Historical Perspectives on the Federal Income Tax |
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76th Congress, 3d Session, House of Representatives, Report No. 2491, June 10, 1940. Congressman Doughton, Chairman of the Committee on Ways and Means. (H.R. 10039)“The plan adopted in this bill is this: We are going to change the definition of “taxpayer”. Everybody is going to be a taxpayer who has a net income of $500 or more. It makes no difference how old one is or where he is or what his circumstances are….He has been elevated to the dignified role of a taxpayer.” Congressional Record Volume 90 (1944), House- May 8, page3982 Congressman Jenkins of Colorado
“Discussion of Principal Income Tax Changes”, (a) “Lowering
of personal exemption”
“Title 1 of the bill lowers the personal exemption
from $1,000 to $800 in the case of single persons and from $2,500 to $2,000
in the case of married persons or heads of families. This will make
approximately 2,190,000 new taxpayers.
(d) “Requirement for filing individual income tax returns”. Under
existing law, an individual, if single, is not required to file an income-tax
return unless his gross income is $5,000 or more or his net income is $1,000
or more….The bill requires a return from a single individual if his gross
income is $800 or more and from a married individual if (1) such individual
has a gross income of $2,000 or more….Many persons have failed to file
returns upon the assumption that their income was insufficient, when, in
fact, they were liable for the filing of a return and payment of a tax.
This change will require approximately 8,000,000 additional returns, and
it is believed will result in the collection of substantial additional
taxes. It is estimated that under existing law approximately 7,5000,000
individual returns are filed.” (This requirement doubled the number of
persons subject to the income tax)
Congressional Record-Senate Volume 88, October 6, 1942, page 7797.
Senator George of Georgia, Chairman of the Senate Finance Committee
“The bill further broadens the individual
income-tax base by reducing the personal exemption for a married persons,
or head of a family, from $1,500 to $1,200, and in the case of a single
person from $750 to $500….It is estimated that the reduction in personal
exemptions will add approximately 7,000,000 new taxpayers….The bill levies
a victory tax of 5 percent on all income in excess of $624 received during
the year by individuals from salaries, wages, and other compensation for
personal services, dividends, interest, annuities and net profit from business
or profession….It is estimated that this tax will add an additional eighteen
and one-half million taxpayers, who otherwise would pay no tax directly
to the Federal Government. Without the victory tax, it is estimated,
there will be twenty-seven and one-half million taxpayers. Thus,
under the regular income tax and the victory tax there will be a total
of 46,000,000 taxpayers.”
Congressional Record-House Volume 88, July 16, 1942, page 6254.
Congressman Halleck of Indiana
“The gentleman, who has made a splendid statement,
referred to the fact that this bill would affect 30,000,000 taxpayers.
I take it the gentleman refers to the direct effect upon the taxpayers
in the number of 30,000,000, because, as I view it, this tax bill, if passes,
will directly and indirectly affect every man, woman, and child in this
country.”
Congressional Record-House Volume 88, July 17,1942, page 6348.
Congressman Whittington of Mississippi
“Additional sources of revenue must be utilized.
Congress should take the lead. All citizens should participate in
the burdens of taxation. The tax base should be broadened as provided
in the bill. Every citizen should have a stake in the Republic.”
Congressional Record-House Volume 90, May 3, 1944, page 3979, Congressman
Jenkins of Ohio:
“There is another reason why on the 15th of
March last or about the 15th of March there was so much unrest in the country.
That was due to the fact that we had put into effect the withholding tax.
The withholding tax made millions of taxpayers who had never been taxpayers
before….Up to that time many people escaped taxation, not willfully, maliciously,
and illegally, but the tax structure was such that they were not brought
within the preview of the law….
….Not only our experts and the Treasury experts
but other experts outside say that if we do that we are going to relieve
from taxation 11 or 12 million people who are now paying taxes and who
are making no strenuous objections to it.”
Congressional Record-House Volume 90, May 4, 1944, page 4016, Congressman
McLean of New Jersey:
“So the Committee on Ways and Means proceeded
to ‘provide simplification without substantially changing the number of
taxpayers or the revenue yield under the existing law.’…The yield from
every recent enactment has been far in excess of the estimates. This
is particularly true under the pay-as-you-go withholding plan….
…This estimate covers only 41,000,000 taxpayers
and does not include some additional amount that will be received from
11,000,000 Victory-tax payers with incomes above $500 who will be covered
into the new system….Page 4017
Whenever a manipulation with rates in a tax bill begins with lowering
exemptions and increasing rates it is fair to assume that an increase in
yield is being planned…”
“The Victory Tax will greatly increase the number
of persons who will pay a direct tax to the Government- a direct contribution
to the war effort. It is estimated that under the regular income
tax there will be 27,500,000 taxpayers, and with the Victory Tax there
will be approximately 46,000,000 taxpayers.”
Congressional Record Volume 88 (1942), House- October 20, page 8468, Congressman
Doughton of North Carolina, Chairman of the House Ways and Means Committee.
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