lncome Tqx Ouflook-Personql ond Corporqte

Here are a few facts concerning the income tax outlook for the near future, both individual and corporate.

When President Eisenhower and Treasury Chief George Humphries were making their drive before Congress to keep the excess profits tax alive through the current year instead of allo'iving it to expire on July 31, they practically promised not to ask for another such extension. So, it is about as certain as anything can be in Washington, that the heavy tax burden will expire on the 31st day of December, 1953.

ft was definitely understood at the same time that they will not ask for another delay in personal income tax relief, scheduled by the present law for the first df 1954. It is practically certain that Congress will not of its own accord suggest such postponement, with another election coming up next year. So we can look with comparative certainty for relief beginning the end of this year for excess profits tax payers, and for individual income tax payers.

According to a published report from an income tax authcrity, the personal income tax between 1953 and 1954 rvill work as follows: A married man with two children and an income of $10,000 a year pays $1,527.60 thls year, but will pay only $1,372.n in 1954. An unmarried man with an income of $5,000 pays $911.40 this year, but rvill only pay $818.00 in 1954. A married man with two children and a $20,000 income will pay $4,620.00 this year, but next year will get off with $4,124.00.

There are some very important cuts in government income that are due to be made according to present larvs early next year, wlrose fate it is much too early to estimate as yet. A scheduled drop in regular corporate tax rates from 52 percent to 47 percent is due April 1, 1954. Also scheduled to terminate by law on April 1, next year are scores of excise levies on things ranging all the wav from auto to liquor and tobacco taxes.

The scheduled drop in the corporate rate u'ould cost the government about two billion dollars a year, and dropping those excise taxes would cut another billion from the national income. President Ike asked Congress this year to put ofi both those scheduled tax cuts indefinitelv, but they refused to agree at that time, and what cornes next rvhen the cuts become imminent, no one can guess' The President has suggested he would like a modified excise tax system to succeed the present one. But the Congress and the people are mighty tax-conscious, and PostPonement