Show i I I SIMPLIFIED TAX TAXi RETURN Continued from horn Page One and 5 per cent on those with income in- in income in- in in income come less than that but informed persons said it was likely they would v. in in co committee approval The house house left left the normal tax for corporations earning more than at 24 per cent ent and there were indications indication the se senate ate committee would do likewise The senate committee accepted the so-called so reversible credits pr provision vis on approved oy DY the house for computing corporation taxes This requires corporations to apply ap apply apply ap- ap ply the excess profits tax before the thA far v Un Under r- r present pi present se t-i t law w- w th the normal tax is is' applied first and can be deducted from income before the excess profits tax is applied The senate committee action was taken despite numerous numerous protests protests protests pro pro- tests from witnesses that the new method imposed an excess profits tax on the normal tax Opposition Develops Senate opposition materialized quickly Tuesday to the finance committees committee's proposal for stiffening stiffening stiffen stiffen- ing the new defense tax bill by lowering personal income exemptions exemptions exemptions and thus requiring an additional additional addi addi- perso persons s to file re re- re turns There was opposition too for a apr pr provision vision that would end the community community com com- ml pr property perty system of filing returns now permitted in eight states Texas states Texas Louisiana Arizona New Mexico Idaho California Nevada Nevada Nevada Ne Ne- vada and Washington Under the finance committees committee's plan the bill which bill which called for a record-breaking record as passed by the the- would house house would have its its' yield boosted to an estimated Approximately of this potential increase was accounted accounted accounted ac ac- counted for when the committee voted Mon Monday ay to lower present income income- exemptions from 2000 to 1500 and from to for single persons An additional revenue would be derived by eliminating the community property returns Equality of Treatment In the past husbands and wives in the eight community property staf states s have been able to divide their income and make separate e returns Thus a man with a salary could file a return n on and his wife could file on on In many cases the system system tem tern brought the aggregate of the separate taxes below what the total would have been under a single return The change does not affect any of the c country except the community community community property states said Ch Chairman Chairman Chair Chair- irman ir- ir man George D. D Ga of the fi finan finance fi- fi nan nonce nance e committee It It putS puts the whole country on the same basis Asked whether the change was satisfactory Senator Connally D. D Texas replied in a drawl It air not You'll hear a lot more about that when it comes to the senate floor As for the the proposed proposed cuts cuts in exemptions exemptions exemptions ex ex- placed highly a Republican can leader said a substantial group in his party would vote against them and Senator Senator- S Clark D. D Idaho said they failed to solve the fiscal problem Majority Would Voul Escape Discussing this part of the committees committee's committees committee's committees committee's com com- plan George said that while additional persons would have to file r returns turns under the lowered exemptions the majority majority ma ma- would not be taxed Only he added would come from the new group of taxpayers The ot would come from persons persons already filing income tax returns returns- The reduction in exemptions would give a major jolt to taxpayers taxpayers taxpayers tax tax- payers in the lower present I brackets For example a single man with witha a 1000 net income would pay 21 under the reduced exemptions compared compared compared com com- pared with 1540 under the house- house approved bill and anCi under pies pres- present pres present ent eat law The percentage increase would be smaller for a single man with a net who would pay and under the respective levies A married man with no dependent dependent de de- pendent and a 2000 net income would pay 42 under the senate committee plan but nothing under the house house approved approved bill or present law A married man with two dependents de de- and a net would pay 58 11 and nothing under the plans in question |