Evening star., 1951-11-01

Higher Excise Taxes
And Income Levies
The buying public began to pay
up today for the vastly increased
cost of the national security pro-
gram.
First out of pocket were sales
tax raises on cigarettes, gasoline,
liquor and many household appli-
anceS.
But the bulk of the load won't
be felt until salary checks and
Retroactive Poy Spurs Rush to Buy Before
Tex Rise. Poee B.
domestic budgets reflect the new
income tax boost of between IL
and II per cent for most persons.
The withholding rates goes up
on every November salary pay
ment. New income taxes are ex-
pected to raise $2,280, 100000 out
of the $5.7 billion tax increase
in the law effective last midnight.
Heavier corporate and excess
profits taxes are calculated to-
bring in $2,207 100000 a year
Some of these increases are retro
active to last April and others
to July L.
---e.r Some Taxes Cut.
Not all of the changes were up
: ward, however.
= The levy on kilograms drops
+, from 20 to Is per cent.
Parents no longer will have to-
pay 20 per cent on baby oils. pow.
ders and lotions. The tax on some
tobaccos came down from 18 to
10 cents a pound. A 3l2 per cent
levy on electric current was re-
pealed.
A special relief for persons who
sell their homes on an inflated
market has been provided. Profits
from such sales are tax free if re-
invested in another personal
dwelling within a year. The pro-
vision applies to all home sales
since the first of the year. /
Even a few income taxpayers
will get some relief. Under the
new law, a dependent can earn
as much as $500 a year without
losing this status.
In general, however, the Salaried
taxpayers will have to stretch a +
reduced pay check to cover in
creased expenses.
Pre-Tax Sales Boom.
Washington merchants, ihclud-
ing liquor and electric appliance
dealers, experienced boom in
sales during the last week. Some !.
dealers feared their pre-Christmas
trade might suffer as result of /
the buying rush and the new price
schedules.
There seemed some doubt that
the new taxes on gamblers will
bring in the $407 million eSti-
mated by the lawmakers.
The gamblers are supposed to
buy $50 occupational tax stamps,
list employees and places of busi-
nesses, and pay 10 per cent tax
on the total of the bets placed
with them. .
q Plans have been announced
here and in other Jurisdictions
for attacking the constitutionality
of the law on the ground it would
force gamblers to come forward
with information that might tend
to incriminate them. /
If the law remains in effect. it
will either drive the gamblers out
of business, their attorneys say, or
force them further underground
than they are now.
Major Changes.
Here are the main excise tax
increases and changes:
Liquor-From SO to S1O.50 a
gallon. This boost figures out to
about 26 cents a fifth on ordinary
type whisky. /
Beer-From So to SO barrel.
This amounts to about one third
Of cent on a 12-ounce bottle.
81 Wine-lncreases ranging from
IA to "a per cent on most types.
b Cigarett tes-From 7 to 8 cents
on the ordinary pack of 20.
Gasoline-From l12 to 2 cents "
a gallon.
Automobiles and motorcycles
From 7 to 10 per cent of the man.
ufacturer price.
Trucks, buses and trailers-
From S to 8 per cent of the manu-
facturer's price.
Automotive parts and acces-
sories-From 5 to per cent of
the manufacturer price.
Tax on Appliances.
Electric, gas and Oil appliances
Not now taxed, they become
subject TO a 10 per cent tax on
the manufacturers price. Items
coming under this tax include
electric exhaust blowers, electric
beIt-driven fans, electric or gas
clothes dryers, electric door
chimes, electric dehumidifiers,
electric disnwashers. electric floor
polishers and waxerS, electric food
choppers and grinders, electric
hedge -trinnners. electric ice cream
freezers, electric mangles, electric
motion or still picture projectors,
electric pants presserS, power