committees of both
houses have announced their inten-
ton of simplifying the tax struc-
ture, literally hodgepodge accu-
mutation of more than 80 years.
No Big Increases in Sight.
Despite the insistence of the White
House and Treasury for still heavier
taxes (the present bill falls far short
of the administrations S10,500, ,000,- :
600 requesO responsible lawmakers
see no chance for sharply increased
rates in 1914.
Employees and employers subject
to the social security payroll tax
won't be called on to pay an in
creased rate which would have taken
effect this year under previous laws
Against President Roosevelt's ex-
pressed wish, Congress voted to
freeze the payroll tax at per cent
on the theory that the reserve fund
is adequate to meet any possible
need.
Over the vigorous opposition OF
labor leaders, both houses approved
a section requiring labor unions
farm co-operatives and other such
organizations not subject to the in
come tax to file international
financial returns annually with the
Treasury.
Labor spokesmel protested that
fsee TAXES ase A-ls9