Show ECONOMIC highlights industrial news review the senate has approved and returned turned to the house for possible a 1 amendment men dment the toughest tax ta x bill in american history if it passes in its present for mand the odds are much against any major changes the american people next year will really learn at first hand just how incredibly modern modem war is the bill is designed to raise 3 more than the bill originally approved by the house and it plans to raise it partly by reaching down into income levels which have never been subjected to direct federal taxation before most important change in the senate bill over the house hou s e bill was the provision dropping i income acome tax exemptions to 1500 for f or married persons previous exemption was 2000 and to for single persons previous exemption was this change alone according to treasury experts is expected to yield an additional annually it is a change which has long ong been advocated by economists who believe that the burden of gov crement cost is now so great that the middle and higher income brackets can no longer pay it thus they reason the solution is to make maka the lower brackets feel the bite of 0 taxation too this change was suggested by president roosevelt when the tax bill was still before the house the house revenue committee refused to adopt it it is therefore ligety like ay iy that a strong effort will be made in the house now to up the exemption level I 1 the normal rate of income taxa tiong per centis cent is retained however surtaxes sur taxes will be imposed in far lower brackets than ever before the surtax rates are very high ranging from 10 per cent which must be added to the normal 4 per cent in the lowest brack ets touched and ir ranging ng ang up to 31 81 per cent in the top brackets the existing normal corporation taxes will be retained and in addi tion surtaxes sur taxes of 6 per cent on the first of net income and 7 I 1 per cent on income above that amount will be levied further excess corporation profits will be hit hard first of the excess pro fits will be taxed 35 per cent as against the present rate of is 25 per cent the rate will go up until it reaches 60 per cent on excess profits over present rate at that level is 50 per cent ceni lastly the bill levies a number of so called nuisance taxes taxes which fall into the sales and excise classifications there will be a 7 per cent excise tax on automobile manufacturers plus a 5 annual use tax on all automobiles a provision which amounts to a federal car license fee wine taxes will be almost doubled double dand and hard liquor taxes will be upped from 3 to sa 4 a gallon ten per cent taxis taxes s will be levied on local phone bills theatre tickets radios and other musical instruments sporting goods household equipment photographic apparatus pa ratus etc etc heavy as this bill is few believe that it will prove adequate soon our arms spending alone will reach three billion dollars a ly as much as the new bin bill is designed to raise in an entire year total arms and aid to io democracies spending will probably reach and perhaps surpass depending on how long the war lasts many an authority is convinced that this bill is only a taste of what is to come command and that next year or the year following the congress may ha haac 11 to pass another tax bill w which h ich W will 1 make this one seem mild by comparison |