Show S Ue 9 I TilE THE THE excess profits tax which i I the senate and house have extended ex ex- j tended lot for a six Ix month period after I strong administration pressure 1 Is r one of ot the most controversial anc ancI and I little litte known of ot our federal levies 4 j 1 Even the Eisenhower I while Insisting upon it called It Jt itt 4 a necessary r evil j I Here lIere are its basic facts r Who Who pl pays it Less It-Less Less than 12 per cent scent of ot the nations nation's corpo corpo- j 1 rations with taxable income low How much money will be raised b by the six months extension About extension About J million will b be added to the i. i governments till In fiscal 19 1954 I How Ilow do corporations compute tile rth tax tax They They figure earnings dur duro j ding tn Ing 1946 1940 through 1949 and report average earning earnings during the three most profitable years ears of that I stretch three Eighty per cent of that average Is I. normal norma profit congress decided Earnings over that amount are liable to tb the ex excess e excess cess profits tax tu of ot 30 per cent This is U on top of r regular corporate Income income in In- come taxes What is 11 the purpose of the EPT EPT- It was designed to limit the profits of bus businesses Aeries involved in defense 1 i work cy 11 What percentage of ot corporation tax fax receipts comes com from the EPT The The Ways and Means Committee estimated 2 bOBon WBk u cut art of at a total r take of at 23 billion in fn corporate ta taxes 11 como com from the excess profits levy That's about 87 81 per cent tent Wb Why was extension urged tor for what Treasury Secretary George M. M Humphrey called a bad tax It It will wW help belp shrink the deficit of 94 billion a record for the government gov I eminent emment to be in the red Also the administration has bas said it didn't want taxes on business cut before taxes on individual lual Income which are to become lower Jan 1 I. I 1954 Wh Why is b it a bad tax tax President President Eisenhower said the EPT is especially especially es bard on successful small businesses which must depend on retained earnings for growth Assistant As AI Secretary of ot Commerce Craig Crall R. R Sheaffer said the tax purposely hits bits hardest on new and growing enterprises and encourages encourages en en- wasteful management The Post Office Department Is again askin asking congress to grant rant an Increase in postal rates rate in an effort lUo to get the long time long mone money losing service out of the red If U the move is successful heres here's what will happen to mall mail users I 1 A deep pink four cent stamp tamp will wW be required for tor out town town let let- rs The familiar purple three three- center still will b be good for tor town in-town first arst class mall mail I 2 2 Airmail rates will wW go co up from up-from from six to seven cents cent per ounce 3 Book Dook rates will wUl increase from eight to ten cents for tor the first firt pound and four tow to five cents cent for each extra pound 4 4 Varied boosts will wW prevail for tor I different types of 01 second and third I 1 Iau class au mall mail n. n I 1 IThe The man mall I rate reto te increase may eventually become Demme law lav but at the moment congressmen although talking a lot about economy and land balancing the budget show how no signs igns of ot haste baste in putting It into I I effect |