Evening star., 1949-05-01


ssssn Ia rscd ns lobby tsss Aaa lstaxg-
gr~&s at THE reGnrsa o1 President
Truman. extended tAesn assssgE.
nltsly A main rrASSs7 waA that
many members fell loss 81 S. j..
500 900 eno ta revenue al That time
would have affected seFsesasgs sAs
transition ffnn q wal 10 gsoaSag
Federal budget
The 2taAtAea toiRs - different,
II not reversed In some lines the
excisr cut proponents contend
Ths btsdget. while still biz has
dropped FAR heloS Wartime lstr!&.
Consumer scocA. While aot Sst
ahundAn; in all cAIeRog1es are
In vastly hette1 supply Manu-
featuring and business. ~hiie sui-
FERNS no depression etow >lEns
here and there Of rercsslse I.wnds
and tendencies Employment
and earnings have been decltnins
10 some extent. OF al least have
no, measured up 10 expectations
Tor this spring Arasosi
All this. In the opinion cf l2s
down with excises coEttneea-
adds up TO sound cause ioT dolna
something 10 swell purchasing
power. ering customers bark 70
Iewelry. clothing and specially
stores. fill empty SEATS Oh trains
and otherwise help rescue many
enterprises threatened by l!nser-
Ing high taxes,
Yet, as sort Of fiscal paradox,
a business upturn probably would
do more than economic dlkInGla-
ton TO persuade Congress 10 do
something about excise taxes
Fight on inequalities
A showdown of any real scupe
would eat into Government rev
enue. especially from such re-
putedly fair weather things as the
income and capital gains taxes.
Excise taxes, Notwithstanding
their considerable disadvantages,
are regarded by the tax collector
as being somewhat more stable
because they are oaaed on spend
ing rather than earnings Fur.
thermore. according 10 this Niew.
millions Of people do not pay In
come taxes
other arguments. being pol
ished 10 meet mounting pressure
against excessive excuses. are
that excises are comparatively
easy and inexpensive 10 round up.
that sound budgetary practice
counts on such levies 70 furnish
approximately one-foaTth OF the
total annual revenue: tha, even
the smallest suggested shaving OF
excuses would deprive the Treas.
ury OF hundreds Of Thousands Of
dollars q year: that O Topping OF
excuses would inevitably lead 10
boosting OF sdlne other taxes.
and that Government spending In
almost certain 10 be much heavier
during the coming fiscal period.
Fiscal Paradox
Those arguments are hard TO
down. People active In the effoft
10 bring cxcises down do not waste
time and energy by opposing or
sniping ct the excise tax - such.
Judging from the current cam
paign. they center their firs on
the inequalities" Of the system
and the injustice" in the diatTi-
button. They declare that Con-
gress. without endangerins the ma
tional interest or anything else.
can and should deal "selectiseiy"
with taxes on obviously non-luxufy
items that shot up 30 markedly
during the var,
The No. exhibit La an lmpTea-
sively LONG list Of excise tax rates
rs they are today and sefe before
the war. The fur tax. for In
stance. went zip from 10 10 20 PER
cent. as did the levy on cosmetaca.
baby oil. luggage and iswelry,
The tax on telegraph MESSAGES
and long distance Toll calls
zoomed from 10 TO % PR cent.
while the levy on local calls vent
up 10 Is per cent. The railroad
passenger ticket tax vas raised
from TO is per cent. and slee-
trio light bulbs from . 10 10 per
cent.
There are many others. Kuch a.
those on club due&. admission
charges and business machines.
The excise tax extension act Of
iet7 removed the TAR on fur
trimmed coats COSTING less than
$50 and on travel ticksts 70 for
eign countyiea
The tax could reasonably bs
taken Of admission charges 70
religious. charitable and CON-
munity affairs, they suggest, Jsw-
elry costing Iess than t2e. for Ia
stance. could be exempt.
Congress. moreover. h bring
asked 70 taks q cue from Canada.
The neighbor 70 the north ifleiud-
ed various excise tar cuts In re-
Gently announced over ali tax re-
ducfson.