The Ypsilanti daily press. (Ypsilanti, Mich.) 1928-1962, 1945-05-17
Observations
Capitol Observers
See Little Hope of
Quick Tax Cut
BY HELEN ESSARY

WORD is BEING CIRCULATED
around the Capitol that there will
be q night over any reduction in
tax rates. either on individuals or
corporations, until Japan is defeat
ed.
Secretary OF the Treasury Nor
genthau and tax leaders in Con
gress are said TO have agreed that
the defcit financing necessary 10
Eubdue Japan will be so large that
any scaling down Of rates would
be practically out OF the question.
This goes for income taxes on
individuals and corporations ana
excess profits taxes on corpora
tions.
However, the Congressional joint
committee on internal revene taxa
ton is recommending immediate
changes in corporation tax provl-
sions without reduction Of existing
tax rates. These are designed 10
increase the supply of ready cash
in the hands OF business concerns
for reconyersion purposes. Tax re-
funds would be speeded up; excess
profits credit would be made avail
able TO corporations Immediately
and they would be Civ back part
OF their wartime tax payments II
they suffered losses resulting from
war production cutbacks.
NOW THAT GERMANY has sur
rendered. Washington is watching
with keen interest the work OF the
Army Air Forces-particularly the
B.29 Superfortress bombers-to de-
termine Just how long Japan VIII
last
Observers recall how the air
forces laid the groundwork for the
swift Allied offensives in France
after D-Day. Now Army experts
are analyzing every heavy bomber
raid on Japan to determine the
full extent OF damage TO Japan's
vital industries With Germany
out of the war. the air forces can
now bring to bear on the hippo
pese homeland immeasurably larg-
er fleets than ever SCARED over the
Reich.
THE GOVERNMENT EXPECTS
that many OF the consumer durable
goods -refrigerators. stoves, etc,
which went of the market after
Pearl Harbor-will reappear before
long at no increase in prices.
That's the objective OF the OPAs
reconvefsioR pricing program. But
, X ssu': ssss@'S >;hst .sry N'g>s vices
will be. higher than six TO rs per
cent over their former levels. A
price increase for automobiles for
example, should be held TO six per
cent so that a car formerly cost
ing $1,000 would cost only $50
more than before the war, OPA
officials declare.
ALONG WITH MENTAL CASU-
ALTIES on the war fronts is the
sad fact that mental diseases
among civilians are on the In
crease. About 1858 out OF every
100000 patients in hospitals are
mental patients, according to the
Census bureau.
BEST BET is THAT THE Unit
ed States will not intervene in the
future disposal of Trieste and
Fiume. Adristic ports which have
figured turbulently in Europe's his
tory. Under arrangements made
as early as Casablanca, this coun-
try agreed that its interest did not
extend beyond the middle of the
Adriatic. Too, the ports are now
Italian-both may go TO Yugosla-
via since Moscow will insist on
their being in hands friendly to
the Soviet government.
PRESIDENT TRUMAN may be
forced TO make a personal plea TO
members OF his party in Congress
TO save the administrators reel
procal trade program from defeat
or emasculation.
The threatened detection OF three
Democrats on the House ways and
means committee endangers the
Doughton bill to extend the reel
procal trade agreemenst act until
June u. 1873, and authorize furth-
er tariff reductions. II was felt
that only personal appeal for sup.
port from the President could save
the bill from defeat in committee.