INCOMES IN U.S.A.

Auckland Star, Volume LXXIV, Issue 42, 19 February 1943, Page 4

INCOMES IN U.S.A.

Roosevelt Urges Super Tax On All Over 25,000 Dollars

WILL RESCIND RECENT ORDER

Rec. 2.30. WASHINGTON, Feb. 18.

President Roosevelt has written to Mr. Doughton, chairman of the House Ways and Means Committee, urging Congress to levy a special super tax on all net incomes above 25,000 dollars. He promised that if such a tax were levied he would immediately rescind the executive order limiting incomes to 25,000 dollars after taxes are paid. Mr. Roosevelt asked that such special tax be levied on all excess income regardless of its source, including income from securities at present exempt. He added that if Congress disapproved the Treasury recommendation of a 100 per cent tax he hoped Congress would impose a minimum tax of 50 per cent with steeply, graduated rates to 90 per cent. . , The legality of his executive order was attested by the Attorney-General before it was issued, said the President, who explained that the regulation was so worded that it affected only gross salaries exceeding 67,20u dollars which, after the payment of taxes, were reduced to 25,000 dollars not. He expressed the opinion that it was a gross inequity-for a man to receive a salary exceeding 67,200 dollars while the Government was drafting men into the armed foi for 600 abllars a year. He also believed it a gross inequity that a corporation president should receive a salary of 500,000 dollars a year while workers in the same corporation were denied increased wages under the provisions of the law.