Evening star., 1943-10-19
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Killed byG0P
|HouseGroup
Committee Members
Advocate Economy
As Substitute
By the Associated Press.

BY the Associated Press.
Republican members of the
House Ways and Means Commit
tee took a solid stand today
against any further Federal
taxes on individual or corporate
incomes, in effect killing outright
the administrations $10,500,000-
900 new tax program.
In a statement issued by Repre-
sentative Knutson, Republican, of
Minnesota, the Republicans pro-
posed a program of Government
economy, instead of further tax in
creases
The statement made no mention
OF sales tax proposals, but one Re-
publican member said, That issue
is dead"
Mr.. Knutson said his statement
was issued on behalf of the 10 Re-
publlcans on the 25-member COM
mittee.
Viewed as Death Blow.
In view OF known opposition by a
bloc OF Democrats to the admins
tratlons program, which proposes
increases in individual and cor
porate income rates and larger ex-
else levies, the Republican state
menu was viewed as dealing the
death blow to the program.
The Treasury has failed to ius-
thy its proposal to add an additional
sl0,50o, 100000 to our tax load" the
statement said. "On the other hand.
witness after witness has shown
conclusively that an increase in
taxes at this time would probably
undermine our whole economy.
We do not wish to assume the
responsibility for doing anything
that will weaken the Nations war
effort or make harder the tremen-
oous task of reconversion of indus
try when the war is over.
From the imitation standpoint.
we believe. that the further tax in
crease would be infationary in itself
since it would inevitably lead to a
demand for higher wages to meet
the increased tax burden. Thus the
VICIOUS spiral would continue"
May Tax Luxuries
! The statement raised seriou,
doubts that Congress would be able
10 produce a tax bill embracing
even half of the amount recon-
mended by the Treasury. The Re-
publican statement left the way
open for support of some increase in
excuses on so-called luxuries.
turning to its proposals for
economy, "as an alternative for fur
ther increases in taxes" the Re-
publicans said:
The President should forthwith
proceed to set Government finances
in order by effecting needed
economies in expenditures, which
would obviate the necessity for an
equivalent amount of borrowing,
and therefore. of taxes.
Let him without delay sever from
the Government pay roll the 100000
employees whom Senator Byrd,
Democrat, of Virginia, chairman Of
the Joint Committee on Non-Es-
sential Federal Expenditures, has
said can be removed without in any
way lmpalrlng the war effort.
Cite Warren's Report.
I'VE likewise recommend that the
President study the possibility of
eliminating waste and extravagance
in military expenditures. Repre-
sentative Taber of New York, rank
: ir-., Republican member of the Com
!; mittee on Appropriations, has
pointed out how a net savings of
$4,000 100000 or more can be made,
without in any way reducing the
production of implements and mu-
, nitions of war.
The disclosures made yesterday
by Controller General Lindsay War
rem are further proof of the waste
!, and extravaganza now going on.
I'VE believe it would be wise to
(See TAXES, Page Aid