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Roosevelt Plans To Veto Tax Proposal;
Watkins Claims Measure Is Inadequate
Plan Falls Far Short Congress Views Rapidly Mounting Nat
Of Treasury's Request Debt Complacently, Professor Explair
By The Associated Press By MARGARET FARMER
WASHINGTON, Feb. 17. -Presi- Suggestig that a pogressive bond buying merely pt
Suggstig tat aproresiveof reckoning."
dent Roosevelt was reported author-Th grea seriousn
itatiely onigh as lannig tovetospending tax "deserves more ThsTresuruss
tatively 31500000as planni g to ve to attention from Congress," Dr. Leon- mendation of a nor
score tat it has some vital loonoe ard L. Watkins of the economics spending tax deserv
andr faitarsoteote Tropholes department said recently that the osconsideration," i
and falls far short of the Treasury's tax bill passed by Congress is "re- eating it as a supplf
request for $10,500,000,000 iunewdgrettable, inasmuch as the country present income tax p
revenue. has definite need of a more adequate The proposed spend
A veto also would nullify Congres- tax program." ied on the amount of i
sional intent to freeze the social se- The new revenue bill approved by spent rather than the
curity payroll tax at the present the Senate and House of Representa- Returns are filled o
levels of one per cent on employers tives, is now headed toward the under the present tax
and employes. A temporary freeze White House. It calls for 2.3 billion ings for insurance,
measure expires March 1. dollars in new taxes, falling short of houses and other deb
The rate then would advance to the administration's request for at programs are exempte'
two per cent, providing an additional least 10.5 billions. "It is," Dr. Watkins;
$1,300,000,000 in annual revenue. "The rapidly mounting debt is a to a sales tax for tw
Decision Surprises Leaders serious matter and it is unfortu- would bring in more re
The President's veto decision sur- nate that Congress views its devel- rates increase as th
Prised Congressional leaders. It may opment with such complacency, spending increases, th
mean also that no new revenue-rais- Dr. Watkins said. hardships suffered by
ing measure will be passed this year. Expenditures of from 96 to 98 bil. groups under a sales tE
Reports were that the President lion dollars are contemplated for the
would object to provisions of the act 1944 and 1945 fiscal years, respec - T b
such as the so-called "timber" amend- tively, he pointed out. Compared to
ment, a gas well depletion clause, a expected revenues of about 41 bil
corporation reorganization provision lions in each of these years on the ,
and other changes of this nature. basis of present taxes, this leaves a App,
Fights Timber Amendment deficit of from 55 to 57 billions each m1 r p
Administration leaders fought a 250 billions by June, 1945.
provision which would prevent the "Though it is not feasible to cover WASHINGTON, Feb.
charging off foil tax purposes of large all of our wartime outlays by taxes, Senate today passed an
losses sustained in "hobby" enter- it seems that Congress is stopping the House a resolution
prises. This amendment would limit short of a reasonable compromise. a $1,350,000,000 United
to $50,000, plus interest and taxes England and Canada are covering tribution to the United
paid on the enterprise, the amount more than fifty per cent of their lief and Rehabilitation
deductible; and then only if a loss expenditures by taxes and we should tion program for the a
had been sustained for five consecu- at least aim at this minimum. I feel in liberated territory.
tive years. that taxes should be raised to the 47 to 14.
The. so-called timber amendment amount Wendell Willkie is advocat- Before approving the
would permit individuals who cut Ing," Dr. Watkins stated. Senate added an amend
their own timber to pay taxes on the "Thus far the Treasury has had ator Willis (Rep., Ind.
basis of the comparatively lower cap- to borrow huge amounts from of any of the funds fo
ital gains levies, instead of including banks. When government securi- religious or political pu
profits in normal income. ties are sold to commercial and But the Senators rej
______aiirFd l RP er.ve. Banks. the banks
1 _
American Tank Wrecked on Beachhead
dona
[is
uts off the day
arlier recom-
re progressive
es more seri-
.e said, advo-
leent to the
program.
ing tax is lev-
nicome actually
total income.
ut exactly as
law, but sav-
payments on
t and savings
d.
said, "superior
'o reasons. It
venue and the
e amount of
us minimizing
lower income
ax."
sses
ttiolti
1I7-(MP-The
ndl returned to
mi authorizing
d States con-
d Nations Re-
n Administra-
id of civilians9
The vote was
-measure, the!
dment by Sen-
) barring use
)r educational,
uposes.
ected amend-
I
a
4
i
1
New Air Force
To Carry Fight
Home to Nazis
Reorganized U.S. Ninth
Squadrons Unite with
British Ground Forces
LONDON, Feb. 17.-(A--The Su-
preme Allied Command disclosed to-
night an American aerial spearhead
for the coming battle of Germany, a
full-fledged new tactical air force
which, with the RAF's ground sup-
port units, forms the Allied Expedi-
tionary Air Forces under Air Chief
Marshal Trafford L. Leigh-Mallory.
U.S. Ninth Enlarged
The new American group is a re-
organized and enlarged U.S. Ninth
Air Force, the unit which helped sup-
port the British Eighth Army against
Marshal Rommel's troops in Africa
and which raided Rome and the Ploe-
sti oil fields in Rumania. It has the
same commander, Maj. Gen. Lewis
H. Brereton, 53, and much of the
same staff, but with the force trans-
formed from primarily heavy bomb-
ers to lighter planes for the close
support of Allied invasion troops.
Shifted in Secrecy
The organization was shifted here
in secrecy from the Mediterranean
theatre. The Ninth's original Liber-
ator bombers and fighter planes were
merged into the new Allied Mediter-
ranean Air Command, and the newly
implemented Ninth has been operat-
ing from England anonymously, al-
though it was more or less an open
secret pending competion of the Al-
lied Second Front Command.
Two American soldiers eye a wrecked American tank, knocked out of action during heavy fighting
near Cisterna, on the Allied beachhead south of Ro me.
Reconstruction PROPOSAL SHELVED:
Course Will Be State Represe
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merely credit the government with
an equivalent amount of purchas-
ing power. No money is taken out
of circulation and more funds are
created, increasing inflationaryI
pressure on prices," he explained.
In answer to the question con-
cerning the individual's bond-buying1
in the finance program, Dr. Watkins1
pointed out that such borrowing,
while necessary under the present
set-up is "inferior to taxation, sincet
it leaves a heritage of debt." A debtt
so large as the one we are acquiring
will necessitate high taxes for an
indefinite period after the war andf
will also be a handicap to the gov-
ernment at the end of the war when
it may be necessary to continue bor-
rowing in order to cover the larget
outlays needed for demobilizationt
and reconstruction. Taxes pay for
the guns and ships right now and
ments propsed by Senator Reynolds,
(Dem., NC) which would have re-
duced the American contribution to
$350,000,000, and have placed the
American Red Cross in charge of ad-
ministering the fund.
Reynolds shouted that he was not
willing to put $1,350,000,000 in the
hard-earned money of the weary tax-
payers of this country into the heads
of a lot of foreigners to do with as
they wish."
The Senate adopted amendments
terminating the authorization June
30, 1946; stipulating that none of the
funds could be spent for relief within
enemy-occupied territory; defining
rehabilitation as no more than relief;
and barring UNRRA from making
commitments beyond its appropria-
tions.
Union Wins Smith's Derby
By Buying War Bonds
NEW YORK, Feb. 17.--VP)-Alfred
E. Smith's brown derby, famed in
song, story and politics, now is a
$150,000 shelf-piece.
A union which had won it by buy-
ing $150,000 worth of war bonds,
returned it to the former Governor
of New York today.
"I'm going to put this derby some
place on a shelf," said Smith, "and'
when people come in I'm going to
point to it and say, 'There's a $150,-
000 hat.'"
Retained by U'
An interdepartmental course, So-
cial Studies 93, will be continued for
the spring term, Prof. Lionel H.
Laing of the political science depart-
ment announced recently. The course
is a study of problems facing the
world during war and post-war re-
construction.
The course affords two hours
credit to all students except fresh-
men. President Alexander G. Ruth-
ven and 22 professors from the polit-
ical science, history, sociology, eco-
nomics, business administration, ge-
ology, public health and engineering
departments comprise the staff of
lecturers.
The course for the spring term will
have three major divisions: 1. Soci-
ety in conflict, 2. War problems and
war aims, and 3. Problems of peace,
reconstruction and rehabilitation.
This program parallels the one of the
fall semester. The enrollment in the
fall term included almost 100 under-
graduates from the literary and en-
gineering schools, public health, for-
estry and business administration.
Counsel Quits
Paternity Suit
LOS ANGELES, Feb. 17.-(AP)-Joan
Berry's counsel withdrew today from
her paternity suit against Charles
Chaplin and a few hours earlier an
attempt by the actor's lawyer to have
it dismissed was refused by a super-
ior court judge.
Declaring Miss Berry's attorney
should be given written notice of in-
tention to move for dismissal, Judge
William S. Baird denied a motion by
Loyd Wright based on a stipulation
that the case would be dropped if i
blood test failed to indicate Chaplin's
parentage of the four-months-old
child.
The blood test had indicated that
Chaplin was not the child's father.
Irwin wrote that the result of the'
blood test "in no way disturbs my
confidence in Joan's sincerity."
LANSING, Feb. 17. - (') -- The
House of Representatives today de-
feated the Child Labor Bill, and Rep.
George N. Higgins, Ferndale Republi-
can who was its most active propon-
ent in floor debate, said he would not
renew the fight for it.
Bill Gets 43 Votes
The bill mustered only 43 of the
51 votes needed for adoption, while
40 votes were cast against it, folldw-
ing bitter exchanges between its
friends and foes.
Most of the latter professed to
have no objection to bills for the
protection of children in the labor
market, but contended the measure
under consideration had been so
thoroughly amended few legislators
understood it.
The lawmakers approved another
$29,000,000 of appropriation bills in
the $134,616,294 state budget, and
amended in committee and on the
floor a Senate-approved bill to facili-
tate the soldier vote.
Election Date Advanced
The bill advances the date of the
primary election this year to July
11, instead of the normal September
date, so that servicemen and women
at distant points may send absentee
ballots to Michigan.
The House Elections Committee
struck out a Senate approved
amendment which would have re-
quired each county political con-
vention to apportion to its wards,
precincts, townships and districts,
the, county's delegate strength in
the state convention, a change
which members said they suspected
might be related to a fight in Kent
County between forces loyal to and
those opposing Frank D. McKay of
Grand Rapids, Republican national
committeeman.
Roll Call Taken
In vain, the child labor bill's op-
ponents maneuvered to avoid a rec-
ord roll call in which they would be
forced to take a stand and sought
to kill it through voice vote.
At one point, Rep. Howard R. Car-
roll, Van Dyke Republican, taunted
them: "I don't know why some iem-
Child Labor 1illby 8 Votes
IflRILYH SHOPPE
FORMRLS
FOR
V-BRLL-
A Lovely New Shipment
LACES
NETS
CREPES
JERSEYS
bers are afraid to have a record vote
go on the (voting) machines. Let's
not do by indirection what we are
afraid to do by direction."
The measure was described by its
friends as an effort to make more
stringent the regulations surround-
ing the employment of minors, with
a war-time exemption clause.
_ Ii
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