Evening star., 1951-01-14
SIG Billion Tax Boost
May Be Required 10
Raise Budget Funds
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90 s~S
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That would be SIG billion or more
above what present tax laws-in-
Guiding the post So billion
increase-are expected to yield in
revenues in fiscal 1852.
The President so far has not
stated publicly exactly how much
additional taxes he would ask.
In his economic message to Con-
gress Friday he merely said that
the new boost should be Every
much more" than the SO billion
increase already voted.
Members Voice Concern.
Chairman Doughton of the
House Ways and Means Commit
tee commented graphically to
newsmen that twice that much
would be very much greater,
wouldn't it?" This appeared to
lend strength to the reports that
the President would ask about
SIG billion.
Generally, members of Congress
agreed that taxes must be raised
again, but comments were favored
with a note of concern.
Mr.. Doughton said "We will
do the best we can without
strangling or suffocating our econ
omy." Chairman George of the
Senate Finance Committee took
virtually the same stand.
Some members privately voiced
doubts that SIG billion more a
year can be raised on top of the
new record $50 billion-plus ex-
pected to be obtained under exist
ing tax law. The dollar size of the
tax load now is far ahead of the
World War II record of $43 billion
collected in 1945.
Hearings Start Feb. S.
Capitol Hill remembers that one
of the greatest controversies of
World War II came where the late
President Roosevelt called for a
sos billion tax boost.
1t was then that Mr.. Doughton
came up with the now-famous
observation: You can shear a |
sheep every year, but you can't
skin him but once"
Mr.. Roosevelt then finally got |
a $2.5 billion increase instead of
sos billion.
In the present situation there
seems to be a desire by most men,
bers of Congress to put the cost
of defense on pay-as-you-go
basis, if possible. But when they
get down to deciding just who
shall bear the brunt of the in
creases there are bound to be wide
controversies.
The tax-framing House Ways
and Means Committee yesterday
set February 5 for the opening of
public hearings on the biggest tax
measure. /
Mr.. Truman has not said yet
just how, the new billions for de-
fense can be raised. but the law
makers got some hints of things
to come in the report Of his eco
nomic advisers, made public Fri
day.
More From individuals.
If the President and congress
follow the advisers. the big tax
bill probably would:
l. Draw more billions from the
individuals. Explaining that 86
per cent of individual income goes
to persons making $4,000 a year
or less, the advisers said "by far
the largest part of the additional
revenue must come from the mid
Ole and lower tax brackets" This
may mean lowering of the pres |
ent $500 exemption for each per-
son, if Congress follows World
War II precedents. This would
add millions Of new taxpayers to
the rolls, The advisers said, too,
that drastic increases in rates
will be necessary" Individual
taxes were boosted by almost So
billion last fall Taxes on per-
sonal incomes now are yielding
about $40 billion a year.
@ Increase the corporation rate
again. In the two tax boosts since
the Korean war began Congress
has increased the corporation top
rate from 38 per cent to At per
cent, and has slapped on a III
per cent excess profits tax. Cor
poration taxes are bringing in
some $40 billion at the present
rate of national income-about
the same as the yield from in
dividuals.
Excise Tax Increase.
3. Heavy increase of the excise
taxes, especially on civilian goods
which compete for materials and
facilities needed in the defense
effort. But in this field the ad-
visers recommended staying away
from commodities of mass con-
sumption. They said these are, in
general, necessities of life, and to