The Pittsburgh Press (September 17, 1941)
Everyone affected –
SENATE PASSES HUGE TAX BILL
…
Record $3.5 billion levy awaits signature
…
Washington, Sept. 17 (UP) –
The Senate today completed Congressional action on the $3,553,400,000 tax bill, the steepest in American history, and sent it to the White House.
Senate approval came by voice vote after 45 minutes of discussion, devoted chiefly to an explanation of changes made by Senate-House conferees.
Only the formality of President Roosevelt’s signature remained before the measure, affecting every American, becomes law.
On Oct. 1, the levying of an additional annual $1,026,700,000 in new excise taxes will start. On March 15 next year, approximately 2,275,000 new income taxpayers will help foot an added individual and corporate income tax bill of $2,526,700,000.
Current levies and the new tax bill are estimated to yield approximately $13 billion annually toward paying the mammoth cost of defense. Even so, the Treasury will be $8 billion or more in the red next year.
Final Congressional action came on Senate adoption of a conference report on the measure which started through the legislative process more than six months ago. Another new tax bill, concerned chiefly with legal procedures and handling income taxes in the community property states, is scheduled to come before Congress soon.
New individual income tax revenue will come from stiff surtaxes on the lower and medium brackets, and from reduced personal exemptions.
With personal exemption for married couples reduced to $1,500 and for single persons to $750, and a surtax starting at 6.034¢ on the first dollar of taxable income, persons who this year laid nothing will find themselves paying as much as $60. Those who have been steady contributors to the Treasury may find their bills multiplied two to eight times.
Phones, autos taxed
About one-third of the new money will come from excise levies – the “nuisance taxes” which are estimated to yield some $3 million a day. These imposts affect a wide variety of articles and services.
Everyone will find a 6% levy on his monthly telephone bill for the first time. Every motorist will have to pay a $5 federal fee next year to use his auto. The buyer of a new radio will indirectly contribute 10% of its cost to the United States. The levies on liquors, wines, playing cards and numerous other favorite subjects of taxation will be increased.
The bill reaches into the pocket of the $15-a-week soda jerker for new taxes. His share, however, is only $1 a year and he may pay it in installments, 25¢ every three months, if he prefers.
Economy attempted
The bill also initiates an attempt to economize in non-defense spending of the federal government. It creates a committee which includes 12 members of Congress, the Secretary of the Treasury, and President Roosevelt’s budget director.
These men are given instructions to study federal expenses and recommend reductions. The Congressional members will be drawn from the taxing and appropriating committees, so that their recommendations will bear great influence with Congress.
The bill passed the House Aug. 4 by a 242–160 vote. The Senate approved it Sept. 5, 67–5. Yesterday the House approved the conference report by voice vote.