Evening star., 1947-03-10
Appropriations
Continued From First Page

ca
be needed, in view Of prospective
changes in the tax law.
Pure legerdematn," declared
Representative Cannon Of Missouri,
top Democrat on the Appropriations
Committee. That's beating around
the bush and putting on the day
of reckoning"
Gore Even Sees Cost Increase.
Representative Gore. Democrat,
Of Tennessee, who used the words
"phony" and SHAM" told news
|papermen the proposed reduction
actually may cost the Government
extra money.
THE Treasury Department won't
have enough TO pay the refunds and
the interest will accumulate while
Congress goes through the process
of making deficiency appropria-
ton" Mr.. Gore said. He has drafted
an amendment to cut the interest
rate from 6 to 8 per cent.
Senator Taft voiced the opinion on
the radio program that the $1l AGO.
100000 President Truman requested
for the Army and Navy could be re-
duced without impairing the armed
forces.
Il believe any department Of the
Government can be cut 10 per cent
and run just as EFFICIENTLY" he said.
Turning to taxes, he declared:
Taxes are dangerously high. The
burden is greater than the people
Of the country can stand. II we
don't lower taxes, workers are going
to insist on higher wages and they
will get higher wages. Lower taxes
will lessen wage increase demands"
The House Ways and Means Com
mittee will take up Thursday bill
for 20 per cent 'across-the-b board"
slash in individual income levies.
Mr.. Ruml suggested not only q
20 per cent reduction in individual
income taxes, but also a big slash In
corporation income levies and elm
nation Of most excise taxes on
goods and services.
Senator Taft suggested the IS 0O0,-
100000 budget slash as a possible
middle ground between the House,
which has voted $1,000 900 COO cut,
and the Senate with its $4,500, 900 900
figure.
He contended $500, ,ooo, 600 Of the
saving could be applied to tax re-
duction and still! leave a surplus
for a substantial payment. of the
Nations $262, 900 ,00o, 900 debt.
Roy Blough, professor OF eco
nomics at the University of Chicago,
who appeared with Senator Taft and
Mr.. Ruml on the University's regu-
lar Round Table of the Air program
over the National Broadcasting Co.
network. argued against tax cuts
now. He contended that surpluses
in flush times should be applied toI
the debt rather than to tax slashes.
Ruml Would Aid World.
At a news conference after his
broadcast, Mr.. Ruml said Congress
could cut $4,000, 100000 from taxes
and still balance Government in
come and outgo "at high levels Of
employment"
But he added he would prefer
that much of this total-"say about
$4,000, ,000, 900 be funnelled into
world reconstruction.
The author Of the wartime Ruml
plan for reconversion tax reductions,
Mr.. Ruml, said the sending Of dol
lars overseas by gifts and loans"
would not endanger this country's
interests.
TT would all have to come back to
the United States-there's no place
else to spend It," he said.
But he acknowledged political
difficulties" in winning support for
such plan and offered his previ-
ously outlined tax reduction pro-
gram as the alternative.
Mr.. Ruml forecast a recession this
year unless steps are taken to boil
ster public purchasing power.
The New York executive, chair
man of the board Of r. M. Macy 81
Co., Inc, predicted there might be
5000, 900 unemployed at the end OF
1947.
Merchants are beginning to feel
increased resistance to sales," he
told reporters, and added, many
businesses are so appalled, at the
high costs of construction that they
have just stopped their building
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