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THE GENERAL C O U N S E L OF THE
TREASURY
WASHINGTON
JUL 201343
Dear Marriner:
Pursuant to our telephone conversation
this afternoon, I am sending you the three
requests for information and data which I
received from Colin St am, Chief of Staff of
the Joint Committee.
Federal Reserve System,
Federal Reserve Building,
Washington, D.C.
F o r m 10
Joint Committee on
internal Revenue
Taxation
REQUEST FOR DATA AND INFORMATION
CONGRESS OF THE UNITED STATES
Washington,
Jjuly__14
, 1943—
The Joint Committee on Internal Revenue Taxation
To .Honorable
General Coim^el
...Treajsjy^^
GREETING:
Section 5012 of the Internal Revenue Code provides as follows:
"ADDITIONAL POWERS TO OBTAIN DATA.
(а) The Joint Committee on Internal Revenue Taxation or the Chief of Staff of such Joint
Committee, upon approval of the Chairman or Vice Chairman, is authorized to secure directly from
the Bureau of Internal Revenue (including the Assistant General Counsel for the Bureau of Internal
Revenue), or directly from any executive department, board, bureau, agency, independent establishment or instrumentality of the Government, information, suggestions, data, estimates, and statistics,
for the purpose of making investigations, reports and studies relating to internal revenue taxation.
(б) The Bureau of Internal Revenue (including the Assistant General Counsel for the Bureau
of Internal Revenue), executive departments, boards, bureaus, agencies, independent establishments and instrumentalities are authorized and directed to furnish such information, suggestions,
data, estimates, and statistics directly to the Joint Committee on Internal Revenue Taxation or to
the Chief of Staff of such Joint Committee, upon request made pursuant to this section."
By virtue of the authority vested in me under the above-quoted section of law, I hereby request that the following information, suggestions, data, estimates, and statistics be furnished directly to me at Room 1336, New House Office Building, within
5
days from the date of this
request:
Any suggested alternative plans already prepared by the Treasury Departnent
in 1943 f o r raising additional revenue or combating i n f l a t i o n , together with
accompanying schedules.
Note: The source of this material w i l l be kept
confidential i f you so d e s i r e . I t i s intended
to be used f o r study purposes by the s t a f f .
Approve
v
Chief of Staff.
)
Date:
W. S . 4WVCHKKEMT PfttNTtKG O f * t C I
&8089
Z A . M
F o r m 10
Joitit Committee on
Internal Revenue
Taxation
REQUEST FOR DATA AND INFORMATION
CONGRESS OF THE UNITED STATES
Washington, D. C•
JV0X..X.4
, 19„.43„
The Joint Committee on Internal Revenue Taxation
To . Jmor able
ral.Counsel
Treasiu^„ Departa
„
GREETING:
Section 5012 of the Internal Revenue Code provides as follows :
"ADDITIONAL POWERS TO OBTAIN DATA.
(а) The Joint Committee on Internal Revenue Taxation or the Chief of Staff of such Joint
Committee, upon approval of the Chairman or Vice Chairman, is authorized to secure directly from
the Bureau of Internal Revenue (including the Assistant General Counsel for the Bureau of Internal
Revenue), or directly from any executive department, board, bureau, agency, independent establishment or instrumentality of the Government, information, suggestions, data, estimates, and statistics,
for the purpose of making investigations, reports and studies relating to internal revenue taxation.
( б ) The Bureau of Internal Revenue (including the Assistant General Counsel for the Bureau
of Internal Revenue), executive departments, boards, bureaus, agencies, independent establishments and instrumentalities are authorized and directed to furnish such information, suggestions,
data, estimates, and statistics directly to the Joint Committee on Internal Revenue Taxation or to
the Chief of Staff of such Joint Committee, upon request made pursuant to this section."
By virtue of the authority vested in me under the above-quoted section of law, I hereby request that the following information, suggestions, data, estimates, and statistics be furnished directly to me at Room 1336, New House Office Building, within
7
days from the date of this
request:
The data requested in Exhibit A attached to this request•
Notes The source of this material will be kept
confidential if you so desire. It is intended
to be used for study purposes by the s t a f f .
Date:
July,,14>..l9-43.
H s. gvr mn mm M orrlcc 8&9
o o en e t
S
4S
Exhibit A
Individual Income, Corporation Income, Declared Value Excess Profits,
Excess Profits, and Capital Stock Tax Data, Distributed by Income Classes,
Calendar year 1943
Individual income tax data (for taxable returns only)
1.
Number of returns
2.
Net income
3.
Personal exemption
4.
Credit for dependents
5.
Earned income credit
6.
Normal tax net income
7.
Partially tax exempt interest received
8.
Wholly tax exempt interest received
9.
Surtax net income
10.
Victory tax net income
11.
Normal tax
12.
Surtax
13.
Gross victory tax
14.
Net victory tax
Corporation income and declared value excess profits taxes data
(shown separately, so far as practicable, for (a) all returns,
(b) returns with net income, and (c) returns with no net income)
15 • Total number of returns
16#
Number of taxable returns
17•
Net income
18.
Partially tax exempt interest received
19.
Wholly tax exempt interest received
20.
Dividends received from domestic corporations subject to tax
-
2
-
21#
Aggregate dividends paid in cash and assets other than
compare's owi stock
22.
Dividends received credit
23.
Net income for declared value excess profits tax
24#
Net operating loss deduction
25.
Adjusted net income
26.
Normal tax net income
27.
Surtax net income
28.
Normal tax
29.
Surtax
30.
Declared value excess profits tax
Corporation excess profits tax data
31• Number of taxable returns
32.
Excess profits net income
33.
Specific exemption
34.
Excess profits credit
35.
Unused excess profits credit
36.
Adjusted excess profits net income
37.
Excess profits tax
38.
Postwar refund of excess profits tax
C o r p o r a t i o n c a p i t a l s t o c k t a x data
39.
Number of taxable returns
40*
Declared value of capital stock
41.
Capital stock tax
THE GENERAL C O U N S E L OF THE
TREASURY
WASHINGTON
August 14, 1943
Dear Mr. Eccles:
In connection with the series of conferences
which the Secretary initiated on August 10, I am
forwarding for your examination a list of general
questions on which the Secretary will need information in formulating his statement to the Congress on
the tax program. Whatever information you may supply
on the topics covered by these questions will be
very helpful.
The enclosed questions will be the subject of
informal discussion at the meeting next Thursday.
They are being sent to you now in order to give you
an advance opportunity to consider them.
In addition to the comments which you may make
at the conference, it would be helpful to have memoranda
covering such phases of the issues raised in the
enclosed questions as fall peculiarly in the jurisdiction of your agency.
It is, of course, important that the enclosed
material be treated as highly confidential.
gj^JI
I T WklTPIB
T
General Counsel
Honorable Marriner S. Eccles
Governor, Federal Reserve Board
Washington, D. C.
Enclosure
STRICTLY CONFIDENTIAL
mmML
omtsxm
m m
smmsisf to m
X«
Copy
sEcatsriHX's
Jz
m
casoRKes
i t Wtto* an isgwrtaiit d i f t ^ r e n e e i n iha e f f e c t i v e n e s s
o f p r i c e c o n t r o l i f t h s f o r f c b w i ^ g rswnufc iso&sure wer*
t o euppij oiilj a
bllHou (parlmpa |4 billion o r #5 bllliou)
inst&ad o f $22 M i l t o n , o r aubat&ntial3^ m m than 132 bU2Jbo%
i a wddod t&m< Would the d i f f e r s n c s imralro
of g ^ r a l laaadmaa prim
m\mtdommti%
Tihat mmld smpplant
p r i s e ragtfl&tian* imd how a f f e c t i v e would
I t bo?
2*
I»
l&kol? to be eo Imyy a volt&s® of mmm&r busing
tliftt tiholes&ls find r & U t l imr^iitoii^a w i l l b# depleted bale*
tha istodumm sasfa potat *&ihin tbs a n t your i f tb* Jtorthc^tog
rownue ^aeure
(a)
oaly a X«*r biSULim
#4 htllittr* or 15 billion)
i n Sddftd
(b)
|12 billion i n added taxmi S
(a)
3.
Uaan
b i l l i o n in kidded taxee?
Jfcra black i&rknta in th» tmemi&i*& <*£ l i £ # (ftseuoing that
i%mm mowtaxXXm wmt be tept subject t o p r i m ccatrol i n
aay m w t ) llkoly t o d*v*lop to w r y carious proportion*
Hithin th® naxt ;y**ar i f
(a)
te
i a d o iddiliimai
r m m ?
~ 2 ~
(b)
billioiJ
tfaa f o r t h c o o t B g reromw uaasurs euppliea o a l y a f « «
(p*vh»$* §4 M111on o r
b i l l i o n ) i n a&iait taxas?
(c)
I t ffuppdiett $12 hUairei to addad
<d)
i t a^pOiaa substantially
thaa
bSJliaa
inffifflfyftastsaf
4*
I n c o r r a l , t r i l l i t b e Kseagjwwy t o have a a a d d i t i o n a l rorenua
g e o g m s s u b s t a n t i a l l y g ^ t i r 6hsa Use aisjouscMKi §22 b i X U o n
g o a l t o keep tiws
w a r tlae iwesfc jrawr?
prloe level
n t e o i n i ghaxjO^
I f %3&» answer l a s*a9 agprrwlwataly hoar
wucii m a o u a » h o a l 4 bo atfeeii f o r i n o r d e r t o j a w e a t aueh a r i s e ?
5*
Whet tax pro^raas* i f *agf# *s0ul4 cause a sarioua w m t o f eoaeuBiiir
purshsaoa i n S B t i s i p s U o i ) o f ttM t s x t t i w ?
6.
Xa i t d e s i r a b l e t o grant sosa? r e l i e f f r o s ificreaood t a x a t i o n t o
i n d i v i d u a l s wiw i n c r e a s e t h o i r r a t a o f oavliig, i n vfcataror foar%
t o a l e v e l dm&todXy abate ixmzall
7.
l a t h « o » s u b s t a n t i a l daxjgor th&t a gauoral r e t a i l s a l s a t a x « o u l d
raeult I n a f f e c t i v e
f o r higher aago r a t e a ?
B o « the saaa
danger a x i a t t o a g r e a t o r o r l o o s e r degree w i t h aay f u r t h a r
taeoem i » individiwa Zacmm tax rataa?
Any o t h e r tncaft you would
o&ro t o affi&tlon?
8.
8*
I s thore e v i d e n c e tiact the proaent t a x aerates* SB
(«)
diaouurajjlng o v w t l s a ® work?
m t e i o f work by i w b »
alx*a4r k t m
(g)
(a)
i&iscoiiraging pQtmzbi&l m?}mm from taktag
Cm you *ugg$2&
wch farttMir i t w i l l be poaaibia to
go in taaatioxi i&tboui imurthxg Mbrtanteftl
of
the % p a l i f t e d 1& Ito* 0 aboro {as an i a i u s t ^ t i o a *
would m i n i t i a l 1 m v m tax rz%& of 30 peramt create
0ttc& d&nptr*}?
(b)
Are ther«
®f pro^isioim «hioh cgola be uaad to over-
(&)
Ixi tfcs piwumt tax
b m t i m m ImruW^ m the 1 m
ifimm g m p tfe&fc t l » y
of
<b)
on
If tl*
tiaablit to ssiiivtain tha
f o r offleiont awkUig c&paoifcyt
to
10 («}
ao* do « » » t t H havt
m ^ t a u t i a l lo^emy f o r addad turn** on theao
limb danger brnvma ibagportaat?
{^jr low i n c o m groapi i *
m a n t i h o ^ ffcsdlleii with
mfcaly
3JU
before
ixmome o f approoci-
o r l*»a*)
Does tbo p x m m t
indue© m
s b l * degroo o f m»at#
of s s a ^ w w and a&terialii tjjr buftim&s mmgemnt ming to th»
height of
(«)
<b)
normal ami surtax xmt*«f
race**
pxtfitu t e *
>
It it
iisportiuit, e i t h e r f o r purposes o f *?en«ma
o r oi&^ly f r o * ooaoi3or&tiofi« o f o c p l t ? * t o grant ooiso r o H o f
from imoroatoA t a x a t i o n t o p o r a m * i&o havo
(a)
o&toroft i n t o contractual
f o r strings
htm*u9 t m u r m o * £>olioioa t oto.*) that
fco
dioruptod fcy heavier taxoof
iammrofl oxpoaoa* tli&t
o r hardship* l i k * t h o ootfc o f
doaote *£«elaX Irar&oa*
to
Jo1**t iaoreaoofi
l i v i n g c o s t * i& oro*ao& war production eontora* ooat o f
*Rtuip»«stt f o r « o i k » b u r i a l
^
13*
Shoald t h o i n o r o a * o i n t a x a t i o n
fairly
00 on?
kojA toiifeor&toly n l m
afsotmt on the £rt>ua£* that f i n a l s o t t l o s o a t
o f how tho eo*t of tho war i t t o feo £i*tri%atofl anoaff i a f l t v i d u s l s a t variouo iacom*
oto« t ofeouM t*o t o a oosk
oiAerofel* ftogroo poutponad u n t i l a f t o r tho wart
&att*r another
t h o V&rAoa of t h * w
i » t&oro
t o pat tlio
of lo&Siag t o o «a<th o f
o a t h o l o v - i a o o f t o groups i f a Artistic
tux protract i « *sa8ortak»a now (and & oorroopoadia&ly l i g h t e r
t a x progress i o t o 1># m 4 o $>fc««ibl<i a f t o r tho w r ) 9 iaatooA o f
feawiag t h o warti^o taeroano sois*vh&t l o o t aafi
Vly tko
o f p o o W w r t a x a t i o n aoaouhat k i # t * r than i t otfcorvioo
*ouia fcot
Y
lb*
©kiiiM anothor a t t o a p t b o m&m t o feolft tho a#t iaoosao availaVlo
ftftir
i i m i tiut t o an approxiraato baxUbsa o f # aajr* 42$»Q00
( o r ton* othor f t f t n ) !
t%
(a)
So 11 lnport*&t to p l f t e i i ^ t o i n l
on Incromioo In
Individual l&iaof&oo ( 1 ) on o n l y n f o * typo* o f inoronoo
»n£ l<&*gor Inmmoo* o r (11) on nlnoot «OX typoo o f i n ho*#v*r t lft^mtftii I n tho
<b)
lov
Would i t lit doftlreblo to ha** **#roly * r e l i e f p r o v i s i o n
f o r tho«o ubo h&vo
(I)
^
no Inoronso l a i n e o » t i f
I f oo should tho r o l i o f b o tmroiy In tfc# f o n t o f
itmo&lnto n v u l l n b U l t y o f * j»oitt*nr oro<
In d o o i d t a g
oddtttonol tax rovoauo t o
o * i « n t nro
(a)
(rtitrleiit
oonoldomtlono isportontf
t o t&nt
Sp*olfleaily
Should m b o oonooraod o v o r tho d l f f o r o n o * In %hm
l i s t o f tbo
l n t « p i t bttyAm that i s IstpHoA V
tho
dlfforoneo t o t e m s
<1)
(II)
(III)
(1*)
no a d d i t i o n a l
m w i
a d d i t i o n a l rovonmo i f
b i l l i o n o r $$ b i l l i o n
a d d i t i o n a l rwonmo o f $12 b i l l i o n
A d d i t i o n a l rovonno o f tnbot&ntloXljr aoro tfcon
$12 b i l l i o n ?
<b)
I n fcoo^lmg do*n tfeo growth I n tfeo voluse* o f b&afe d o ^ o o l t o
« o d Q f t r m g r an tor^ortnnt ronton f o r l * p o * i n « f u r t h e r toxnot
(n)
I n iOMHid In I t o n important o o s o i d o v n t l o a i n f i n n i n g
o n r p m m l t a x y i d g m t o b o o n r o t o &*** iproatljr l o « * r tan rntoo
o f t o r tho w » |
