1931 Like 1930

Citizens this year will pay no higher Federal taxes on their 1931 incomes than they paid last year on their incomes of 1930. Such was the first major decision reached last week by the House Ways & Means Committee now drafting legislation to up taxes to balance the budget. Against a retroactive tax bill as recommended by the Treasury both Democrats and Republicans, acting separately, set their faces. If this policy prevails in Congress, on

March 15 taxpayers will use the existing rates and exemptions to figure their debt to the Government. The new and higher rates, when enacted, would be first applicable to 1932 incomes.

Welcome was this news to all citizens and corporations who had generally expected forthcoming tax increases to be levied on their 1931 incomes. Presidential politics played its part in deterring Congressmen from proposing new income tax burdens for the electorate until well after the campaign and election.

After two weeks' hearings the Ways & Means Committee put aside partisanship, temporarily, when the Democratic majority invited the Republican minority in to "cooperate" on the tax bill's drafting. The committee was apparently inclined against lowering current exemption levels to include more taxpayers as the Treasury wanted. Among the novel taxes under consideration for inclusion in the bill were: 5% on electric current; 2-to-5% on gas consumption; 5% on petroleum; 10-c- per month on all telephone sets.

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