| Show New Tax Bill Will Give Americans Taste Of High Cost of War Toughest Tax Bill in History Approved by Senate The senate has approved and returned to the for possible the toughest tax bid in American If it passes in its present form and the odds are much against any major changes the American next will really learn at first hand just how incredibly costly war The bill is designed to raise more than the bill approved by the And it plans to raise it partly by reaching down into income levels which have never been subjected to direct federal taxation Tax Exemptions Favored Most important change in the senate bill over the house bill was the provision dropping income tax exemptions to for married persons exemption was and to for single persons exemption was This change according to treasury is expected to yield an ad-I It is a change which has long been advocated by who believe that the burden of government cost is now so great that the and higher income brackets can no longer pay they the only solution is to make the lower brackets feel the bile of taxation This change was suggested by-President Roosevelt when the tax bid was still before the The house revenue committee refused to adopt It likely that a strong effort will be made in he house now to up the exemption The normal rate of income taxation 4 per cent is surtaxes will be imposed in far lower brackets than ever The surtax rates are very ranging from 10 per cent must be added to tho normal 4 per in the lowest brackets and running up to 81 per cent in the top The existing normal corporation taxes will be retained in surtaxes of 6 per cent on the first of net income and 7 per cent above that will be excess corporation profits will be hit First of excess profits will be taxed 35 per as against the present rate of 25 per The rate will go up until GO per cent on excess profits over Present rate at that level is 50 per Nuisance Taxes the bill levies a number of so-called taxes taxes which fall into the sales and excise There will be a 7 per cent excise tax on automobile plus a annual use tax on all automobiles a provision which amounts to a federal car license Wine taxes will be almost doubled and hard liquor taxes will be upped from to a Ten per cent taxes will be levied on local phone theatre radios and other musical sporting household photographic Heavy as this lax bill few believe that it will prove Soon our arms spending alone will reach ai month nearly as much as the new bill is designed to raise in an entire Total arms and aid to democracies spending will probably reach and perhaps surpass depending on how long the war Many an authority is convinced that this bill is only a taste of what is to come and that next year or the year the congress may have to pass another tax bill which will make this one seem mild by |
