Evening star., 1950-11-12
House Group 10 Start
Hearings Wednesday
On Profits Tax Bill
By J. A. O'Leory

The House Ways and Means
Committee starts public hearings
Wednesday morning on the excess
profits tax issue, but, with little
prospect of rushing a new revenue
bill through in the few remaining
weeks of this Congress.
Higher business taxes to meet
the mounting cost of the defense
program appear inevitable in the
near future, but probably will be
written by the 82nd Congress,
which convenes January 3.
1t is possible that administra-
tion leaders could get measure
through the House during the
lame duck" session, which will
run from November AZ until near
Christmas. It is hardly prob
able, however, that the Senate,
with unlimited debate, would COM
plete action on the controversial
subject of an excess profits levy
in the short time that will be
available to the dying 81st
Congress.
Defense Revenue Is Topic.
The big topic of discussion at
the opening of hearings this week
is expected to be whether the
added revenue for national de-
fense should be obtained by the
excess profits formula, or by an
other boost in the normal cor
poration rates.
Representative berharter
Democrat, of Pennsylvania. a
leading advocate of the excess
profits levy. said he did not be-
lieve the proposal of some business
groups for a substitute increase
in the regularrate on corporations
would produce the amount of
revenue required.
THE proposal to institute a
straight increase of ten points on
the corporate rate would bring in
only about one-third the addi-
tional revenue that must be
raised" he said.
| Corporation Rate Already Up.
Congress a few months ago
raised the corporation rate from
38 to As per cent, as part Of the
SAT- billion tax bill, which also
hiked the income tax of individ-
uals On october /. There are esti-
mates ranging all the way from
81 to So billion on the further
amount that will be needed in
higher business taxes. depending
on how fast defense funds are
spent.
The present views of the ad-
ministration on the form and ex-
tent of the new tax bill will be
revealed at the opening hearing
Wednesday, when Treasury Secre-
tary Snyder. or a spokesman for
him, takes the stand.
There was strong Democratic
support in Congress just before
the September adjournment for
an excess profits levy, but there
were others who argued that, ex-
cept in time of full-scale war, IL
would not be the most economical
or effective type of tax. AS a COM
promise, the issue was laid aside
with instructions to the House
and Senate taxing committees to
make a fresh start on the subject
in the lame duck" session.
200 Applications OKd.
The House Committee has ac-
cepted more than 200 applications
from individuals wanting to be
heard. Hearings have been ar
ranged for four days this week
with the schedule thereafter un-
determined.
The election results, in which
the Republicans gained 80 seats
in the House and five in the
Senate-subject to possible slight
changes in one or two close races
will work against hasty passage
of tax bill before January.
| II a bill drafted now fails to get
through both houses before the
Christmas recess, it would have tc
be reintroduced and start over
again in the House Committee
on January 3. At that time the
makeup of the committee will be
somewhat different, and the party
lineup on the floor of the House
and Senate will be substantially
changed in the direction of what
ever tax program the Republicans
donida &r, cIn,,r,n,.t