Evening star., 1944-03-13
Election Move Seen
In Naming Of COP
Committee on Taxes
By the Associated Press.

Creation of a 25-member Re-
publican committee on postwar
taxation was accepted in politi-
cal quarters here today as the
preliminary step toward drawing
the 1914 COP plank on taxes.
The committee was announced
last night by House Republican
Leader Martin, who termed the
present tax system "hopelessly i'm
possible" basis for postwar levies.
Representative Reed of New York
? heads the group-all members oi
the House.
The minority party took the in
ttiative on formal postwar tax stu
dies following suggestion by Ber-
nard M. Baruch, in his recent re-
port to the President, that Con-
gress enact now revenue laws to be
put into effect at the close of the
war.
Uncertainties Stressed.
Some congressional fiscal leaders
took the view that postwar tax pol
Icy cannot be drawn at this time.
because Of uncertainties as to the
future over all economy.
However, both Republicans and
Democrats have shown by public
statements an active concern for
postwar revenue problems, with the
trend Of thought indicated by these
developments:
l. Chairman George of the SEN
ate Finance Committee and Sen
ator Byrd, Democrat, of Virginia
declared the excess profits tax on
corporations should be repealed
when hostilities end, to encourage
development of free enterprise.
2. Senators George and Vanden-
berg, Republican, of Michigan issued
statements hoNling out the prospect
OF postwar corporation tax reduc-
tions to help clear the way for busi-
ness to provide jobs for returning
servicemen and workers.
Baruch Fears Monopoly.
8. Mr.. Baruch said in his report
Nothing will do more to make for
monopoly or to deter the creation
OF new enterprise than excessively
high taxes"
4. Wendell Willkie, 1910 Repub-
ncan presidential nominee, called
for higher taxes now to make the
load lighter after the war.
5. Beardsley Ruml, chairman of
the Federal Reserve Bank of New
York and author of the widely
publicized Ruml pay-as-you-go plan,
advocated a postwar Federal fiscal
policy calling for a reduction of
tax rates, including those on indi-
vidual incomes.
6. Republican members of the
tax-framing House Ways and Means
Committee issued a statement de-
manding retrenchments in wartime
Federal spending and Chairman
Cannon OF the Appropriations Com
mittee called for a Tightening of
Congress hold on the Federal purse
strings with the closest scrutiny
possible over the expenditure of
every cent of the taxpayers money"
Senator Vandenberg described as
Inevitable" the expansion by Con-
gress of social security coverage and
an increase in payroll taxes on en-
ployers and employees. The Mich
igan Republican Is most responsible
for Congress action in three times
postponing an otherwise automatic
Increase in payroll taxes from / to
per cent each on employees and
Despite any program of economy.
ZONE authorities believe that tax
payers will be called upon for s25,-
poe, 600 900 or more annually for
several years after the war, to run
the Government. service the huge
debt and readjust the economy to
peacetime production. This figure
Is more than twice any prewar tax
bill. Collections now are running at
about $43, ,00o, 900 900.
Meanwhile, the Ways and Means
Committee went about the work of
simplifying the tax laws already on
the statute books