TAX RATE 30 PER CENT!Luxury, Income Tax Increase
WASHINGTON, D.C.—The Administration today asked Congress for increases in the tax rates on so-called luxury items as part of a plan to add $10,650,000,000 to the annual revenue collection. Luxuries such as liquor, beer, soda pop, gum, and tobacco along with travel would have dramatically higher taxes under the plan; one drink of liquor would have a tax of twelve and half cents, for example. Additionally, the Victory Tax would be repealed and merged with the personal income tax increase. The personal income tax rate would increase from the current twenty per cent withholding on a graduated scale up to as high as thirty per cent for some income levels. Corporate taxes would increase from thirty to fifty per cent. The proposed revenue program is $1,500,000,000 below the previously stated goal. Treasury Secretary Henry Morgenthau made the request before the House Ways and Means Committee.