Evening star., 1950-11-16
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profits tax, if adopted, should
carry a very moderate" rate.
Under questioning by Represen-
tative Simpson, Republican of
Pennsylvania, Mr.. Tarleau dis
closed that he had plan pre-
pared for alternate forms of tax
alton.
Mr.. Simpson sought to have
this proposal inserted in the hear
ing record. but the move was
blocked by a committee vote of
Is to 10 along strict party lines.
Copies of Plan Requested.
Representative Mason, Republi-
can of Ohio, then asked Mr.. Tar
leau to give him personally a copy
and Representative Reed. Repub-
lican of New York, asked the wit
ness to supply each Republican
member with a copy. Mr.. Tarleau
said he would.
Previously Mr.. Reed, ranking
Republican on the committee, had
charged that the Democratic ma
Joriry was mot even interested,
in trying to write sound tax leg
islation." He added that many
of the country's most responsible
business organizations have al
tentative proposals which the
committee should in all fairness
hear." To deny them this right.
he added, is "the rankest form
of steam-roller tactics and gag
rule"
DR.. Arthur Smithies of Harvard
University. testified that an ex-
cess profits tax would be "indis-
criminate IN its impact" and
would not effectively single out
rnjustlfied profits for special
taxation. He proposed, instead.
the recapture of unreasonable
profits on Government contracts
through direct renegotiation of
those contracts and increases in
regular corporate taxes, possibly
UP to so per cent, on other un-
justified profits.
Henderson Opposes Boost.
During DR.. Smithies' testimony
there were two other committee
roll calls as the Democratic
majority beat down moves to
broaden the testimony into a dis
cussion of other possible forms of
taxation.
Leon Henderson, former price
administrator, and Robert c..
Taitt, president Of the Stromberg-
Carlson Co., appeared in opposi-
ton to the proposed tax as repre-
sentatives of the Business Com
mittee on Emergency Corporate
Taxation.
Mr.. Henderson said the excess
profits tax is "a built-in barrier"
to new investment and is not "a
startling revenue producer" He
proposed that additional revenue
for the defense program be
raised from appropriate increases
in traditional sources"
Mr.. Taitt emphasized the
Sitting" effects of such taxes on
business and said he, personally,
favored increases in regular cor
porate income taxes. An excess
profits tax, he testified, fosters
waste and ineficiency."
DingeIl Challenges Proposal.
This brought a quick rejoin-
der from Representative Dingell.
Democrat, of Michigan, who said
he hoped to see written into a
new excess profits law strict pro-
visions against wasteful spending
by corporations subject to the tax.
The committees speed-up ac-
ton was taken on motion by
Representative Cooper, Democrat,
of Tennessee. 1t provided that
where possible" no more than
one witness should appear for a
single industry and a 15-minute
time limit was placed on the tes-
timony of individual witnesses.
Where more than one witness ap-
pears tor an industry they may
split the Is minutes among them.
This means that many who
have wanted to testify on the
LEGISLATION probably will have no