Evening star., 1951-02-05
Snyder Asks Sharp Increase
In Income Taxes and Excises
On Cars, Gasoline, N!, Liquor
Treasury Chief Gives
Congress Details
Of Truman PIun
By Cecil HoIIond

Secretary of the Treasury Snyder
detailed to Congress today an ad-
ministration tax program calling
for an increase of four percentage
points in individual income rates,
doubling of Federal gasoline taxes,
and nearly tripling the tax on
automobiles.
The tax program, hitting hard
at consumers and individuals in
the middle and lower income tax
brackets, also proposed an increase
of SO a gallon in the tax on liquors,
a 81 a gallon increase on beer,
raising the Federal take on these
two items to $12 a gallon.
The program also asks for an
increase from 10 to 25 per cent,
at manufacturers prices, on re-
frigerators, television sets, radios,
monographs, electric, gas and oil
appliances and other consumer
durable goods.
1O-Cent Levy on Cigarettes.
Secretary Snyder also asked for
q Scent increase per package in
the tax on cigarettes, raising the
levy to a total of 10 cents. In
creases in the taxes on cigars also
were requested.
Mr.. Snyder told the House Ways
and Means Committee at the
opening of hearings on President
Truman's request for $40 billion
in additional taxes Immediately
that the increases on exciseS
would produce So billion of the
amount needed. An additional
tax bill for another $6.5 billion
will follow later in the session.
Increases in individual income
tax rates, with a recommended
boost from 25 to 37l2 per cent
In the capital gains tax, Mr., Sny-
der said, would produce 81 billion
annually.
During questioning by commit
tee members, Mr.. Snyder said the
increase in individual tax rates
should be made effective as of
January / of this year. If further
increases in individual rates are
asked later, Mr.. Snyder suggested
they could be made effective next
July l.
Higher Business Tax Asked.
He also recommended an in
crease of percentage points in
corporation normal taxes to pro-
duce So billion annually. This
would increase the rate on cor
porations earning in excess of
$25, 900 q year from At per cent
to SIS per cent. With the excess
profits tax, Mr.. Snyder said, the
increase would boost the maxi
mum rate from n to IS per cent.
Mr.. Snyder also recommended
an increase from 62 to 10 per
cent, the maximum amount of
corporations income that could
be taken by taxes.
The Secretary even limited an
additional $16.5 billion in taxes
may not be enough to balance
next years expenditures if the de-
fense program develops as rapidly
as desirable.
Clearly" he said, "taxes can
keep pace with expenditures only
if the major part of the Presi-
dents program is put into effect
promptly"
Increases in individual income
taxes and the boosts in excise
taxes in the administrations pro-
gram. as outlined by Mr.. Snyder,
hit hard at the consumer and
wage earners in the middle and
lower income brackets-the $4,000
to $4,000 categories.
Sees Little Disturbance.
Mr.. Snyder contended the in
creased excise taxes would bring
only a minimum disturbance" of
the defense economy and result in
little pressure on price ceilings" :"
The increases asked in individ-
ual income taxes would boost from
$26 to $50 billion the Federal rev.
enue from about SO million tax
payers.
Mr.. Snyder said no considera-
ton has been given at this time
to reducing personal exemptions
from 5000. During the war the
allowance was $500.
But the Secretary said that any
major increases in revenue must
come from "the lower taxable