Evening star., 1951-10-21

Hishlishts Of How the New Tox Bill
Affects Everybody. Poee "A
which he said give wealthy per-
sons new chances for escaping
their share of the tax load.
He said in a statement an
nouncing the signing that the
IS ,69l 100000 is not enough, and
he added that when Congress
comes back in January he would
ask for Legislation improving our
tax laws"
Mr.. Truman said he signed the
bill, and knew that many in Con-
gress voted for it. not because it
is good bill but because I'VE
badly need these revenues to help
pay for the strong defenses We
are building"
Income Tax Boosted.
The new law provides for in
|diVidual income-tax boosts rang
ing between II and II per cent
for most taxpayers. effective No
vember 1; excise-tax increases on
"a long list of items; bigger in
come and excess profits taxes for
some industries and various other
changes.
The President also took a shot
at the Jenner rider permitting
States to publicize relief rolls with
out losing their share of Federal
social-security allotments.
He said that this is quite un-
related to the purpose OF raising
revenue.
Like the new individual income
tax rates, the higher excuses be-
come operative November ! be-
cause. the President acted before
the Sunday midnight deadline. If
he had waited until tomorrow or
later. the excise rates would
not have become effective until
December l, thus depriving the
Government of an estimated $100
million to $120 million in addi-
tional revenue.
Text Of Statement.
Here is the text of the Presi-
dents statement:
Il have today signed H. r. 4473.
the Revenue Act of 1851. This act
will raise about SIS billion in ad-
ditional revenues in a full year
the bulk of it from taxes on indi-
vidual and corporate incomes. 1t
will raise about $2.5 billion in the
remaining months of the current
fiscal year.
II have signed this act because
we badly need these revenues to
help pay for the strong defenses
we are building. At the same time,
there are certain features of this
legislation which are unfortunate
from the standpoint Of a sound,
far tax system.
Il know there are many men,
bers of the Congress who feel as
I do about these features of the
act. I appreciate the fact that
they voted for the bill. in its pres
ent form, for the same reasons
that I have signed it. namely, be-
cause of the immediate need for
revenue and because there was no
possibility at this late point in the
congressional session of making
major improvements.
Il do not believe, however, that
we should be satisfied with the un-
fortunate features of this act.
This legislation will not raise
enough revenue to enable us to
keep on paying as we go for our
defenses in this emergency period:
this is a serious departure from
the standards of sound govern
ment finance"
Criticizes "Loopholes."
Furthermore, this legislation
does little to close the loopholes
in present tax laws, and in some
respects provides additional means
by which wealthy individuals can
escape paying their proper share
Iof the national tax load through
such devices as excessively liberal
capital gains provisions. family
partnerships, and excessive de-
Ipletion allowances on oil and gas
and certain minerals properties.
"In addition, the act contains a
rider - the so-called Jenner
amendment-which is quite un-
related to the purpose of raising
revenue, and which may we'll re-
suit in unwarranted publicity, and
personal indignity and unhappi-
ness, for aged people and others
receiving public assistance.
IF we did not need the revenue
from this act so badly, would not
have approved provisions such as
these. AS it is, I feel that I must
sign this legislation, but I shall
urge the Congress at it's next
session to give major attention to
legislation improving our tax
laws"
Shah Halls Mossndegh
I NEW YORK. Oct. 20 -(P)- A
message from the Shah of Iran