Evening star., 1944-01-12
Leaders in Congress
Cool 10 RooseveIt's
Plea for Tax Raise
President Is Expected
To Use Stronger Words
In His Budget Message
By the Associated Press.

President Roosevelt's implied
demand for sharply increased
taxes was all but shrugged off
today by Congress which had
heard-and rejected-a series of
similar suggestions from the
Treasury.
The first move is up to the Senate,
which began work yesterday on the
50 ,275 800 900 tax increase bill, which
the President regards as inadequate,
by voting to freeze the social secur-
| ity pay roll tax throughout 1914 at
the current rate of l per cent on
employer and employe.
A realistic tax law" led off the
Presidents legislative recommended
tions in his annual message yester-
day on the state of the Union. He
contended the pending bill docs not
begin to meet" the test of taxing all
unreasonable profits and reducing
the ultimate cost of the war.
May Restate Demand.
Members of Congress generally
interpreted that phrase as meaning
that the Chief Executive wants all
or most of the S10500, ,000, 900 addi-
tional revenue repeatedly sought
by Secretary of the Treasury Nor
genthau.
That belief was shared in some
Treasury quarters which predicted
that Mr.. Roosevelt would restate
his demands in even more vigorous
language when he submits his
budget message tomorrow.
Most of the lawmakers didn't
want to talk for publication. They
just shook their heads when asked
if there was any chance of going
much beyond the $4,000 900 mark
in an election year.
Representative Knutson, Repub-
lican, of Minnesota, however, read
into Mr.. Roosevelt's message a re-
quest for another general tax meas
ure this year and gave notice that
Republicans would oppose higher
rates.
The Minnesotan is House Repub-
lican leader on tax legislation.
Sees Republican Opposition.
Mr.. Knutson said Republicans
would oppose another general tax
bill in 1914, because the Treasury,
which speaks for the White House,
has taken the position that future
increases in income taxes must come
from the lower brackets"
In speaking of the desirability OF
taxing all unreasonable profits, both
individual and corporate, Mr.. Knut-
son said the president apparently
has forgotten that present surtax
rates reach maximum of 80 per
cent and that war profits of corpora
tions are now taxed at a rate of 90
per cent, which Congress proposes
in the pending bill to increase to 95
per cent. Incidentally, the Treas
ury Department, speaking for the
White House, did not recommend
an increase in the excess profits tax
Il have repeatedly brought out
that of the 101a billions of new
taxes requested by the administra-
tion, 61a billions would come from
increases in the personal income
tax on the great mass of taxpayers
in the lower brackets, for whom the
President in another portion of his
message expresses great solicitude-
particularly those who are on fixed
incomes
The Republication members of
the Ways and Means Committee for
months have taken the position that
income taxes are now as high as the
people can possibly pay"
Gould Go Too High"
Chairman George of the Senate
Finance Committee declined to COM
ment directly on the Presidents
stand. but he told newspapermen
that he was convinced taxes could
go too high.
{. Il believe with Chairman Dough-
ton OF the Ways and Means Com
mittee," he said, that you can shear
a sheep for years, but you can skin
it only once"
Senator George, also chairman OF
the Senate's Postwar Planning Com
mittee, said he wanted to see all
potential employers with enough
meat left on their bones to provide
jobs for the returning soldiers and
those who will be let out Of war
Jobs"
/ Mr.. Roosevelt's plea for continu-
alton of the war contracts renego-
/ tiation law met happy response
from Senators Walsh Of MasSachu.
| (see TAXES, Page A-60