Evening star., 1951-05-24
Draft Of Bill 10 Raise
Income Taxes 124%
Pushed by Committee
Gen. Partridge.
BY the Associated Press

The House Ways and Means
Committee drove today to COM
|plete the rought draft of a $7.2
billion tax increase bill after vot-
ing a 1912 per cent increase in
individual income taxes.
That provision, and another
controversial one raising the cor
Iporation excess profits tax by
some $3.50 million a year. were
inserted by the Democratic ma
jority of the committee yesterday
i'm a rip-roaring session behind
closed doors.
Angry Republican members de-
|clared the Democrats framed the
two big revisions at a secret con-
ference and pledged the majority
members to back them as a unit.
"Legislating by caucus" Repre-
sentative Simpson. Republican. of
Pennsylvania called it. Repre-
sentative Reed of New York,
senior Republican member, de-
clared the Democrats 'railroaded
Ithe provisions down our necks."
Favorable to Lower Brackets.
Under the new individual in
come tax plan. taxpayers would
figure their tax under existing
rates, then add 1912 per cent to
the total liability. This would re-
place the committees earlier plan
flor an increase of three percent
age points in the rate in each tax
bracket.
The new plan is more favorable
than the original one for single
taxpayers with income of up to
$4,000 a year and for married
taxpayers with incomes under $15,.
900. Bigger taxpayers. however
would pay more.
Even under the proposed in
crease, the Federal Government
could not take more than 80 PEI
cent of an individuals income in
taxes. An 81 per cent ceiling now
applies.
The estimated additional rev.
enue is the same under both plans
81, ,845 100000 a year.
Limit on Corporations Raised.
The $3.50 million increase in
corporate taxes would be achieved
Iby broadening the base of the tax
for affected companies. The tax
now, applies to that part of a
Icornpany's profits which exceed IS
per cent of its average earnings
from the best three of the four
years from 1946 through 1949
The committee voted to apply the
excess profits tax to everything
above rs per cent of the average
The overall limit on the
amount the Government could
take from a corporation in all
kinds of taxes-normal, surtax
and excess prof1ts-would be in
creased from 81 per cent to 70
per cent.
Representative Kean, Republi-
can, of New Jersey told neWSmen
he knows of no other major re-
visions under consideration by the
Democratic members.
Even if the committee completes
all it's preliminary decisions to-
day, however, and turns the bill
over to experts for drafting, it
will be sometime between the first
and the middle of June before it
can reach the House floor.
May Reach White House in FAN.
The committee plans to go over
the bill a second time, deciding
whether to order further major
revisions then. The bill is ex-
lpected to go through the
House under procedure prohibit
ing amendments by individual
members.
The Senate Finance Committee
will hold a month or six weeks o1
hearings before going into closed
session for a point-by-point ex.
animation of the bill.
Thus it may be autumn before
the tax increase finally reache.
the White House. 1t is almost Ger.
tain that the individual income
tax increase will not become effec'
tive before September /, the date
selected by the Ways and Mean.
group.
President Truman originally
asked for $16 billion additiona
taxes, but lowered his sights tt
$50 billion when collections from
existing levies proved unexpected.
llv loroo