Evening star., 1945-10-28
uxes
Continued From First Page.)

orally by reducing the combined
normal and surtax schedule from a
range of Is to 40 per cent, to scale
of 81 to SO per cent.
In return for accepting outright
repeal of the excess profits levy on
January 1, the House conferees won
the Senators over to the combined
normal and SurtaX rate schedule
of 81 to So per cent on corporations
below $4,000, with a rate of 38 in
stead of 40 per cent on corporations
with income of $4,000 or more.
In the first corporation bracket,
under $4,000, the rate becomes 81
instead of 25 per cent. Each bracket
goes down 4 per cent until the
$25,O00 level is reached, with the
rate at Is instead of % per cent.
Notch" Provision Planned.
Between $4,000 and $4,000 there
will be written into the bill what the
experts call notch" provision, to
make the approach more gradual to
the 38 per cent maximum rate,
which will apply to corporations at
or above the $4,000 mark.
Individuals on a pay-as-you-go
Withholding basis, will feel the tax
cut at the start of 1916, by finding
more money in their envelopes in
January. For corporations, how
ever, the reductions will not be re-
fected in lower payments until they
file their 1916 returns early in 1947.
Vandenberg Proposal Rejected.
The confereeS threw out a Senate
amendment by which Senator Van
denberg, Republican, of Michigan,
sought to give small corporations
some immediate relief from the
excess profits tax on 1945 earnings,
payable in March, 1916. He pro-
posed an exemption of not less
than $25,000, retroactive on 1945
earnings. 1t would have applied
only where the present fiat $4,000
exemption, plus the credit allowed
for average earnings or invested
capital, did not aggregate $25, 900.
AS the conferees signed the agree
ment, Senator Taft, Republican, of
Ohio, issued statement predicting
that this bill contains a much re-
lief as corporations can expect for
the next two or three years.
Corporations certainly cannot
look forward to any further reduc-
tion in 1947 or 1948," he said. ION
the other hand the whole problem of
excise taxes and individual income
taxes will be considered in another
tax bill early in 1916"
New Tax Bill to Be Considered.
Chairman George of the Senate
Finance Committee made no COM
ment on Senator Taft's prediction,
except to reiterate his expectation
that Congress will consider another
tax bill early next year, and that
it will be a comprehensive review of
the revenue laws.
Representative Knutson, Of Min
nesota, ranking Republican on the
House Ways and Means Committee
said future tax reduction will de-
pend on two factors, namely, "full
production and the elimination OF
wasteful spending by the admins
tration. If we can have full pro-
duction and economy in Govern.
ment, the American people can look
for further substantial reductions all
along the line"
The conference report will be sub
mitted to the House tomorrow ano
probably will be acted on in that
branch by Tuesday. Then it will &c
to the Senate for ratification. Lead
ers are anxious to get the bill on the
statute books about November l, sc
the Treasury would have two
months to prepare new withholding
tables and other forms.
Exceeds Treasury Proposal.
The bill gives more relief both to
individuals and corporations than
the Treasury proposed. Secretary
Vinson recommended that the re-