For 1946

The deepest surgery ever practiced on U.S. taxes--the slicing off of $5.9 billion --was completed without fuss or flowers. For what once would have been considered a miracle of scalpel work, Congress engaged in a minimum of consultations beforehand, a minimum of self-congratulation afterward. The taxpayer, though assured the operation had been a success, felt hardly better at all.

For businessmen, the 1946 tax cuts will provide $3,136,000,000 of relief by eliminating all excess-profits taxes, by reducing corporation income-tax rates by 2 to 4%. This will give industry a cushion against the rising pressure between price ceilings and labor's wage demands, and should help stimulate reconversion and re-employment. But out of every dollar of profit over $50,000, business concerns will still pay the Government 38-c-.

For individuals, the new bill extends the $500 exemptions for the taxpayer and for each dependent to normal as well as surtaxes, thus eliminates all income taxes for 12,000,000 citizens who have been paying small amounts. It also decreases the surtax rate, provides a 5% overall reduction of the tax besides and thus reduces total individual income-tax payments by $2,644,000,000. But the 36,000,000 citizens who will still pay taxes will still pay vastly more than before the war. The 1946 scale, computed on net income after deductions for expenses, charity, interest, etc.:

Net Single Married Man Income Person Two Children

$2,000 $285 none 3,000 484 $190 4,000 693 380 5,000 921 589 6,000 1,168 798 8,000 1,719 1,292 10,000 2,346 1,862 15,000 4,270 3,638 20,000 6,645 5,890 50,000 25,137 24,111 Congress also repealed the use tax on automobiles and boats, which cost the public $140,000,000 a year in wartime. Left for future bills were repeal of the high excise taxes on liquor, jewelry, furs, etc.

This file is automatically generated by a robot program, so reader's discretion is required.