Evening star., 1951-06-03
George Opposes Plan,
To Tax Corporations
Retroactive 10 Jan. |
By J. A. O'Leory

~ r." - @S~hY
A tentative decision of the House
Ways and Means Committee to-
make higher corporation taxes re-
troactive to last January ran into
first signs of opposition in the
Senate yesterday.
Chairman George of the Senate
Finance Committee, who will have
charge Of the revenue bill in that
branch. said he is quite conf
dent" the Senate group will not
60 back as far as January.
Senator George did not suggest
an alternative date. but pointed
out "it will be some time" before
the new tax bill becomes law.
Present indications are a COM
pleted revenue measure may not
reach the Presidents desk until
September. and some observers be-
lieveFthe two houses may wind upI
applying the higher corporation
rates to only a part of 1851 earn
tngs. i
May Be Ready Wednesday.
Since the income taxes Of most
individuals are withheld at the
source from pay envelopes, there
is no inclination to make the
higher individual taxes retroac-
tive. The House Committee has
voted to start these increases on
September /.
Up to now all of the decisions
by which the House Committee
has set out to raise about ST.
billion of new revenue have been
tentative. For the past week
drafting experts have been busy
translating these tentative deci-
sions into bill, which may be
ready for the committee by We'd |
nesday. The committee is ex-
pected to report the bill out by
Friday, and take it up on the
floor of the House during the week
starting June IL.
1212H % More For individuals. !!
Barring last-minute changes
this week, here is how the measure
seeks to raise ST. billion to help
meet the heavy defense program:
Individuals-A fat 1917 per-
cent increase for all taxpayers
except those in the very high in
come brackets. The individual
would compute his tax on exist
ing tables and then add 1912 per
cent to the amount he now pays. |
Estimated yield, $29 billion.
Corporations-A S percentage
point increase in all rates. This
will make the rate 80 per cent on
the first $25 thousand of earn
ings, and So per cent on normal"
earnings above $25 thousand. The
excess profits rate also is boosted
from n to 80 per cent. The base
for determining excess profits
also is changed so as to exempt
from excess profits only rs per
cent instead of IS per cent of
taxable earnings during the best
three years out of the four year
period 1946 to 1949 inclusive. Es-
timated yield. $2.9 billion. /
Senators Withhold Judgment. /
Excises-IncreaSed rates on a
wide variety of purchases, in
Guiding liquor, beer. wine, tobacco,
automobiles, gasoline and sport
ing goods. Estimated yield, 81
billion.
Miscellaneous levies, $500 mil
lion.
Top-ranking members of the
Senate Finance Committee are
withholding judgment on the de-
tails of the House tax structure
until that branch takes final
action. about June IS.
Chairman George said he will
call preliminary meeting of the
Senate Committee in about 10
days to prepare for Senate hear
lngs, which are likely to last for
several weeks.
Inc TAX measure is not likely
to reach the Senate floor before
August /. The length of Senate
debate is likely to depend on how
many changes the Senate COM
mlttee makes in House provisions.
II there are substantial changes.
the final schedule OF tax increases
will be written in a joint House.
Senate conference committee.
Foreign Aid Marks Time.
Meanwhile, another big issue
the $S.5 billion foreign aid pro-
grants still marking time.
Chairman Richards of the House
Foreign Affairs Committee had
tentative plans to start hearings
on this bill Tuesday, but with
Secretary of State Acheson tied
up in the Senate investigation of
the Macarthur controversy, Mr..
Richards has put off the foreign
aid hearings, at least until June
IL. Even that date is tentative.
Next to taxes and foreign aid,
come the annual appropriation
bills for the year starting July l..
The House has passed half of
these money bills, but all ten of |
them are still awaiting Senate
action.