Evening Star Newspaper, May 8, 1942, Page 7

Sales Tax Proponents Spurred by Proposal To Cut Exemptions Other Drastic Plans To Curb Inflation Also Suggested By the Associated Press. A host of new and inflation proposals day on the heels of a sudden Treasury decision to ask Con- gress for a cut in personal in- come tax exemptions. High administration sources said that since one of the purposes of the anti-inflation program is to “soak rastic anti- up” excess purchasing power, con-| sideration had been given to such ideas as a Federal retail sales tax (in addition to all other tax in- creases), doubled social security taxes and compulsory purchases of War bonds. Those steps were advocated pri- vately by some influential adminis- tration leaders before President Roosevelt sent his “cost of living” message to Congress last week. The President did not mention those items, but promised further legisla- tive recommendations “if necessary.” Morgenthau Reverses Stand. That pledge started to take shnpe} yesterday when Secretary of the Treasury Morgenthau, reversing a | previous stand, asked the House ‘Ways and Means Committee to cut personal income tax exemptions. He suggested that the exemption for a single person be cut from $750 to| $600, for a family head from $1,500 to $1,200 and for a dependent from $400 to $300. The Secretary esti- mated that this plan would add $1,100,000,000 to the $7,600,000,000 annual revenue expected from other recent tax proposals. Informed sources said the Treas- ury plan was a compromise of the recommendation of other adminis- tration leaders that the exemp- tions be cut to $500 for single per- sons, $1,000 for family heads and 2200 for dependents. Becretary Morgenthau’s new pro- posal took committeemen by sur- prise, and few were willing to pre- dict what the result would be. Sales Tax Seen Assured. One sales tax proponent said, “This assures a sales tax” because Congress would not dip so deeply merged to- || EVENING STAR, WASHINGTON, McCLELLAN FIELD, CALIF.—America’s fighting men at this Air Force station are “all out” in their effort to help Uncle Sam conserve rubber, gasoline and oil. Every available bicycle in this region was bought up by the military personnel and thou- sands of eivilian war workers immediately after Pearl Harbor. Today, officers and soldiers, men and women, are pedaling their D. C, FRIDAY, MAY 8, 1942 By the Associated Press. The industry that made $1000,- 000,000 worth of wooden and metal furniture last year will be making war goods at the same billion-dollar rate next year, the War Production Board reported today. | Furniture makers already hold $500,000000 worth of orders for Furniture Plants’ War Output In 1943 Estimated at Billion | duced in quantity by metal furniture _ companies includes ammunition boxes, tail and wing assemblies for airplanes, rear fin struts and seating equipment for planes, tanks and ships,” the report said. “The wood-working plants of the industry are to be assigned the task | of building large numbers of way around the military reservation, and to and from their homes to the aircraft shops. Even the commanding officer of the depot does his reservation traveling via bicycle. Officers, men and civilian employes are shown riding bikes to their posts and to work in the new “victory” fashion. —Official War Depcnment, Photo Col. Pugh, at Fallen Corregidor, Served at Fort Myer 3 Years Wife of Member Of Wainwright Staff Lives.in Capital Lt. Col. John Pugh, & member of the staff of Lt. Gen. Jonathan M. Wainwright, now on surrendered Corregidor, is well known in Wash- ington. He was stationed at Fort Myer, Va., when Gen. Wainwright, then a colonel, was commandant of the fort. It was while located at the cavalry post here that Col. Pugh, then a lieutenant, met and married Miss Louise Myers, daughter of George Hewitt Myers, prominent in finan- cial circles here. Mrs. Pugh, who with her 2l%- year-old son David, now resides with into individual income. Anothtr‘ her father here, said today she had | Will Start Today Triduum of Masses i The society also will Mother’'s Day at a A triduum of masses, beginning | breakfast following the 8:15 am. today and running through Sunday, | mass, with Dr. Walter J. O'Connor, | will be held at Immaculate Concep- | economics professor at Georgetown | houses of prostitution in the vicinity | tion Church for deceased as well | University. as guest speaker. *| military production. as living members of the Holy Name | week which follows to enact the observe | the sons of American mothers in communion | our armed forces.” airplane parts and gliders, ammu- | ‘wood>n’ aircraft, which tests have nition boxes, airplane fuel lines and | shown to be ideal for training pur- |other items for the armed lorceg poses.” W. P. B.'s conversion report showe: Lga | tasteys secongio only o, At least three wood-working | furniture plants already are pro- | ducing plane parts of plywood and ultimately 12 or more are expected to be turning out wooden lu'plnnes SPANISH producer of consumers’ goods, is rapidly changing over to “War equipment soon to be pro- Anti-Liquor Blll Backed As Tribute to Mothers By the Associated Press. | Reminding the Senate that next | Sunday would be Mother's Day,| 922 17th St. N.W. Senator Capper, Republican, of Kansas said today that the moth- ers of America would feel happier if they knew that their sons in the armed services were afforded all pos- | sible protection by the Government | “against the insidious influence of | vice and intoxicating liquors.” 00D NEIGHBOR SCIMI. RE. 2943 | Sheppard bill for the protection of ! The bill would prohibit sale of al- coholic beverages and operation of ‘of military camps. X A5 and sub-assemblies, under cone version plans mapped out by W. P. B.’s furniture branch. Other plants | will be making gliders for the air' force, bulkheads for ships and wooden lockers and shelving to re- place the usual metal types. v vhrn is NOT drug_or _ med: It's_a natural mineral water from Hot Springs, Ar- kansas. and tastes even better Ordinary waters ‘vet it helps discharse systemic wastes, neutralize uric-acidity. soothe bladder irritation and stim- ulate kidney function Phone for & case today. Write for a free mk.etR‘HK Because Mt HOT ~ ARKANSAS 904 12th St. N.W. MEt. 1062 | 2 “I know of no better way for Con- | (/ | gress to commemornle Mother’s | ~ | Day.” he said, “than during the 2 JOLLY JIM DAW AND HIS ORCHESTRA 3.5. FRANCIS SCOTTK committeeman said the recommen- | a5t heard personally from Col Pugh dations, if adopted, would Kill senti- | after he wont from Bataan 16 G ment for a sales tax. regidor. She has not heard from Chairman Doughton of the com- | him directly since the fall of Cor- sked which he preferred, a | regidor. LT. COL. JOHN PUGH. —Signal Corps Photo. or lowered exempnons, re- | don't like either.” ‘ Representanve Knutson, Repub- | | lican, of Minnesota, another commit- | teeman, said, “You can bank on it” ‘ that Congress would vote for a sales tax in preference to the low exemp- tions. Representative Reed, Repub- lican, of New York agreed, remark- ing, “You can get too low on ex- emptions and possibly ruin a seg- | ment of society.” | Representative Doughton said it was not likely that any major de- | cisions would be reached today. | “We might pray over this Saturd: | and Sunday,” he remarked, 4 { | Income Hits Record High. Officially, the administration is | opposed to sales taxes, but unoffi- | cially, a large group of high officials believe that under war conditions | there should be such a tax, disguised | as a “war consumption tax.” Perhaps the most controversial of | the other unadopted proposals would | ask Congress to require every one to put at least a fixed portion of his | income—probably 15 or 20 per cent— | into either taxes or bonds. Thus if a citizen’s allotment came to $100 and his taxes were $50 he would be | billed for $50 of bonds. Some ex- | emptions might be allowed for other | PSS PLAZA SPORT SHOP AGENTS FOR A. G. Spalding & Bros. OPEN THURS. 9 A.M. te 9 P.M. Exclusive Agents for |and Marian La Barba, 38, divorced Col. Pugh was stationed at Fort | Myer for three years. He was trans- | ferred to Fort Clark, Tex., in 1938. Col. Pugh and his wife were widely known in equestrian circles. A fine horseman, Col. Pugh had | ing horses Sir Conrad, he took many | ribbons in local horse shows, and later when at Fort Riley, Kans., de- veloped Sir Conrad to such an ex-‘ tent that he was loaned to the the ability to take “in-and-outers” | United States Army team. In 1940 | and make consistent winners of | at Madison Square Garden s“‘ them. Riding one of his outstand- | Conrad won high honors. forms of savings or debt retirement. | The Commerce Department re- | ried last night. ported yesterday that national in-| Mr. Ruggles’ first wife died. The come in March had soared to a rec- | former Mrs. Barba once was the ord high of $8,654.000,000. which was | wife of Billy De Beck, newspaper 21 per cent greater than the total | cartoonist. She had parts in sev- | for March, 1941. | eral motion pictures, Saddlery and Tfl"“ Luggage Repairing of Leather Goods and Golf Bags ZIPPER REPLACING G. 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