The Daily Alaska empire., 1951-02-05
Y E K RIEIC TAX BOOST
 pR0p0ShL.S,
Poekefbooks of Millions 10 Be Hif by Plans Made
 by Administration

WASHINGTON, Fab. 5 --tR-The Truman administration asked Con- gress today to add 4 per cent to Federal income tax rates, double the tax on gasoline and sharply boost levies on cigarettes, automo- piles. appliances and other items. The program, which would hit the pocketbooks of millions of tax payers, would nearly triple the ex- | else tax on automobiles and more | than double the tax on television and radio sets, refrigerators and othe appliances.
 Three cents a pack would be | added to the excise tax on cigar cites, making the total 10 cents a pack. The excise whiskey would go up about 60 cents fifth and the tax on an ordinary bottle of beer would be raised Is cents.
 Proposed Boost
 The proposed increases would mean a boost of 13 per cent - from ' to 20 per cent on auto levies and Is per cent from 10 to 25 per cent on television and radio sets. The tax would be imposed on the manufacturers price.
 The present $9 a gallon liquor tax would be hiked to SIP, the S8 a barrel beer tax would jump to SIP, the seven cent a pack cigarette tax would go up to 10 cents and the | gasoline tax would be doubled, go- ling from one and one-half cents a gallon to three cents.
 Proposals Outlined
 Secretary of Treasury Snyder out lined these proposals to the House Ways and Means Committee as , part of the Administrations first installment $1o,oOO,0OO 1000 tax boost.
 The plan calls for a $4,000, ,000, 900 increase in individual income ttaxes, a $3,O00, 100000 hike in corporation I | raise in excise (sales) taxes. President Truman told Congress last Friday the first round hike will be followed by another request for an increase of about $6,500, 900, 900 later this year.
 l Basic Proposals
 Other basic proposals laid before the committee by Snyder:
 1. A boost in the capital gains tax from a flat 25 per cent to 37A per cent. The present tax applies to profits from sale of property held six months or more. The proposal would require a minimum holding period of one year to qualify for the capital gains tax in place of straight income tax
 2. Corporation income taxes Y An increase of 8 per centage points in normal income tax for corpora tions, adding $8 in tax to each $100 of profit.
 Corporations Uppings
 This would lift the rate from 25 to B per cent on corporations with profits below $25000, and from AT to 55 per cent on those with higher Iprofits
 3. Excise taxes - On autos, lift the rate from to 20 per cent of the manufacturers price to raise $685 ,000,000 a year in revenue.
 Other Articles Hit
 On refrigerators, television sets, radios, photographs, electric, gas and oil appliances, "and other con- sumer durables" = raise the tax from 10 per cent to 25 per cent of the manufacturers price, to raise s425, 100000 in revenue.
 On distilled spirits Raise the rate from $9 to SIP gallon (from 1 $1.30 to $240 on a standard fifth of-a-gallon bottle of 100 proof whiskey).
 On beer = Raise the tax from S8 to SIP barrel (31 gallons) That would raise the tax from about 25 to 3-8 cents on a 12-ounce bottle.
 Snyder also called for an exten- sive plugging of tax "loopholes." !" This would add an unspecified sum, certainly Hundreds of millions of dollars each year" and perhaps bil- lions, to the s1O,000 0o0.000 extra sought from the other tax proposals.