3. Free entry of gifts The act of December 5, 1942, 56 Stat. 1041 (50 U. S. C., App. Sup. IV, 846, 847) provides for free entry of gifts not exceeding $50 in value from members of the armed forces of the United States serving abroad. The act expires 6 months after the termination of hostilities as determined by proclamation of the President or by concurrent resolution of Congress. The continuance of this authority is of primary interest to the War and Navy Departments who have substantial troops abroad. 4. Free entry of articles for use of armed forces of United Nations The act of June 27, 1942, 56 Stat. 461 (50 U. S. C., App., Sup. IV, 791-795), provides for free importation of articles for personal or official use for members of the armed forces of the United Nations other than the United States, articles for enemy prisoners and internees, and articles made by members of the armed forces of the United Nations while interned as prisoners. The act is to be effective until the expiration of 6 months after the termination of the unlimited national emergency proclaimed by the President on May 27, 1941. The War and Navy Departments may be interested in the continuation of this authority. 5. Ore transportation by Canadian vessels The act of January 27, 1942, 56 Stat. 19, as amended (46 U. S. C., Sup. IV, 883, note), provides that vessels of Canadian registry shall be permitted to transport iron ore either on or between the United States ports on the Great Lakes notwithstanding the provision of section 27 of the act of June 5, 1920, as amended (46 U. S. C. 883), or any other act. The authority expires 6 months after the termination of the war or at such earlier time as the Congress by concurrent resolution or the President by proclamation may designate. H. R. 5316, Seventy-ninth Congress, which would repeal the foregoing act, passed the House on March 18, 1946, and was reported favorably by the Senate Committee on Commerce on April 10, 1946 (S. Rept. No. 1166). The bill has the approval of the United States Maritime Commission, the Office for Emergency Management, and the War Department. 6. Duty on scrap iron and scrap steel The act of March 13, 1942, 56 Stat. 171 (19 U. S. C., Sup. IV, 1001, par. 301, note), suspends the imposition of duties on scrap iron and scrap steel. The suspension of the foregoing statute ends with the termination of the unlimited national emergency proclaimed by the President on May 27, 1941. The Civilian Production Administration and the War Department have indicated that the suspension is no longer necessary. 7. Free entry of personal and household effects The act of June 27, 1942, 56 Stat. 461 (50 U. S. C., App. Sup. IV, 801, 802), provides for free importation of personal and household effects of any person in the service of the United States or his family or of any person evacuated to the United States under Government orders. The act expires on or after the day following the proclamation of peace by the President, The War and Navy Departments may be interested in the continuation of this authority. III. TAX STATUTES (The Ways and Means Committee is now considering which of these provisions can appropriately expire as presently provided and which should continue indefinitely or expire on a date fixed independently of the war period.) Statute 1. Internal Revenue Code sections 1650 to 1655, as amended by section 302 (a) of the Revenue Act of 1943, impose war tax rates in the case of a large group of excise taxes. Expiration date Rates will revert to the pre-1943 act rates on the first day of the first month which begins 6 months or more after the date of termination of hostilities in the present war, as proclaimed by the President or specified in a concurrent resolution of the Congress, whichever is the earlier. Statute 2. Internal Revenue Code section 23 (q) (2), as amended by section 125 of the Revenue Act of 1942, permits deductions for income tax and excessprofits tax purposes for contributions by corporations to a charitable trust, chest fund, or foundation for use outside the United States or its possessions. 3. Internal Revenue Code section 2135 (a) (1), as amended by Public Law 14, 57 Stat. 42, provides for taxfree export shipment of tobacco, snuff, cigars, or cigarettes for use of military or naval forces. 4. Section 1830 of the Internal Revenue Code, as amended by section 508 (a) of the Revenue Act of 1943, provides for the tax-free removal of playing cards to a territory of the United States for use of members of the armed forces of the United States. 5. Section 309 (b) of the Revenue Act of 1943 provides for an increased rate of draw-back on distilled spirits under section 3250 (1) (5) of the Internal Revenue Code. 6. Internal Revenue Code section 3804 amended by section 507 (a) and (b) of the Revenue Act of 1942, provides for postponing the filing of income tax returns, payment of taxes, claiming of credits or refunds, assessing of deficiencies, etc., in the case of persons outside the Americas. 7. The Soldiers' and Sailors' Civil Relief Act of 1940, 54 Stat. 1178, provides various deferments and restrictions on the collection of taxes of servicemen (originally referred to Senate Commit tee on Military Affairs). 8. Public Law 490, 56 Stat. 143, provides for deferment of income tax returns and payment of tax for prisoners of war, members of the armed forces serving outside the continental United States, and civilian officers or employees in certain cases (originally referred to House Committee on Naval Affairs). 9. Section 452 (b) (2), as to gift tax and section 403 (d) (2), as to estate tax, of the Revenue Act of 1942 provide, with respect to the treatment of certain powers of appointment, that individuals in the military or naval forces of the United States shall be considered under a legal disability to release a power of appointment. 10. Internal Revenue Code section 114 (b) (4), as amended by section 145 (a) of the Revenue Act of 1942 and as amended by section 124 (a) of Revenue Act of 1943, provides for percentage depletion allowances for various mining products. Expiration date This provision does not apply to contributions paid within a taxable year beginning after the date of cessation of hostilities as proclaimed by the President. Effective until the date on which the President proclaims that hostilities have terminated. Effective until the date on which the President proclaims that hostilities in the present war are ended. Effective until the first day of the first month which begins 6 months or more after the date of the termination of hostilities in the present war. In no event does this relief extend beyond the 15th day of the third month following the month in which the present war with Germany, Italy, and Japan is terminated as proclaimed by the President. These provisions may operate until the termination of the war by a treaty of peace proclaimed by the President and for 6 months thereafter. These provisions may operate until the 15th day of the third month in which the present war with Germany, Italy and Japan is terminated as proclaimed by the President. Effective until the termination of the present war. The provision does not apply to any taxable year beginning on or after the date of termination of hostilities in the present war as proclaimed by the President or in a concurrent resolution of the Congress. Statute 11. Section 307 of the Revenue Act of 1943 provides for Government exemption from certain excise taxes. Under section 307 (c) of the Revenue Act of 1943, as amended by Revenue Act of 1945, the Secretary of the Treasury is authorized to grant additional exemptions, indefinitely. 12. Internal Revenue Code section 22 (d) (6) (A), as amended by section 119 of the Revenue Act of 1942 and section 110 (a) of the Revenue Act of 1943, provides special income and excess profits tax relief in cases of involuntary liquidation and replacement of inventories. Expiration date In general, these exemptions terminate on the first day of the first month which begins 6 months or more after the date of termination of hostilities as proclaimed by the President or in a concurrent resolution of the Congress, whichever is earlier. Applies to involuntary liquidation of inventory prior to the termination of the present war as proclaimed by the President. Applies to war losses sustained during 13. Internal Revenue Code section 127, added by section 156 (a) of the the present war. Revenue Act of 1942 and amended by section 201 of Public Law 291 (79th Cong., 1st sess.), permits deductions for purposes of income and excess profits taxes with respect to property destroyed or seized on or after December 7, 1941, in the course of military or naval operations by the United States or any other country engaged in the present war. 14. Section 22 (b) (13), as amended by section 141 (a) of the Revenue Act of 1945, excludes from gross income certain compensation for active service in the armed forces. 15. Internal Revenue Code section 421, added by section 8 of the Current Tax Payment Act of 1943, provides abatement of outstanding income tax liabilities for persons who die in active service as members of the military or naval forces. 16. Section 511 (c) of the Merchant Marine Act of 1936 (49 Stat. 1985) provides special income tax treatment for construction reserve funds, certain percentages of which must be expended within a specified time (originally referred to House Committee of Merchant Marine and Fisheries). 17. Public Law 497 (56 Stat. 171) suspended the tax under Internal Revenue Code section 3425 on imported copperbearing ores, concentrates, and articles. 18. Section 2883 (c) of the Internal Revenue Code, added by Public Law 412 (56 Stat. 17) and section 2883 (d) and (e), added by Public Law 508 (56 Stat. 187), provides special provisions for storing and withdrawing distilled spirits and for the tax-free removal for redistillation of distilled spirits under certain conditions. 19. Internal Revenue Code, section 3805, added by section 507 (a) of the Revenue Act of 1942, extends the time Exclusion is applicable to any taxable year before the termination of the present war as proclaimed by the President. Applicable to tax liability incurred prior to the termination of the present war as proclaimed by the President. Extension of this time may be granted until the termination of the present war or until such earlier time as the Congress by concurrent resolution or the President may designate. Effective from the date of its enactment until the termination of the unlimited national emergency proclaimed by the President on May 27, 1941. These provisions will cease to be in effect upon the termination of the unlimited national emergency proclaimed by the President on May 27, 1941. Effective until the 15th day of the sixth month following the month in which the present war with Germany, Statute for filing income tax returns and paying tax by China Trade Act Corporation. 20. Act of April 28, 1942 (56 Stat. 226), as amended by section 701 of the Revenue Act of 1943, removes the bar against prosecuting claims against the United States applicable to former employees of certain Government activities (originally referred to House Committee on Appropriations). 21. The act of August 24, 1942 (56 Stat. 747), as amended, suspends the running of any existing statute of limitations applicable to certain offenses against the United States, apparently including section 3748 of the Internal Revenue Code (offenses against the internal-revenue laws) and section 37 of the Criminal Code (conspiracy), (originally referred to House Committee on the Judiciary). 22. Section 3475 (b) (3) of the Internal Revenue Code as amended by section 307 (a) (9) of the Revenue Act of 1943, exempts from the transportation tax on property amounts paid by or to the War Shipping Administration for intercoastal shipments. 23. Section 1426 (i) of the Internal Revenue Code, added by Public Law 17 (57 Stat. 45), and amended by Public Law 21, Seventy-ninth Congress, first session, provides that the term employment (for the purposes of the employers' tax under code sec. 1410) shall include services by crews employed by War Shipping Administration, and also allows War Shipping to disregard the $3,000 limit on what constitutes wages (originally referred to House Committee on the Merchant Marine and Fisheries). 24. Internal Revenue Code section 124, added by section 302 of the Second Revenue Act of 1940, provides a special amortization period for emergency facilities certified to be necessary in the interest of national defense during the emergency period. 25. Section 1700 (a) (1) of the Internal Revenue Code, amended by Public Law 676 (56 Stat. 703), exempts members of the armed forces of the United Nations from the tax on admissions under certain conditions. Expiration date Italy, and Japan is terminated as proclaimed by the President. Effective until 6 months after the termination of hostilities as proclaimed by the President. Effective until 3 years after the termination of hostilities in the present war as proclaimed by the President or by a concurrent resolution of the two Houses of Congress. Effective until the first day of the first month which begins 6 months or more after termination of hostilities in the present war. Effective until the termination of title I of the First War Powers Act, 1941, i. e., during the continuance of the present war and for 6 months after the termination or until such earlier time as the Congress or the President may designate. Expired September 29, 1945. The end of the emergency period for this purpose was proclaimed by the President on September 29, 1945. No termination date provided. session. 26. Under Public Law 711 (56 Stat. No expiration date under Public Law 752), and Public Law 390 (58 Stat. 371, Seventy-ninth Congress, second 647), the tax on coconut oil imposed by Internal Revenue Code section 2470 (a) (2) may be suspended until June 30, 1946. Public Law 371, Seventy-ninth Congress, second session, provides for indefinite suspension of that tax under certain conditions. 27. Under the act of October 2, 1942 The provisions of this act will, in (56 Stat. 765), amending the Emergency general, terminate not later than June Price Control Act of 1942, the salary 30, 1946. stabilization program was set up. Portions of this program are administered by the Treasury Department and the Bureau of Internal Revenue (originally referred to House Committee on Banking and Currency). 28. The Trading With the Enemy Act of 1917 (40 Stat. 411), as amended, contains in section 24 provisions for the internal revenue tax treatment of enemy property coming in time of war under the control of the Alien Property Custodian. Under section 5 (b) of this act and sections 1802 (c) (7) and 3481 (b) (7) of the Internal Revenue Code, exemptions from documentary transfer taxes (stocks and securities) are allowable on certain transfers between foreign governments, their nationals, and the United States and its agencies (originally referred to Committee on Interstate and Foreign Commerce). 29. Section 318 of the Tariff Act of 1930 (46 Stat. 590), provides that whenever the President shall by proclamation declare an emergency to exist by reason of a state of war, or otherwise, he may authorize the Secretary of the Treasury to extend “during the continuance of such emergency" the time for the performance of any act or to permit duty-free importation of food, clothing, and medical, surgical, and other supplies for use in emergency relief work. Depending on the situation at the time, provisions of the Internal Revenue Code such as subchapter B of chapter 29 could be affected by such a proclamation. Permanent. Permanent. Mr. EMERSON. Mr. Chairman, the next agency is the Post Office representative. STATEMENT OF ROY MARTIN, DEPUTY SECOND ASSISTANT POSTMASTER GENERAL, POST OFFICE DEPARTMENT Mr. HOBBS. Mr. Martin, we are delighted to have you with us and your associates. We are always happy to hear from the postal service. Mr. MARTIN. My name is Roy Martin, and I am Deputy Second Assistant to the Postmaster General. Mr. Chairman, there have been during the duration of the emergency 15 different items that affected post-office operations or post-office revenues. Only three of those items remain as of any particular concern in present operations. |