Evening star., 1946-02-25
Doughton and George
See No Reason 10 Cut
Luxury Tax This Year
By the Associated Press

High wartime excise taxes on
luxury goods" will be continued at
least through this year, in the opin-
ion of the two men whose views 90
far toward shaping governmental
taxing policies--Chairman Doughton
OF the House Ways and Means Com
mittee and Chairman George Of the
Senate Finance Committee.
Their conclusions were made
known yesterday as the Treasury
reported that the levy on alcoholic
beverage had yielded a record $2,-
70,000 900 last year-or more than
5 cents of every dollar collected.
Confronted with a bill by Rep
resentative Knutson of Minnesota,
ranking minority member of the
Ways and Means Committee, to cut
excise taxes to their 1912 levels on
July l, Mr.. Doughton said he per-
sonally could see mo use in the
world for prospective buyers to
hold back on purchase of furs, sill
verware, luggage and jewelry, in the
hope OF a tax cut in mid-year.
George Opposes Cut.
Senator George said he could see
no use for action at this time" on
revising the excise list.
"At time like this, with the Ma
tion's debt like it is, I do not be-
lieve the people are enthusiastic
for a reduction in the taxes on such
things as liquor and furs,' Mr..
Doughton said. People have more
money now than they ever had"
Senator George said Il don't know
but what the whole excise list should
be revised, but I can see no use in
it at this time"
The Knutson bill would slash the
tax on liquor from SO a gallon to Sc,
cut down the levy on jewelry, lug
gage, furs and cosmetics at retail
from 20 per cent to 10 per cent, and
bring about reductions also on ad-
missions, cabarets, dues or men,
bership fees, electric light bulbs and
tubes, telephone local and long dis
tance calls, telegraph and transpor-
tation of persons.
Would Boost Production.
In introducing the bill, Mr.. Knut-
son argued that it would mean
greater production, greater pur-
chasing and more employment. "
The proposed cut would involve an
annual revenue of approximately
$500 900, 900.
In making public the returns on
the beverage taxes, the Treasury
said the l945 take was S286, 500 900
over 1914, a rise of 10 per cent.
While this indicated rising con-
sumption as we'll as production, it
was partly attributable to greater
full-year effects of increases in ex-
else tax rates Ito SO from Sc a GAL
Ion for whisky. gin and brandy and
to So from ST barrel for beer
effected April /, 1914.
Biggest single source of tax reve-
nue-more than half the 1945 total
was the excise tax collected from
American distillers, who were busy
once more after a long wartime
shutdown. 1t topped $l,415 500 900
and was more than nine times as
great as the $l6O, 13O, 900 collected on
imported spirits.
1855, 100000 From Beer.
Beer, output of which nearly
doubled during the war, was next,
with its 1945 tax yield foaming up
to 1856, 100000.
Domestic wines, cordials and the
like returned the Government S46.-
100000 in excise taxes, more than
Is times as much as the $1,858 900
from imported wines, the quantity
of which was held down by the
shipping shortage and other war
effects.
Occupational taxes on distillers,
blenders and other rectifiers and
retail and wholesale dealers in
spirits totaled s8,232, 900 while brew
ers and retail and wholesale beer
dealers paid in $3,078000.