Evening star., 1943-10-10
House COP Demands
Cut in u. 5. Expenses
To Hold Taxes Down
Ey the Associated Press.

Fy the Associated Press.
House Republicans used the
administrations battered So
5oO,Ooo,00O tax program yester-
day as a springboard for a re-
newed attack on Government
spending.
We are not going to let them
strangle the public with new taxes
without any effort to cut down ex-
penses within the Government" de-
clared House Minority Leader Mar
tin
That was the Republican chief
tain's first public expression on the
Treasurys tax proposals which re-
celved an attentive but hostile re-
ception from both major parties on
the Ways and Means Committee
last week.
Insist on Economy.
were going to insist on more
Government economy" Mr.. Martin
said. That seems to be a thing
they're trying to overlook entirely"
Chairman Cannon of the House
Appropriations Committee declared
however, that new taxes are ines
capable as the only means of financ-
ing the Governments huge wartime
budget.
Secretary of the Treasury Nor
eenthau placed the administration S
tax program before the WAYS and
Means Committee last Monda-. rec
ommending boosts in income and
excise taxes to bring in most OF the
requested new revenue. Chairman
Doughton promptly called 1t in
defensible"
The Secretary contended that
cut in Government spending-even
should it total billions of dollars
would not alter the need for new
taxes. He said the program is needed
to take up the "inf1ationary gap" be-
tween the large national income and
the limited amount of goods for
which it can be spent.
Mr.. Martin said the Republicans
regard reduced Government spend
ing as "a major part of the fight
against imitation"
Taber Proposes S4,65S, ,OO0, 900 Cut.
He made no estimate of the amount
OF savings which Republicans would
demand, but Representative Taber,
Republican, of New York. argued
the Government could whittle 81
658O00,O0O off its expenditures-al-I
most half the amount the Treasury
wants in new taxes.
Mr.. Taber coupled his economy
plea with recommendation for
10 per cent Federal sales tax, also
proposed to the Ways and Means
Committee, but Mr.. Martin said he
had Not gone thoroughly into
that"
Randolph Paul, tax expert for the
Treasury, rejected the idea of a
Federal sales tax as the most un-
fair method of taxation.
Government testimony at an end, |
the committee will hear tax pro- |
po5als from private organizations |
this week as it takes up the job of .
getting some sort of a tax bill in .
shape before the end of the year.
Would Increase Exemption.
Meanwhile, Chairman George of
the Senate Finance Committee said
he thought it would be "a very
serious mistake" for Congress to
follow the Treasury's suggestion and
lower the income tax exemption for
dependent children from the present |
$3.50 to $500.
In fact, if he had his way the
Georgian told reporters, he would
increase the exemption to s400 and !
make it applicable to children at
tending colleges or technical schools /
when they were beyond the present
age limit of l8, He said, however. /
it might be impossible to raise this .
exemption in view of the need OF
wartime revenue.
Although he declined to comment |
generally on the Treasury's new tax /
program, Senator George said it
seemed apparent to MIN that if the
present 5 per cent Victory tax is
eliminated that approximately g.
100000 or more persons in the low /
income brackets will pay no Federal .
taxes at all unless new levies are
developed
Asked what levy might take the |
place of the Victory tax, he said that ,
sales tax had been suggested and
probably could be substituted for it
if the Treasury agreed. He said he
had no idea, however, that the
Treasury would relax its opposition
to such a levy.