Taxation for National Defense

April 5, 1941

Report Outline
Coming Consideration of New Tax Bill
American Tax Structure in World War
Present and Proposed Taxes for Defense
War Income and Excise Taxes in Britain
Special Focus

Coming Consideration of New Tax Bill

Imposition of heavier taxation to help defray the costs of national defense and of aid to Britain has moved into the foreground of public interest with announcement by Chairman Doughton (D., N. C.) of the House Ways and Means Committee that that body will begin consideration of a new tax bill in mid-April. Armed with data on the yield of existing taxes drawn from the March 15 returns, and with Treasury estimates of the probable yield of rate changes and proposed new levies, the committee will have the task of determining what proportion of defense costs it will recommend be met from current revenues and of proposing taxes designed to achieve that objective without restricting the progress of the defense program or imposing inequitable burdens on any class of taxpayers. The taxes already levied by Great Britain to finance her war effort, and any new British taxes that may be announced in the budget for the fiscal year 1941–42, to be presented to the House of Commons in the near future, will meanwhile provide a comparative measure of the burdens which the American people will be called upon to bear in making this country the “arsenal of democracy.”

Tax Objectives in Financing of Defense Program

Figures given in President Roosevelt's budget message last January indicated that the cost of the national defense program from June, 1940, to June, 1942, would be $28,480,000,000. It is now necessary to add to that total the sum of amounts subsequently requested, which were not included in the budget, as well as the $7,000,000,000 recently appropriated for expenditures under the lease-lend act. A table prepared by the Office of Production Management lists defense appropriations and contract authorizations, voted or requested through March 15, 1941, for the period from June, 1940, to June, 1942, totaling $39,177,800,000. That sum includes the $7,000,000,000 for British aid.

The President noted in his budget message that there was “no agreement on how much of such an extraordinary defense program should be financed on a pay-as-you-go basis and how much by borrowing,” but he said “a start should be made this year to meet a larger percentage of defense payments from current tax receipts.” Secretary of the Treasury Morgenthau told a subcommittee of the Senate Finance Committee, February 12, 1941, that “if the Congress would adopt a program under which we could raise through revenues an amount sufficient to finance two-thirds of all expenditures, and one-third from borrowing, I think it would be a very wholesome method to follow.”

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Mar. 24, 1965  Excise Tax Cuts and the Economy
Feb. 15, 1961  Flexible Taxation
Apr. 02, 1959  State Tax Problems
Apr. 23, 1958  Tax Reduction, 1958
Aug. 14, 1957  Fast Tax Write-Offs
Apr. 10, 1957  Federal Payments in Lieu of Taxes
Sep. 12, 1956  Corporation Profits and Taxes in Prosperity
Mar. 16, 1954  Shares in Tax Relief
Nov. 21, 1953  Revision of Excise Taxes
Mar. 19, 1953  Federal-State Tax Relations
Oct. 01, 1952  European Taxes and Tax Evasion
Nov. 03, 1950  Excess Profits Tax
Feb. 01, 1950  Tax Loopholes
Jun. 04, 1949  Excise Taxes
Oct. 27, 1948  Postwar Sales Taxes
Aug. 29, 1947  Taxation of Family Income
Apr. 09, 1947  Income Tax Relief
Jan. 11, 1946  Taxation of Cooperatives
Oct. 16, 1945  Federal Taxes on Business
May 08, 1944  Postwar Taxes
Sep. 20, 1943  Sales Taxes
Dec. 05, 1941  New Taxes for Defense
Apr. 05, 1941  Taxation for National Defense
Feb. 28, 1941  Taxation of Alcoholic Beverages
Jan. 11, 1941  Exemptions from Taxation
Dec. 04, 1940  Federal Taxes and Defense Financing
Feb. 01, 1940  Sharing of Tax Revenues
Feb. 02, 1939  Turnover Taxes in the States
Nov. 05, 1937  Broadening of the Income-Tax Base
Jun. 17, 1937  Exemptions from Income Taxation
Apr. 05, 1937  Coordination of Federal and State Tax Systems
Dec. 19, 1936  Revision of Federal Tax on Capital Gains
Nov. 02, 1936  State Taxation of Natural Resources
May 26, 1936  Assessment of Property for Taxation
Apr. 17, 1936  Federal Taxes on Consumption
Mar. 19, 1936  Taxation of Undistributed Corporate Profits
Dec. 17, 1935  Reduction of Tax Burdens on Real Estate
Oct. 21, 1935  Tax Delinquency in the United States
May 21, 1935  Comparative Tax Burdens in America and Britain
Feb. 01, 1935  Federal Taxation of Corporations
Nov. 27, 1934  Elimination of Conflicts in Taxation
Jul. 25, 1933  Taxation of Excess Profits
Jan. 25, 1933  Tax Burdens and Tax-Free Securities
Nov. 23, 1932  The Beer Tax and the Sales Tax
Dec. 19, 1931  Sales Taxes: Federal, State, and Foreign
Sep. 18, 1931  Death Taxes and the Concentration of Wealth
Mar. 18, 1931  Federal Taxation of Large Incomes
Jan. 10, 1931  Taxation of Capital Gains
Nov. 09, 1929  Federal Tax Reduction-1930
Aug. 08, 1927  Federal Tax Reduction—1928
Sep. 27, 1926  Tax Reduction and the Public Debt
Jan. 16, 1926  Taxation of Estates and Inheritances
Nov. 07, 1925  Federal Taxation of Small Incomes
Nov. 28, 1924  Social, Fiscal and Legal Aspects of the Inheritance Tax
Apr. 07, 1924  Causes and Effects of the Tax Return Blockade
Dec. 12, 1923  Tax Exempt Securities
Dec. 10, 1923  Taxation
Defense Budget
Tax Reform
U.S. at War: World War II