Evening star., 1953-09-29
New Tax Proposals
Covering Wide Field
Under Consideration
By Robert K. Welsh

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Tax proposals touching on to-
bacco, oil production, business
expenses, tax-exempt groups,
laundry services and flour mills
are repeatedly among possible
revenue-raisers being studied to
help offset an SO billion drop in
other levieS next year
The much-battered Federal
sales tax subject faces an in
creasingly doubtful future. This
draws sharper attention to varied
other tax ideas being batted
about.
Treasury spokesmen will not
disclose adjustments which
Secretary Humphrey said are un-
der consideration They will not
unveii until January at least,
any specific recommendations to
revise or laiSe taxes.
Enough is heard at the Capitol
or urged in other quarters, how
ever, to show that the Treasury
is looking into many suggestions
besides the sales tax. None OF
them, or any combination there
of, seems likely to provide the
necessary billions.
Must Meet Reduction.
rT1lo;. ;e o,,a os 1,,,yoaroI,c Sio1oS
pointing to the Eisenhower ad-
ministration's extremely difficult
fiscal problem. The Treasury's
immediate task is to find prac-
tical ways and means of making
up for the So billion revenue re-
duction that would occur after
several taxes decrease or die, by
present law, between next Janu-
ary / and April l.
The job ultimately involves
trying to stave off threatened
huge deficit for the 1855 fiscal
year and still avoid substantial
tax increases in the face of con-
gressional, election year and
outside pressures for lower taxes.
Revenue losses of So billion
a year will result from expira-
ton of the excess profits tax
January l and So billion from
the scheduled 10 per cent cut
back in individual income taxes
on that date. The administration
has said it will not ask that
those levieS be continued
On April l, further reductions
of almost So billion from cor
poration income tax cut and 81
billion in a few excise tax cuts
are due to take effect unless
Congress intervenes. The ad-
ministration is expected to re-
new its requests that the cor
poration tax rate be kept un-
changed. 1t probably will ask
that the excises be extended and
perhaps increased as we'll as
spread to other items and serv-
ices.
House Group Opposed.
The congressional trend, par
ticularly in the powerful House
Ways and Means Committee. is
against continuing those levieS
or praising taxes of any kind. In
fact. general tax revision bill
growing out of extensive COM
mittee hearings might cause
further drop in revenue.
Moreover, almost so House
bills and some IS Senate bills
were introduced since last jan
uary to reduce or eliminate Spe-
Gifted excise taxes. Those did
not include the dozens put in to
end various taxes such as the
admissions tax on motion pic
ture theaters, a bill passed by
both branches but vetoed by the
President
In any event, Treasury and
congressional experts are exam
ining numerous other tax posi-
bilitieS from numerous sources
in and out of the Government.
Such proposals include not only
moves to increase present taxes
or apply new ones. but also sug-
gested methods of filling the
Governments Golfers by improv-
ing procedures, plugging loop
holes, and distributing the tax
burden.
Suggestions Listed.
Here are some of them:
Save many millions" a year
by tightening tobacco tax pro-
visions, and possibly providing
several slight increases.
Tax such things as hotel
rooms, laundry operations and
similar services not covered by
present Federal levies.
Raise almost 81 billion a year
TR AAk -