Evening star., 1946-12-31
Three Republicans Put
Balancing Of Budget
Ahead Of Tax SIashes
BY the Assoeiosed Press

BY the Associated Press
Three more Republicans put bud
get balancing ahead of tax cutting
t6aay as top White House advisers
SMf President Truman would oppose
AxH general slash in taxes by the
new Congress.
Az the same time, however, these
presidential intimates emphasized
that the administration would not
hight tax law changes designed either
to add to the production incentive
or to wipe out any inequalities
that may exist.
But none would say what changes
along these lines might be in pros
pect.
;. The new "go slow on tax cutting
signs were hoisted on both sides of
Capitol Hill.
Says Reductions Must Wait.
Senator Hawkes., Republican, of
, New Jersey, a former president of
the United States Chamber of Com
merce and one time vice president
of the National Association of Manu-
facturers, declared that nothing is
more important than balancing our
national budget" and big tax reduc-
tions must wait for that.
"I talked to 500 able men in the
last three weeks" Senator Hawkes.
told a reporter. without being
asked, all volunteered the same
statement: Il hope to God you won't
reduce taxes until you balance the
budget
In the same vein, Representative
Hoffman, Republican, of Michigan
told newsmen:
First, we've got to make both
ends meet, and pay something on
the debt if we can"
Order of Business.
And Representative Judd, Repub-
lican, of Minnesota chimed in with
the view that "it would be mis-
take, financially and psychologically,
to make tax-cutting the first order
of business"
"I think most of the country feels
that way" Mr.. Judd said, adding:
Make tax legislation the third
order of business. First, reduce Fed
eral expenditures; second, reduce the
debt-dont just talk about it-make
an actual payment, and third, take
up tax legislation"
Mr.. Hoffman said the uncertain
ties of the year ahead should force
Congress to go slow.
What with all the portal pay
suits and perhaps some strikes
ahead, we don't know what we are
facing" the Michigan lawmaker
said
"Windfan Tax" Discussed.
His reference to the portal pay
suits came after Representative
Knutson, Republican, of Minnesota
disclosed that some congressional
tax experts were discussing the pos
sibility of seeking to impose wind
fall tax on judgments won in such
back pay suits now being widely
filed.
Mr.. Knutson, slated to take over
the Craftsmanship of the tax-writ-
ing Ways and Means Committee,
said he was not proposing such a
levy now. He added to reporters,
however, that the portal pay suits
might reach a 5000 900 900 total
and that unless Congress acts the
Treasury might lose many millions
in revenue.
This loss, he said, would arise from
less taxes on reduced profits and
from claims for refunds under the
carry-back provisions of the wartime
excess profits tax law.
Mr.. Knutson has been one of the
most vocal proponents of a fiat 20
per cent cut in individual income
taxes.
Opposed by Truman.
One ranking administration official
said, however, that Mr.. Truman was
fatty opposed to this. Nor, he added,
is the Chief Executive inclined to
any plan for raising personal exemp-
tions in order to cut tax bills Of
those in the lower brackets.
While mentioning the possibility
Ct an incentive" plan or a bill to
correct "inequities," this official
firmly refused to elaborate.
Some congressional tax experts,
however, have said the present high
rates on big incomes tend to dis
courage business executives from
putting their full efforts into their
jobs.
Relief for Lower Brackets.
But there has been virtually no
talk of pairing top-bracket tax bills
Nithout some relief for those in the
lower categories.
Senator Hawkes., too, talked of the
need for some adjustment of taxes,
which now unfairly, interfere with
the conduct of business and there
fore interfere with the earning of
profits from which taxes are de-
rived"
The New Jersey Senator added
that some excise taxes" were un-
fair and retarding business.
But we must wait on the big
tax reductions to see what progress
- IL ooovor,iac orl ho 10 noir,o