Evening star., 1951-02-02
policies Of recent
years.
Excise Increases Asked.

years.
Excise Increases Asked.
The first tax returns under the
new excess profits tax law will be
received later this spring. We
shall then be in a position to con-
slider what changes in the excess
profits tax law are desirable to
obtain more revenue from that
source. I believe, therefore, we
should defer this matter until
later this year.
I recommend, third, increases
in selective excise taxes to yield
3 billion dollars. Under present
circumstances. these increases
should be concentrated upon less
essential consumer goods, and
upon goods which use materials
that will be in short supply.
In addition to the tax increases
recommended above, recommend
that the Congress carry further
the program it started last year to
close loopholes in the present tax
laws.
The revenue to be gained by
closing these loopholes is not
large in comparison with our
needs. But in terms of fairness
and willingness of people to pay
their share of taxes, closing these
loopholes is worth a very great
deal.
Loopholes to Be Closed.
Those required to bear higher
taxes for defense are entitled to
the assurance that others will not
be permitted to avoid them. The
last Congress closed several i'm
portant loopholes. But a number
remain.
I have previously called atten-
ton to the gross undertaxation oil
the oil and mining industries, tc
the broad loopholes in the estate
and gift taxes, and to the undue
preferential treatment granted te
capital gains in comparison with
ordinary income. I urge the
Congress to examine these provi.
sions Of the law very carefully
together with those relating tt
life insurance companies and tx
holders of securities now exempt
from income taxes, and to review
the tax status of organization!
now exempt under present law
I do not believe any of us, in gooe
conscience. can take action to in.
crease taxes on the man, with s
wife and two children. who earn!
$50 a Week-an increase I am nov
recommending - without at ths
same time taking action to re.
duce the glaring inequities ii
present law-some of which per.
NIT a man with one hundred time.
as much income to avoid payins
any taxes at all.
In addition to the changes II
the law that are needed to clos,
loopholes, we shall continue tt
improve our enforcement effort
to make sure that the taxes which
are due under present laws ar,
actually paid.
Convinced of Fairness.
The tax program I am proposin,
will require higher rates in SOM
cases than those paid during tn,
last war. I believe our peopl
understand that if we had pai,
higher taxes then we would b.
better off today. I believe ou
people are ready and willing t,
pay the taxes needed to cove
essential Government expenditure
in this time of danger.
I am convinced that the averag,
citizen in our country will be bes
served by fair tax laws which will
balance the budget. He will b.
better off now. because he will pa,
his share of the cost of defens'
now, once and for all. He will b.
better off in the future, becaus,
his savings and his future incom,
will not be dissipated by imitation
The American people under.
stand that the cost of freedom Il
high at a time when aggression
has been loosed on the world.
urge the Congress to act rapid,
so that we can pay that cost q!
we go.