The Waterbury Democrat., 1945-10-01
Cite Excess Profit, Other Taxes
 Vinson Presents
 Administrotion's
 Plan 10 congEsss;
 Benefit Millions
 of Taxpayers
.f toxpoyeTs
 By LYLE c. WILSON


 Washington, Oct. 1(uR9 The Administration today handed Congress a three point reconversion tax relief program providing for repeal of the three per cent normal tax on individuals, repeal oE the excess profits tax on bus mess and the lifting, effec- tive on next July l, of the wartime excise taxes.
 Secretary of Treasury Fred M. Vinson presented the pro- gram to the House Ways and Means Committee. He estl mated that lifting of the three wartime levies would cost the treasury $5, ,167. .00l), 7 900 next year and recon. mended that repeal Of the normal and excess profll4 taxes be made effective uSxt Jan. 1.
 VlnsonS Warning
 Vinson warned the consf1la that the financial burdens os WaN do not end easily or quickly.
 War and its aftermath win keen federal expenditures high faN months to coaxe.p he aaid. Vinson told the oonamittao fIla drop in national income af4NH would cost the treasury sioefIV * 000, ,0O0, 900 h lel0, axplAinAnN NH under present tMx rates fGtAs liabilities for next year WollH about ca GOO COO. xle asaggegte6 taak rHneal N$ normal tax fIfHe&iFa I would bs Yen eulsiI |a 4ss reducing taxes on zndiEldini F revenue loss rom thia. h6 z1I{ would ha 2,oa6, ,0O0. 900.
 Xingon pointed out that Che n0k nial tax now imposes an lEoon14 I1FN on about l2,0O0 900 families nxeza from the gllrtax, who would bs 1e& heved of all income tax liability Iz his recommendation shouia "
 flor example," he said, Tn sho case of e married taxpayer Wi'M 5000 of net income before p9f& eonal exemption, the repeal of tAe two dependent children. roeelNIn& normal tax would reduce his ta* from e2Ts to e200, Q reduction 4f 976. This is very substantiaI KHiA6R and goes to the kind Of taxpagsIs need it most"
 Miadle- Glass
 Vlnson asserted that addIIzonAz relief, particularly heipful to .a#e and middle income aroups could N3 given by setting an effective &1I& for reduction of the eEnergancy ENA else taxes adopted in io4s. U4aeN present law, those taxes would Ao& end until Six months after Consz4 or tho President proclaimed q te imitation Of hostilities.
 Recommending that the eNsiH66 revert to ioz2 levels next Juiy I. Vinson estimated his proposal NeEI|a cost the treasury e647, ,000. .0nu MEH4 year. The 1888 law imposed EilaFH|t increased excises on such z1uIzzE ties and services as luRaaN& s metics, 9tirss SewoiFy, Hquot. t<zk' portatlcn and telephone saETios.
 vlnsofi estimated tho c1st oE H1 pealiag the eycess profits taK 92,660. !. 000, 900 900. Ire eRc6s8 NHN tax, originally adopted in 1D44. lN' posed 6 e9 per cent levy en &Hs nal profits but provided toN per cent poetWar refund. fI the effective rate n8.b Der CNfA.
 'Thc 6ase asainst tho exe0Hs H& fits tax for tDao gees beVoase fact that it la primarily s WHE control,A llo aald Tt 6 AlHH Obstacie Co tha6 recoaVeHs'0N expansion og business which afs necessary for . hlgh loVal 0f ployment and income IA Too Much Rlgk
 The testimony Of blissneaeNl that they are unable bo take risk Of zuII peacetinae blfaIN48 e4 i,ansion until this tax has b8Hn s mSysa ...'. q TnsF .l,.s.s.sI.s asssisE'cs | ne examine tho nature of the profits tax and observo tA1 EsF character Of its Ineasueeinezat Az cess prcglts."
 While fecosnfnendina xenee| Hz 1.I& ta4, vins0n gugsoDted Ahat Una called carry back pTuVia.eH N ifi effect an additional year. M purpose Of that pfoviaiQn NA permit business firms 0 1Efsot induced costs incurred eE.4 war.
 Vinson's Recommendation fbf peal Of tho normal i&4 m approximately greater Ref'#& # tax brackets, cCnfllcte6 #I'H publican -hackea prcposasa &t DOT cent cut "acEoa9 tan H4N nll tax brackets.
 Vlnaon recommended 5aA1 grens hold tax redtcllanN N than eg0O0. .o00 900. ArkN that his own estimates that figure. he Oppressed the proposed roduetI1N4 M affect the economy na 4 overall treasury loaa Na'9# O00. .000.011 iimlt
 uEans KlameaINI4 M
 1Ea eaia lhA foFilHs tlon taN program Into laW Hot |afeF '|