| Show S tIu I THE TUE rilE excess profits prom tax which the senate and house have extended extended ex ex- tended for tor a six month period after strong trong administration pressure is isone isone one of the most controversial and little tittle known of our federal levies Even the Eisenhower administration tion while upon it called it a necessary evil Here are ArP It Its basic facts 1 I Who p pays YI It Less It-Less Less than 12 per percent percent cent of ot the nations nation's corporations corporations corpo corpo- rations with taxable income How much money will be raised by the six months extension extension About About million will be added to the governments government's 1 till In fiscal 1954 1054 How do corporations compute the tax They tax They fleure earnings dur dur- ing 1910 through 1049 1949 and andreport report report average earnings during the three most profitable years yearl of ot that stretch three Eighty per cent of that average is normal profit congress decided Earnings over that amount are liable Hable to the excess ex ex- excess cess profits tax of ot 30 per cent This Is on top of regular corporate Income income In in- come taxes What is li the purpose of the EPT EPT- EPT It was designed to limit the profits of businesses involved in defense work What percentage of corporation tax receipts comes from the EPT the The Ways Way and Means Committee estimated 2 billion out of a total take of 23 billion in corporate taxes come from the excess profits profit levy That's That about 87 per cent Why was for what Treasury Se Secretary George M. M Humphrey called a bad tax It It will help shrink the deficit of 94 billion a record for tor or the government gov gOY to be In the red Also the administration has said it didn't want taxes on business cut before taxes on individual Income which are to become lower Jan 1 1 1954 Why is It a bad tax tax President President Eisenhower said laId the EPT is especially especially es hard on successful small businesses which must depend on tm retained earnings for growth Assistant Assistant As As- Secretary of Craig R. R Sheaffer said the tax purposely hits hardest on new and growing enterprises and encourages encourages en en- wasteful management The Post Office Department is again asking congress to grant an increase in postal rates in an effort to get the time long money losing service out of the red If U the move is successful heres here's what will happen to mail mall users I 1 A deep pink four tour cent stamp will be required for out out-of town out town let let- The familiar purple three three- center still will b bl be good for town in-town first class mall 2 Airmail rates will go up from up-from from six to seven cents per ounce 3 3 Book rates will increase from eight to ten cents for tor the first pound and four tour to five cents for each extra pound 4 Varied boosts will prevail for different types of ot second and third class mail mall The man mall rate Increase may eventually become law but at the moment congressmen although talking a lot about economy and balancing the budget budge show no signs of haste baste in putting It into effect |
