Evening star. [volume] (Washington, D.C.) 1854-1972, 1945-10-17
Flat 2O% TaxCut
Favored by Two
Business Groups
U. S. Chamber, NAM
Also Urge Repeal of
Excess Profits Levy
BY J. A. O'LEARY.

"A 1ldU ~ per C6Ht cut III 1I1Ql-
vidual taxes and repeal of the
excess profits levy were recon-
mended to the Senate Finance
Committee today by the United
States Chamber of Commerce
and the National Association of
Manufacturers.
The $500 900, 900 House bill pro-
vides varying degrees of relief for
individuals, and merely reduces the
excess profits tax from 85.5 to so
per cent for 1916, with repeal COM
ing in 1947.
The effect of the House measure
on individuals is to wipe out all
tax liability for 100000 persons
In the lower wage brackets, while
giving graduated percentages of re-
duction to the remainder. For
those above the $4,000 income
bracket, the House cut is 10 per
cent, Below that point the per-
centage reduction becomes greater.
Ask Normal Tax Repeal.
Meanwhile, two Republican mem
bers of the committee-Senator Taft
of Ohio and Millikin of Colorado
called for outright repeal of the
3 per cent normal tax on all individ-
ual earnings above $500, if the war
time excess profit tax is to be re-
pealed.
This would take 100000 low
income persons from the tax rolls,
which the House accomplished by
keeping the normal tax, but increaS-
ing the exemption.
The two Senators made known
their position in taking issue with
the Chamber of Commerce recon-
mendation that personal tax relief
take the form of a fiat percentage
cut all along the line.
Senator Millikin asserted that if
Congress is going to take off the
excess profits levy because it was
war measure, the same logic will
require repeal of the 8 per cent tax
on the lowest income brackets,
which likewise was a war measure.
Il see no justification for not re-
pealing the per cent normal tax"
Senator Taft joined in.
Urges 8-Billion Cut.
In presenting the NAM program,
H. E. Humphreys, jr., described the
pending tax bill as too little and
too late" to meet the requirements
of speedy reconversion, and called
for total cut of nearly $8,O00,-
100000.
The views of the Chamber of
Commerce were presented by Ellis
worth G. Alvord, chairman of its
Committee on Federal Finance, who
had a seven-point plan. In addi-
ton to repeal of excess profits and
a fiat percentage cut for individuals,
the chamber recommended:
AS much reduction in the cor
porate normal and surtax rate as
revenue requirements will permit.
(The House cut the combined cor
poration normal and surtax from a
range of Is to 40 per cent down to
81 to SO per cent?
Repeal next July of the capital
stock and declared value excess
profits tax, as proposed by the
House.
Reduction of the excise levies next
July as in the House bill. Mr.. AL
word, however, questioned the wis
dom of keeping the luggage tax at
10 per cent retail rate.
Freezing of the social security
payroll tax for ,oh-age insurance
at present rates of per cent each
on employer and employe for an
ether year, as in the House bill.
Repeal of the Renegotiation Act
as CT last December, or, in lieu of
that, provision to allow against re-
negotiable profits the expenses al
lowable for income tax purposes, ur|
to next December.
In favoring fiat reduction
across the board in individual taxes