WAR SHADOW.

Auckland Star, Volume LXXI, Issue 127, 30 May 1940, Page 8

WAR SHADOW.

U.S. TAX INCREASES. Army And Air Expansion Programmes. HUGE EXPENDITURE PLANS. Iniliil l'riss Associntion. — Copyright. (I'ccPlveil 1 ii.m.) WASHINGTON". May 20. War Department. exports conferred with President Roosevelt and outlined a supplemental programme enabling expansion of the Army air corps and troop mechanisation to be carried out at a cost of 000,000,000 to 1,000,000,000 dollars. This is additional to the 3.297,000.000-dollar programme already before Congress. Details are not disclosed, but it is indicated that over .">00.000,000 dollars are applicable to the Army air corps alone. Meanwhile the Tfou-e of Representatives Ways and Means Committee has drawn up a tax programme estimated to yield (i01J.000.000 dollars annually. The main features are a 1(1 per cent sU|M'r tax. increased taxes on spirits, petrol, cigarettes, beer, stock, bond tran.-fers. and theatre tickets. President I'oosevelt has appointed a National Defence Commission of seven members under the 1010 Defence Act. The House of Representative* lias passed the bill expanding the United States Naval Air Forcc to at least ](1,000 aeroplanes. The niea-ure also provides for accelerating warship construction.