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Show " It Takes Both, War Bonds and Taxes, to Win Victory Tax Special Direct Levy Asked to Help Meet Heavy War Costs WASHINGTON, D. C Approximately 50,000,000 American Ameri-can workers began to make an added contribution to the War cost this month in the form of a 5 Victory tax. For many millions of Americans the Victory tax and the 1943 income tax are the first direct levies to be made by the Government to meet the staggering War costs. And it will take both . . . taxes and War Bonds ... to provide the sup-Dlies sup-Dlies and materials to win the War and the peace afterwards. were roughly 2.5 billion dollars, leaving 73.5 billion dollars of disposable dis-posable income. During 1943 total income payments are expected to rise to 125 billion dollars and total personal taxes under existing revenue reve-nue legislation will be 15 billion dollarsleaving dol-larsleaving 110 billion dollars of income at our disposal as against only 73.5 billion dollars in 1940. In 1943 Mr. Average American will still be carrying a much lighter tax load than his Canadian or English brothers-in-arms. In Great Britain total national and local taxes paid by individuals at present amount to 31 percent of the national income. In Canada, total individual taxes amount to 25 percent of the national income. In the United States, total personal taxes, Federal, state and local, will amount in 1943 to 18 percent per-cent of national income. Our English Eng-lish allies invest an additional 10 percent of national income in War savings. Our Canadian allies invest an additional 11 percent of national income in War savings. We Americans, Ameri-cans, to match the record of our Canadian Ca-nadian neighbors, would have to invest in-vest this year 20 percent of our national na-tional income in War savings. To match the English record we would have to invest 23 percent of national income in War savings. U. S. Treasury Departmtnl The Treasury Department esti- mates that the Victory tax will raise approximately $2,000,000,000. Every person receiving more than $12 per . week must pay the Victory tax upon that part of his income over and above the $12. For example, a married mar-ried man with a salary of $50 per week, with two dependents, would make only a net payment of $1.06 per week after allowance for postwar post-war credit. The Government has made every effort to make the impact of the new tax as light as possible. The law, in effect, provides that in the case of married persons whose sole income is from wages or salary, 40 percent of the Victory tax paid (up to a maximum of $1,000) plus 2 percent per-cent for each dependent (up to a maximum of $100) may be used as a credit against whatever Federal income taxes the individual may owe at the end of the year provided he if : has purchased certain War Bonds, or paid old debts or paid life insurance insur-ance premiums equal to the amount of this credit. In the case of single persons this credit will be 25 percent of the Victory tax paid (up to a maximum of $500). Should the Victory Vic-tory tax credit exceed the individual's individu-al's Federal income tax, the unused portion of the credit may be refundable refund-able to the taxpayer. Even with the Victory tax, the 1943 income tax, and all other taxes paid by individuals, the average American will have more money with which to buy War Bonds than he has ever had before. Here are the statistics which explain that statement: In 1940 the total income payments made to the American people amounted to about 76 billion dollars. In that same year the total personal taxes paid, Federal, State and local, |
