Evening star., 1944-05-07
StreamIined Taxes
To Spread 10 States,
George Predicts
By J. A, O'LEARY.


A movement to simplify State
income tax laws may grow out
of passage by Congress of the
bill streamlining Federal tax
procedure, Chairman George of
the Senate Finance Committee
predicted yesterday.
The Senate committee starts work
at 10 am. tomorrow, and hopes to
report out by the end of the week,
the Federal simplification measure,
which coasted through the House
Friday, 358 to 0.
Under 1t 30,000,000 persons will be
relieved of filing returns. This is
accomplished by changing the with
holding tax to cover the full tax
obligation of all wage earners up to
5000. except for few groups not
subject to withholding, such as farm
workers.
When this plan becomes law, Sem
ator George said, the demand for
sinplification of State income tax
procedures will be very strong from
taxpayers whose States have COM
plicated systems"
ID. c. Form Already Simple.
Approximately two-thirds of the
States and the District of Colum-
bia have separate income tax laws
for local revenue needs, but, in the
case of the District, Assessor Ed
ward A. Dent said last night, the
form being used here is about as
simple as it could be made for per-
sons earning salaries or commits
sions up to $4,000.
"For the vast majority, our form
Is simple" Mr.. Dent added.
Senator George also said he does
not expect any material Senate
changes in the House-approved
Federal bill. The committee will
devote tomorrow's session to getting
information On the bill from the
Congressional and Treasury tax ex-
perts.
There may be request for a
hearing, Senator George said, from
charitable groups on the effect of
the House provision allowing an
automatic fiat 10 per cent deduction
to cover interest, taxes and contri-
buttons for those who elect not to
file a return.
Hearing Will Be Granted.
If such a request Is made, a
hearing will be granted, but SEN
ator George said he did not think
1t would take long, because the
committee worked on that question
when the short form was first con-
sidered.
The House bill still allows tax
payer credit for charitable con-
tributions up to Is per cent of ad-
justed gross income, provided he
exercises the option of filing a re-
turn, giving detailed information.
On the question of whether ef-
forts will be made later by the
States to simplify their income
taxes. one expert pointed out yes
terday that the Victory tax was
one Of the main factors that COM
plcated the current Federal income |
return, because it necessitated two
separate columns of arithmetic. He.
said that, so far as he knew, tf1ere1
was no comparable complication in
State procedure.
The approximately 100000 per-
sons, now paying the Victory tax,
whose earnings are not sufficient |
to require. any other income tax, will
be kept on the tax rolls at rates
about the same as the old Vic.
tory tax.
No Change Seen in Cabaret Tax.
Although there have been COM
plants about the new 80 per cent
cabaret tax that became effective
recently, Senator George said he
did not believe any change in that
tax should be considered in this
bill
He pointed out that the Senate
advocated 20 per cent rate on
cabarets, but the House insisted on
the 80 per cent rate in conference.
If change is desired, Senator
George suggested that a separate
resolution be taken up first in the
House committee.
Although the Finance Committee
expects to report out the simplif-
cation bill this week, it was not Ger
tain when the Senate will take it
up, Extension of the Lease-Lend
Act is slated for Senate passage to-
morrow, after which leaders have
agreed to move for consideration of
the poll-tax repeal bill Tuesday.
With Southern Senators ready to
fllibuster against it, the poll tax
measure may keep the Senate occu-
pied, at least for the remainder of
the week.