Evening star., 1944-02-21
President Will Veto
Tax Bill Tomorrow,
Declares
Action to Be Sustained,
Speaker Predicts After
White House Conference
Ey the Associated Press.

4
Speaker Rayburn said today
President Roosevelt would send
to Congress tomorrow a message
vetoing the $2,315, 600, 900 new
tax bill. The veto will be sus-
tanned, Mr.. Rayburn asserted.
The Speaker expressed what he
called his opinion to newspapermen
after conference at the White
House attended by congressional
Democratic leaders. Others ut the
conference were Vice President Wal
lace, Senate Majority Leader Bark
ley and House Majority Leader Nc
Cormack.
Some Of the leaders urged the
President not to veto the tax bill.
However, Mr.. Roosevelt has
termed the new revenue measure
"unrealistic." 1t provides for about
one fifth of the 1o,500, ,000, 900 asked
by the administration.
Showdown Wednesday.
Congressional action on the veto
will be put off until Wednesday.
House leaders of both parties have
an agreement to put aside contro-
versial questions until then because
some influential members have en-
gagements away from the Capital
for Washington Birthday observ-
ances.
The White House attitude toward
the tax bill was echoed as the House
opened its session today. Repre-
sentative Gore, Democrat, of Ten
nessee, declared the measure sis
not worthy of this Congress" that
1t "opens loopholes for wartime
profiteering."
Republican members of the House
Ways and Means Committee ex-
pected to confer informally today
or tomorrow on the problems which
the veto will bring up. One member
said he would be particularly dis
turbed by loss of the social security
freeze and section giving a war
contractor dissatisfied with the re-
negotiation of his contract his day
in court.
In the Senate, Acting Minority
Leader White said he thought a
veto would be "a serious mistake" on
the part of President Roosevelt and
said he. believed the Senate might
override it.
Added Burden on Treasury.
at probably will mean no tax
legislation in this session and the
failure to make available to the
Treasury the added amount of rev.
enue which the bill would raise will
of necessity impose an added burden
of borrowing upon the Treasury" he
| said.
In the absence Of new legislation
(Which presumably would have to be
passed over another veto) the social
security tax rate for old-age insur-
ance will double March to per
cent each on employers and en-
ployes. Employees covered would get
no additional benefits; the contin-
gency reserve fund merely would be
increased. Under the law the rate
ultimately will reach per cent each.
That reserve already stands at
more than $4,000 ,000, 900, 'an amount
which Senator Vandenberg, Repub-
lican, of Michigan says is II times
the normal drain that might be
expected in any of the next five
years.
81 Millions Lost Already.
BY not signing the tax bill before
midnight Saturday, Mr.. Roosevelt
already had lost a potential $87,-
100000 March revenue from in
creased excise taxes.
The taxation break appears to be
a matter of more than immediate
concern, with the question arising
at the Capitol whether it might
block one of the major proposals
Of the Bernard M. Baruch- John M.
Hancock peace reconversion plan.
The Baruch- Hancock report rec
commended passage of a postwar
revenue law to be put on the shelf
for peacetime use. Several members
OF Congress questioned whether
Congress would approve postwar
revenue law acceptable to the ad-
ministration.