Evening star., 1946-12-22
Promised G. O. P. Tax Cut
Meeting With Opposition
Slash in Income Levies Scanned for Budget Effect
and Actual Savings to Those in Low
Salary Brackets
By Raym ond p. Brandt

d p. Brandt
40 per cent. A 20 per cent tax cut
would mean only few dollars saw
ing, TOO small perhaps to have any
political effect.
There is one school Of political
thought, prevalent in the upper
brackets. that all persons should pay
a Federal income tax, no matter
how small. as q reminder that they
owe an obligation to the Govern.
ment.
Hidden Tax Argument.
This argument viii be heard in
ressional debates. The Gus
Iaka5y reply u that these low
ESnsoae earnerxsp spAsna percentage of
lSli6lf wages in hidden taxes, the ex-
else leyies which are really sales
.aax. As late - le3osa husbandsNith
M chfidren paldHpnly sl2 taxas u
IhiA annual moons vas $4,000. In'
FlS45 he paid $506, tliis year he viii
pay $3.50, and if the 20 per cent cut
goes through he would pay $304.
The figures used are based on per-
Icentage calculations and not on the
lower optional charges permitted for
incomes under 5000. The percent
age method is used here because the
optional plan does not apply to the
higher brackets.
These middle brackets were hit
hardest by wartime taxation and
comparatively few will receive less
benefit than the lower brackets re-
ceived this year and less than the
upper brackets would receive under
the 20 per cent reduction plan.
The $7,00o-a-year family paid $l2o
in taxes in 1889, $1,295 in 1945, will
pay $1,O45 thiseyear and 1886 If the
20 per cent cut goes through next
year. The $4,000 family paid $343
in 1889, $2,245 last year, $1,862 this
year and would pay $1.490 next year.
Benefits Increase.
As the brackets mount the dollar
benefit increases proportionately.
The $25, ,O00-a-year man paid
81, ,327 in 1885, $9,7o5 last year; $8,-
$40 this year and would pay $6,s18
next year. The $4,000 man paid
$8,621 to the Government in 1889,
$26,S65 last year, $24,111 this year
and would pay 1929 next year.
| The 100000 man paid high OF
$31 ,997 before the war, $68,565 dur
| ing the war, $62,301 last year and
would pay $49,841, or less than SO
per cent of his income next year.
The $5oo,oOo man paid 1903, ,56S in
1889, $442, ,985 last year, $406. 500 this
year, and would pay $325, ,28o next
year.
The administration has not yet
announced or even indicated the
Democratic tax plan. Secretary OF
the Treasury Snyder is on record
for maintenance Of present tax rates
as essential for a surplus with which
Ito reduce the national debt.
t Befofe the election, Treasury ex-
perts talked about raising personal
4 exemptions, to $1,000 for an indi-
vidual and $3.50 for wife. That
/ would benefit both married men and
bachelors and would relieve large
number Of present taxpayers from
4 future levies on income.
/ Community Propety Idea.
| Another plan under discussion now
lis TO apply community property con-
|cept, operative in nine States, to the
1entire Nation.
/ In all tax discussions, 1t is wise
Ito give more attention to the Senate
than the House spokesmen. Rep
lresentative Harold Knutson Of Min
lnesota, who will be the new chair
man Of the House Ways and Means
COMMITTEE, which writes the tax
bill, and Representative Joseph w.
Martin, jr., who is slated for Speaker,
have been the most vociferous for
a 90 per cent overall tax cut. Less
has been heard from Senators
Robert A. Taft OF Ohio and Eugene
ID. Millikin OF Colorado, who will
have the greatest power in the
Republics n-controlled Finance Conn
mittee, which rewrites what the
/ House has adopted.
i Printed throush special arrangement with
The 8. Louis ''''- ''.'sh,'