Evening star., 1944-05-28
Senate Action Nears
On Proposal 10 Slice
Cabaret Tax 10 10 Pct.
BY ]. A. O'LEARY.

The move to reduce the new
cabaret tax from 80 to 10 per cent
may come to a head in the Senate
this week when the bill to raise the
national debt limit from s210,0OO,-
100000 to 100000 100000 is taken
up.
The cabaret rate cut faces an up
hill fight, however, if offered as an
amendment to the debt limit bill
because some Senators in sympathy
with the purpose of the change
doubt the wisdom of attaching it
to that measure, which leaders are
anxious to pass in time for the
new War Loan drive.
Chairman George of the Senate
Finance Committee said yesterday
he will make no point against con-
sideration of the McCarran-Dow
cabaret rate cut, but said he had
hoped it could be added to some
other bill.
Senator Clark, Democrat, of Mis-
souri,, member of the Finance
Committee, took the same view.
Like Senator George, the Missourian
favors some reduction in the 80 per
cent rate, but said he is not in
favor of loading down" an ex-
tremely essential measure with con-
troversial issues.
George Favors 20 Per Cent.
Senator George indicated he
favors making the cabaret rate 20
per cent, as advocated by the Sen
ate when the last revenue bill was
being drafted The Senate also
proposed that members of the
armed forces be exempt from the
tax, but in conference the House
won its fight for a straight 80 per
cent. The old rate was per cent.
There is a good deal of feeling
over the country that the 80 per
cent tax is too high" said Senator
George, who added his belief that
it is working hardship on service
men. He pointed out that when
members of the armed forces get a
weekend leave they like to go
dancing in some community near
the camp, but they are not able to
pay 80 per cent tax.
"If it is desirable to close the
ordinary cabaret from any stand
point, that's one thing" Senator
George continued. But feel that.
as a revenue measure, the 80 per
cent rate will produce less"
House Hurdle Cited.
If the Senate adopts sorhe cut in
the cabaret rate, it would still have
to face House action. The House
Ways and Means Committee has
taken no action on a separate bill
to lower the rate, except to refer It
to the Treasury. If the House ad-
heres to it's stand of several months
ago for the 80 per cent rate, 1t is
probable the Senate would have to
yield to prevent delay in passing the
debt limit bill.
Senator George said there Is an
other revenue bill to be acted on at
this session, to extend the Sugar
Control Act, to which the cabaret
change also would be in order as an
amendment.
Meanwhile, there were some in
dications that the cabaret proposal
may give rise to suggested modifica-
ton of some other excise levies. For
example; one Senator, who preferred
not to be quoted by name, pointed
out that more persons are affected
by the increase in theater admission
taxes, which were doubled In the
recent law. The admission tax was
raised from cent for each 10 cents
admission to cent for each cents.
A conference committee may have
to be named to settle the new debt
limit, the House having voted to
stop at s240, 200, 600 900, while the
Senat Finance Committee approved
the administration figure of $780,
000, 900 900.