The potters herald. [volume] (East Liverpool, Ohio) 1899-1982, 1950-08-31
Mounting War COSTS Strengthen
Tax Sfund Of Senufe Liberals

| Washington (LPA)-Sharp dis
satisfaction with the tax bill which
reached the Senate floor August
"a has strengthened the hand of
liberal Democratic Congressman
who want to pay at least part of
mounting military costs through a
levy on the excess profits of corp
orations.
Both AFL and CIO have urged
the Senators to support an excess
profits tax amendment proposed
by Sen. Joseph C. O'Mahoney Cd,
Wyo.). Americans for Democratic
Action wired Senate leaders that
the bill with it's ingenious tax
lodging devices is a profiteer par
adise."
Sen. Paul Douglas Cd, Ill.,
pointed out that, on the same day
the tax bill debate started, an ad-
litional $15R billion in military
spending during the coming year
was okayed by House committee.
The tax bill would pick up only an
additional SO billion during this
same period. won't the inevitable
result be-" Douglas asked, "a great
increase in prices, and initiation
with all the terrible consequences
that will bring? This tax bill should
be increased upward very, very
radically as quickly as possible on
the floor of the Senate"
Chairman Walter George Cd,
Ga.) of the Senate tax-writing
committee was caught between two
fires of criticism. One was levelled
by liberal Democrats, backed up by
organized labor, insisting that an
excess profits tax be added and
that loopholes giving a break to
wealthy taxpayers be closed. The
same liberal Democrats plus many
others, contrasted the SO billions
in income that would be picked up
by the bill with the nearly SIG bill
ions in new military costs that the
government will have to pay.
They were not satisfied with Sen.
Georges promise that this was
just "the first step in financing the
expanded military appropriations
resulting from the war in Korea"
Sen. Hubert Humphrey, who will
be joined by others, has listed
twelve loopholes which convert the
Senate committees bill into pork
barrel tax legislation. He and
other Senators will try on the Sen
ate floor to plug them. They are:
/. DIVIDEND WITHHOLDING
Out Of about SO billion paid out
in corporation dividends annually,
one billion is not reported on stock
holder tax returns. Wageholders
must pay taxes as earned, whyl
continue to tolerate evasion byl
coupon clippers? The provision I'M
the House bill for Withholding
taxes on dividends should be re-
stored. The government is now los
ing between $l60 and $l70 million
a year under present law.
2. PERCENTAGE DEPLETION
the senate nor House bill
does anything to limit the excessive
depletion allowances for oil and gas
and other minerals which the Pre-
sident described as the worst loop
hole in our tax laws. The windfall |
costs the government $400 million
A year.
8. OIL ROYALTIES - Instead
If receiving royalties from oil
wells, which are subject to ordin-
iry income and surtax rates, oil
men would be able to "selp their
right to such income for a one year
period or longer, and be subject
'nly to capital gain rates of half
his amount.
A. FAMILY PARTNERSHIPS
This is a retroactive reversal of
Supreme Court decisions which re-
used to allow businessmen to
make fictitious partners" of their
wives, children and other relatives
'olely to split up their income for
AK purposes.
5. STOCK OPTIONS - Corpor-
tie executives would be allowed to
)ay at capital gains rates in lieu
If normal and surtaX rates, on that
part of their salary received in the
'orm of options to buy company
stock at less than market price.
6. TAX FREE REDEMPTION
)F STOCKS TO PAY ESTATE
rAXES-Estates of owners of cor
would be allowed to draw
Town accumulated earnings and