Evening star., 1944-01-13
Taxes
Continued From First Page.)

ties Of maintaining economic stabi-
lization. $50
THE time to impose high taxes is
now, when incomes are high and
goods are scarce"
If we do not pay in taxes all that
we can" Mr.. Roosevelt added, I'VE
shall be treating unfairly those who
must face the accumulated bill after
the war.
Incomes Up 40 Per Cent.
individual incomes will be ap-
proximately 40 per cent higher in
the calendar year 1914 than in l941,
after payment of all taxes, Federal,
State and local. Corporate profits,
after taxes, are running at an all
time high. -
I'm view of these facts, I must
urge upon the Congress the need for
revenue beyond that provided in the
bill now pending before the Senate" >"
With all but few amendments to
the tax bill proper disposed of yes
terday, leaders agreed that for all
practical purposes the Senate was
through with the major revenue
questions
Another Battle in Prospect.
There is another battle in pros
pect, however, when a series OF lib
eralizing amendments to the War
Contracts Renegotia ton Act are
taken up Monday as part of the
overall legislation. In his state of
the union message Tuesday the
President opposed changes in the
renegotiation laws.
Labor spokesmen have opposed the
financial report move vigorously, de-
scribing it as the opening wedge
in an effort to exact income taxes
from unions. which they contend
are nonprofit-making organizations
Senator Lucas. declaring he would
move to strike out the clause when
the Senate reconvenes Friday, said:
MY primary reason is that the
committee testimony shows that
some 100000 co-operatives, fra
ternal societies, labor organizations
and other such groups would be
compelled to file this year a long
winded form showing their assets
and liabilities, without any thought
of collecting any revenue at this
time.
People Harassed Enough"
ut seems to me the people OF the
country are harassed enough hav-
ing to fill out forms without adding
this one"
In opening Senate debate yesterday
Chairman George of the Finance
Committe indirectly took issue
with Mr.. Roosevelt's contention that
the bill docs not begin to meet"
the test Of a wartime tax bill
Senator George said bluntly:
ut is indeed realistic tax law
and will aid materially in reducing
the cost OF the war upon future gen.
|erations."
The chairman said that in his
opinion the point of diminishing re-
turns is at hand as far as individual
income taxes are concerned, and he
added that the committee was
agreed I'VE have about reached the
bottom of the barrel" unless new
sources Of revenue acceptable to the
Treasury are found. The Treasury
demanded $1o,5OO, 900 900 in new
taxes.
The Senate adopted amendments
wiping out House plan for integral
ing the Victory tax with the income
tax, and adopted its own scheme
which establishes the Victory tax as
straight per cent levy on income
above 1924 year.
There was no disagreement be-
tween the House and the Senate
Finance Committee on the repeal of
the earned income credit and dis
allowance of deductions for Federal
excise taxes paid AS a result, Senator
George said the entire matter OF
individual income taxes could be
considered settled, as far as the
Senate is concerned. However, a
joint conference committee eventual
ly must pass on items in disagree
ment between the two houses.
Likewise, no attempt has been
made in the Senate to change the
House provision raising the corporate
excess profits rate from 80 to 95 per
cent.
Most of the excise tax increases
have been approved or are not in
dispute. If finally adopted in the
form in which it now stands, the
bill will increase the tax on hard
liquor from $6 gallon to 50 and
impose 20 per cent rates on jewelry,
| furs, cabaret checks and other So
called luxury articles and services.
From an overall revenue stand
point, the bill would hit individual
income taxpayers for an additional
1854 900, 900 and corporations for an
extra $502, 700, 900, raise postal rates
by SOC, 900 900 and collect $1,011, ,10O.-
600 more than at present for excise
taxes.
Changes in the individual income
tax provisions will apply to the 1914
income. The new excises will 20
into effect on the first month which
begins at least 10 days after enact
ment OF the bill.