The Key West Citizen Newspaper, January 9, 1953, Page 7

Excess Profits Taxes Likely « |Six-Nation Army Plan Under To Be Allowed To Die June 30\Fire By French De Gaullists By CHARLES F. BVEALNJIG Veterans on the House Ways and Means Committee today predicted that excess profits taxes, how yielding about 2% billion dollars a@ year, will be allowed to expire June 30. But Rep. Eberharter (D-Pa), a sponsor of the tax, forecast a fight by some Democrats to ex- tend it. The tax, which can run the @overnment’s take up to 82 per cent of business profits, was im- ea shortly after the Korean ‘ar started in mid-1950 to help Pay for defense expansion and diminish any war profiteering. The present law carries an automatic June 30 expiration date. Congress can extend the ‘contro- Versial tax as is, rewrite it or simply let it die. Chairman Reed (R-NY) of the House Ways and Means Commit- tee, where all tax legislation must start, already has called for “a Matural death.” He spoke against what he called the !aw’s throttling effect on business, and unfair, arbitary and discriminatory tax provisions. Two other veteran Republicans n the committee, Representatives Kean (NJ) and Simpson (Pa), said in separate interviews today they share a view the tax hurts rather than helps the economy—and will be dropped. Rep. Martin (R-Ia) said he was “very strong” for dropping it. They picked up support from Sitaatincalihas obeiietinigllccnsatipeeaigicad Your Grocer SELLS that Good STAR * BRAND AMERICAN COFFEE and CUBAN -—TRY A POUND TODAY—— some Democrats. Rep. Mills (D- Ark), a strong backer of the pres- ent law, told a reporter he prob- ably will favor letting it die be- cause of inequities. Many of the largest corporations benefiting from defense contracts are escaping the tax due to special exemptions, while many smaller firms are being penalized, . Mills protested. ae Rep. Dingell (D-Mich) said he favors tax relief for ‘the little man” more than for. bysiness but probably will go along ‘with the jmove to let the excess profits tax die, Reed, Simpson and others agreed that individual income tax payers should be given some relief at the same time. The excess profits tax is piled on ‘top of regular corporate income taxes like this: The normal tax takes 30 per eent of income up to $25,000; a surtax takes 22 per cent of all income over $25,000—a total of 52 per cent; then an additional 30 per cent levy is imposed on income determined to be excess profits. Actually, no one knows just how many corporations are paying ex- cess profits taxes. A revenue bu- reau breakdown won’t be com- pleted for several months. The best guess from congression- al staff experts is that about 70,900 of roughly 350,000 tax-paying busi- nesses are being tapped under the excess profits provision. Committee members generally agreed there: are“inequities in try- ing to apply the present excess Profits levy to all types of busi- nesses, with. widely varying opera- ting conditions. But Eberharter said these in- equities should be corrected. He said an effort definitely will be made to extend the law. wesc Overseas Transportation t FIGHT INFAN PARAL JANUARY 2-31 Company, Inc. Fast, Dependable Freight and Express Service { between MIAMI AND KEY WEST Also Serving ALL POINTS ON FLORIDA KEYS Between Miami and Key West Express Schedule (No Stops En Route) LEAVES KEY WEST DAILY (EXCEPT. SUNDAYS) at 6:00 P.M, Arrives at Miami at 12:00 o'clock Midnight, LEAVES MIAMI DAILY (EXCEPT | SUNDAYS) at 12:00 o’clock Midnight and arrives at Key West at 6:00 o’clock A.M. Local Schedule LEAVES KEY WEST DAILY (EXCEPT SUNDAYS) at 8:00 o’clock A.M. end (Stops At All Intermediate Points) arrives at Miami at 4:00 o’cleck P.M. P.M. LEAVES MIAMI DAILY i8XCEPT SUNDAYS) at 9:00 o'clock A.M, and arrives at Key West at 5:00 o'clock Free Pick-Up and Delivery Service FULL CARGO INSURANCE MAIN OFFICE and WAREHOUSE: Cor. Eaton and Francis Ste. DIAL 2.7061 FOR HOME or COMMERCIAL USE... We Are Prepared To Furnish You With Clear, Pure Cube »» Crushed ICE Thompson Enterprises, Inc. (ICE DIVISION) DIAL 2-6831 KEY WEST. FLORIDA | PARIS —European federalists , counterproposal which would in ef- seek means to counter a danger-|fect strip such a central adminis- ous doublepronged offensive by |tration of any real power and en- followers of Gen. Charles de Gaulle | trust Europe’s future to a director- against plans for a united West|ate of prime ministers. Europe and a six-nation army. The Gaullists have opposed both The two-way assault developed | the European unification and army as the Gaullists won new political |plans in their present form but power by boosting Rene Mayer/|their opposition now appears into the premiership of France. | more powerful because of the mar- The first indication of the .of-|gin by which the French National fensive came Wednesday whén De| Assembly confirmed Mayer as Gaulle’s Rally of the French Peo- | premier. ple (RPF) backed Mayer in re-| Needing 314 votes—a bare ma- turn for his promise to reopen |jority—the Radical Socialist (con- negotiations on the delicately bal-|servative) leader won confirma- anced European Army Treaty that | tion 389-205 over Socialist and com- would enlist West German. man-|munist opposition. But 84 of his power in a common, single-uni-| votes came from the RPF and form army. | without them his bid apparently The second prong developed in| would have failed. Strasbourg, where delegates of six Political observers said the West European nations began de-|army plan faces at least further bate on a rough draft of a plan|delay and probable French de- to establish joint executive, legis-| mands that clauses be added to lative and judicial’ bodies for|meet Gaullist objections that the France, West Germany, Italy, Bel- | pact fails to respect the honor and gium, The Netherlands and Lux-| unity of the French Army. embourg. The treaty, hammered out in Michel Debre, RPF member ap-; months of negotiations, is de- parently expressing many of De |s d to place trouns of the same Gaulle’s own ideas, advanced a|si nations, now discussing unifi- cation at Strasbourg, under a uni- fied command, So far, none of the | six have ratified. the pact but West Germany’s Bundestag is expected to reach a final vote this month. In Bonn, however. 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