| Show I g Asks Income Tax Exemption Slash I Treasury Chief Says Time Has ComeI Come ComeTo I To Set Up Individual Levy To Add in Revenue WASHINGTON May 7 IP Secretary lP-Secretary Secretary of the Treasury Mor Mor- told the house ways and means committee Thursday that the time has now come to lower personal exemptions under the individual income tax to for single persons 1200 1200 for married couples and for each dependent Chairman Doughton boughton D. D N. N C. C I of the committee made public a aletter aletter aletter letter in which said the reductions would produce about of which would come from 6 new taxpayers The letter said that this new increase would be over and above the he asked congress congress congress con con- gress to raise from individuals as part of an overall tax program Present exemptions i are for single persons 1500 for married couples and for dependents Last year ear the seven million in individuals individuals individuals in- in who paid income taxes paid Under any of various plans that have been presented they would pay much more hereafter but some committeemen committeemen committeemen commit- commit have said there was a strong possibility that some of steep surtax rate in increases increases increases in- in I creases would be pared down Doughton told newspaper men that letter proposing proposing proposing propos propos- ing lower exemptions was presented present present- ed to the committee at a morning morning morning morn morn- ing session but did not indicate what reception it received took occasion in the letter to emphasize again agai the need of expanding the social security program and of increasing taxes for that purpose by about 2 a year ear and expressed the hope that the committee would proceed as soon as possible after completing a tax bill to consider that question In presenting the administrations administration's administrations administration's administrations administration's tion's program to the committee March 3 said a further further further fur fur- ther lowering of the personal exemptions exemptions exemptions ex ex- would yield a relative insignificant amount of ot revenue from the earners of ot very low in In- In comes He said then however that if Continued ed on Page Three Column Five I iT TAX AX EXEMPTION SLASH SOUGHT Continued from Page age One he beI believed eved that expenditures expenditure of that group added materially to the danger of ot inflation he would not hesitate to recommend lower exemptions exemptions exemptions ex ex- in spite of the small amount of re en revenue E that would be I produced The treasury has proposed retention retention retention re re- re- re of the 4 per cent norma normal tax but with elimination of the present earned arned income credit and recommended that the present 6 per cent surtax rate on the first 2000 2000 of net income be changed to a minimum of 12 per cent on the first o of net income Surtax Lever Levels Off The surtax increases would result result result re re- sult in doubling ng of surtax revenue on incomes up to the 10 bracket with a gradual levelling levelling levelling level level- ling off until a net income of between between be be- tween to would be taxed 86 per cent instead of the present 65 As an offset to elimination of earned income credit and the higher high high- er surtax rates the thc treasury has proposed new deductions for unusual unusual unusual un un- un- un usual medical expenses the cost of sending children to college and increased domestic expenses where a wife fe as well as the husband has a job One member said that there had been no discussion of President Roosevelt's recent request that individual individual individual in in- incomes be limited to after payment of taxes Treasury statisticians have estimated estimated estimated esti esti- mated that a limit of before before before be be- fore payment of taxes would produce produce produce pro pro- duce |
