Evening star., 1948-01-04
|Schuman Wins Test
On Drastic French
Income Tax Bill
BY the Asseciessd Press

lister ROBERT Scnuman won mis-
first test vote in his drive for an
unpopular income tax measure
in the Chamber of Deputies to-
day and appeared assured of a
substantial majority on Monday
when he will stake the life of
his government on a question of
confidence.
The government apparently had
succeeded in lining up nearly all
centrist and moderate votes for the
drastic tax bill to provide i25, ,000,-
100000 francs (more than 1000
000, 0,000) for reconstruction, despite
the determined opposition OF Com
munists and deputies representing
farmers.
The test vote came on two rela-
lively unimportant amendments
proposed to the second of the eight
articles of the measure. The amend
ments, bundled under one vote as
a time saving procedure, were
turned down, 322 to 262. The first
and other noncontroversial articles
were adopted by show OF hands.
Rules Require Delay.
The Premier then announced that
the government was posing ques-
ton of confidence on five other
amendments to the second article,
and demanded that it be adopted
unchanged. The vote cannot be
held until Monday because under
the rules a full day must elapse
between the posing of a question OF
confidence and the actual vote.
Although no vote of confidence
was involved in the rejection of
the two amendments today, the
Premier had declared the govern
ment~woald consisaes@passasa6saa
amendments vote 81 fii$tffIst.@
It therefore was considered a test
of his parliamentary strength on
the measure.
The parliamentary atmosphere
had changed considerably since
yesterday, when the life of the gov
ernment appeared in doubt.
Rene Mayer. speaking for the gov
ernment, estimated that 100000
artisans in lower salary brackets
would have been exempted from
paying 5000, 900, 900 francs ($75 5.000,-
00O in taxes by the two amend
ments
40 Amendments Proposed.
The amendments on which Mr.
Schuman staked the life of his gov
ernment would exempt further
groups of artisans. He also asked
for vote of confidence on three
groups of amendments to the third
article which would exempt nearly
/ ,O0O, ,O0Or small farmers He was ex-
pected to request confidence again
on amendments to free all persons
owning war-damaged property.
Altogether 40 amendments had
been proposed for. the eight articles.
The original government bill was
designed to sponge up" $50, 900 ,O00,-
600 francs for reconstruction, re-
and re-equipment of in
dustry and agriculture, but through
cuts and amendments the assembly
had reduced the estimated amount
of revenue to less than 100000, ,000,-
900 francs.
Most of these amendments freed
small farmers, artisans and owners
of war damaged property.
Premier Schuman thereupon took
the drastic action yesterday of
withdrawing the entire measure
and sending in a new ''compromise"
bill to raise 125, 1000, 100000 francs.
Like the original bill, it frees any
taxpayer from its rigors if he buys
a special issue of bonds equal toI
the sum he would have to pay in
the new taxes. In this respect It'll
has been called a forced loan," al
though it only applies to part of
the population.
Since the law would apply to all
annual incomes above 10000 francs
(about $4,000. the mass of French
men would escape the extraordi-
nary reconstruction tax. The mini
mum annual wage by law in France
is about 10000 francs and the av-
erage workers salary ranges be-
tween 100000 and 250,000 francs.
BY attaching the question of con-
fidence to the tax bill Mr.. Schuman
demonstrated the Importance he
places on it in his economic policy
of curbing imitation by drawing off
surplus spending power and excess
currency circulation.
The Bank of France statement
today announced bank note circula-
ton in the country had crossed the
900, 900, 100000 franc mark for the
first time. At the present rate of
increase it will reach the trillion
mark before summer.