Milford chronicle., 1945-10-19
Luxury Tax Cut
By July | Opposed
In Senate Study
CONTINUED from FIRST Page


ducr rrycuuc by >535"u"""u mkt
year
The reduction would be double
that figure in l@47 since the lower
taxes would apply tor III" tuil year
as compared with only thc iast six
months OF l"4G.
In general the proposed roduc-
tions would take the taxes back 10
1912 rates. Wipiu4 out increases
made in l943 on beverage alcohoi.
toilet preparations. jcwcIry lug
gage. telephone service. transport
tation. electric light bulbs and
club dues.
House Measure Hit
Ninson urged the committee to
substitute the TrcaSurY's 5 program
OF business and individual income
taxes for that approved by tho
House The latter program cuts
taxes deeper than the Treasury
recommended.
Under questioning by Senator
Byrd uD-NuJ. the Treasury head
said it was estimated that the de-
ticit in the fiscal year ending July
/. l947. would be $5.unu 900, ,ono to
$4,000, GOO .0u0.
That is a terribly rough csti-
mate Ninson said but added that
if the forecast proved correct tn,
country would be pretty well
along the road" toward Il balanced
budget in the next year.
Ninson was the first witness a>
the Senate group began three day.
OF hearings on tax legislation II,
goal is final enactment by NoveM
Der ! OF Il measure easing some o
the wartime tax burden.
Two Points Criticized
The Treasury sccretury's cIiti
cism Of the House bin rcvolyc,
about two principal contentious:
l. 1t makes tax reductions lar
ger than we can afford at thi
time" 1t would reduce taxes 50.
l90.0oo.UO0 in 1916 and $7.252.o .ooo,
600 in 1917 The Treasury pro
gram contemplales cuts OF $3l13.
000,000 in 1916 and $5,tNl.0U0.oo
in l947
>. 1t fails 10 repeal the rXcrs
profits tax entirely ON January
Ninson said he considered the Ia
"A particularly important ohstucl
to business expansion
The overall impact which thi
tax is likely to have on busines
planning as we'll as business profit
, constitutes Il serious threat to on
: postwar employment obiectiy"s
! he declared.
>. Tn" House measure provides fC
, a 80 per cont reduction III the {,
cess profits tax. effective Janual
:. /, 1916. and its repeal the follow
; ing January / 1t also would 7,
: duce the corporate surtaX rate fol
percentage points on January
1916.
= This is estimated TO reduce bus
ness taxes N,0Oo.Uo0 next We;
compared with $2.555. COO, 900 viii,
would result from Ninson's pr
-
! mated reduction in business tax
u under the House bill would elm
to $3.4l4 900 900.
Termed Curb On Expansion
!" Developing his contention tn
continuing the excess profits 4
would interfere with employmcl
-. Vimsou said businessmen advis
:, they could not take the risk
mf full peacetimc business, eXpansi
~. until this tax has been removed
of "Clcarly, the repeal of the exc,
profits tax will stimulate prodI
% ton. he said. "TOday we are st;
of we'd for new houses. new cars II,
lt radios and the like. The best {
ne Tense against the use Of our ";
nd tim" savings to bid up prices
these scarce items is to remove
of scarcity.
o. Comments and questions in
,e- Gated, however, that the Sen
p- group is divided on that point.
lid Senator Barklcy CD-kyD ;,
ir- grsted at one point that reno
OF the tax might make it more {
re- ticult to hold prices in line, if
le- price control program is enc
he next July |. The price control !
Ia expires on that date.
why pick out the excess pro
IN tax to repeal in entirety" Scna
me- COnnally demanded.
use When Ninson said that of all
III taxes il seemed most truly
impeachment to rec0nverSiOn." G.
nally remarked he did not see "
corporation with high incu
should not pay higher rate II
one with lower income.