Evening star., 1951-06-13
SIS Billion Tax Bill
MAY Leave Committee
Today or Tomorrow

may come out of the House Way
and Means Committee late toda.
or tomorrow, but will face a Ions
journey through the House ane
Senate before it becomes law.
AS the committee met thi
morning it had remaining fol
settlement proposed increases OF
gasoline, automobiles, some house.
hold appliances and a boost in tn,
excess profits tax on corporations
The bulk Of the new revenue
will come from decisions already
reached to take another 1917 PEE
cent from individuals on theil
incomes. and an increase in tn,
normal tax on corporations.
Tax bills usually go through
the House as written in commit
tee, but this measure may underg,
some changes in the Senat,
Finance Committee, which will
hold several weeks of new hear
ingS after the House acts.
The House group yesterday con.
|f1rmed an earlier tentative deci.
sion to tap a new source of reve.
nue. by slapping a 10 per cent ia,
on professional gamblers. Othel
increases nailed into the bill yes.
|terday included:
Cigarettes, from Z to 8 cents .
pack.
Whisky and other hard liquor
from 50 to $10.50 a 100-proof gal
lion.
Beer, from So to SO a barrel.
Wine, up an average Of 12k
per cent.
Diesel fuel to be taxed 2 cent,
a gallon when used in highwa,
vehicles.
Cigarette lighters, 20 per cent
at retail. Fountain pens and me.
chanical pencils. 30 per cent O,
manufacturers price.
Bowling alleys and pool tables
from $40 to $25 a year.
Coin operated gaming devices
from $3.50 to $3.50 a year.
Toilet articles bought by barber.
shops and beauty parlors for us,
in those places of business woult
be exempt from tax. The commit.
tee also granted bathrooms exemp.
ltion from the cabaret tax.
The admission tax was made tt
apply to the actual price of 8
ticket and not the stated price
when a discount is given.
The proposed new wagering ia,
would apply to professional gam.
Iolers-bookmakers. lottery proprie.
tors. numbers" or policy" opera.
tors, and men who run pools OF
sporting events. Committee spokes.
men said it would not apply tt
card games, roulette wheels, Office
pools and carnival devices. Mo-
would it hit pari-mutuel betting al
race tracks.
The gambling tax would be il
effect a 10 percent tax on the grosl
receipts of the professional gam.
bier. Suppose the odds on a hors.
were 10 to /, for instance, and {
"bookie" took a SO. bet. The tai
would be 10 percent, or 81, regard.
less of whether the horse won o.
lost. If the horse won, the book.
would pay out $100 on the bet bu
the tax on the whole transaction
would be 81. applying only to ths
money placed with the bookie.
The tax would be collected
monthly from the operators O
book. pool or lottery. Penalties fol
Iwillful evasion would run up tt
five years Imprisonment and $10,'
1000 fine.
A $50 q year occupational ia,
would be imposed not only on th'
principal operator of such {
gambling scheme, but upon eacl
of his agents, such as runners fol
numbers operators.
The committee estimates tht
gambling levies will produce $40|
million additional revenue yearly
but this obviously is somewha
shaky since details of Just how
to get about collecting it have NO
been worked out. The tax woule
apply whether gambling is lega
Ilocal1v oY not