Evening star., 1947-06-17


didn't recognize the right Of ma
jority in Congress to do so.
In all American history no tax bill
passed by both Houses has ever
failed to become law. Only one has
been vetoed heretofore, but it was
over-ridden by Congress. If the
pending tax bill is killed because 1t
cannot muster two-tilirds In both
Houses. 1t will bring a tremendous
change in legislative practice.
The arbitrary use of the veto to
defeat the will Of a majority In Con-
gress will lead to the arbitrary use Of
the rider attached to other neces-
sary legislation. The majority would
be well justified in attaching the tax
bill to any Of the current appropria-
ton bills, II only to assert the his
toric right Of Congress to write legis-
lation that raises revenues and fixes
tax rates.
Communfstic Argument Seen.
When Mr.. Truman tells the tax
payers who were to be granted a 80
per cent reduction that they can't
have it because some one with a
higher income is getting a 10 per
cent reduction, he is misjudging hu-
man nature If he thinks this will
please that vast number OF taxpay-
ers in the lower brackets to whom
every dollar of saving is consequen-
tial and who do not feel they should
be. punished because Mr.. Truman
wants to play the demagogue. The
President Is, In effect, arguing for
the Communistic doctrine which
seeks to level all incomes irrespec-
tive Of brains or thrift.
The President says that he vetoed
the bill because it Is "the wrong kind
of tax reduction, at the wrong time"
This phrase will become famous in
political history as the prize boner
Of the age. For it implies plainly
that the wrong kind of tax reduction
will be all right at the right time
presumably next year when the
presidential campaign is in the off1ng
and when presumably Mr.. Truman
can strive for political credit even
for the wrong kind of tax reduc-
ton"
But next year the Congress will
pass the same kind Of tax bill 1t
did this year except that 1t will be
even more unpalatable for Mr..
Truman to sign, and when he signs
1t, he will make his message Of this
week look rather ridiculous.
Damage May Be Delayed.
The damage Mr. Truman did in
vetoing the tax bill will not be
apparent right away. 1t will be
apparent in the recession" that
could conceivably be ushered in as
a consequence Of his blupder, and
1t would be felt throughout the
world.
For Mr.. Truman, by his action
this week, may have killed all
chance Of helping the world trade
situation and European rehabilita-
ton. Export trade that has been
booming may decline severely. Then
there would surely be a recession.
The Republicans, so many of whom
don't want to vote more billions to
Europe, now have been given very
strong excuse-.Mr. Truman's own
words. For the President said:
with the present huge public
debt, 1t is of first importance that
every effort now be made to reduce
that debt as much as possible"
This means that debt reduction
is, in the Presidents opinion. para
mount. There are plenty of Repub-
ilcans who will take him at his
word. They will not vote billions
for Europe while Democratic.
President denies tax relief to the
American people.
Message Called Boomerang.
Unfortunately the Truman mes
sage, while intended to play politics
in order to gain support from the
left wing" really will prove a
with the average man,
who will not understand why the
$40 or $50 savings he was to get are
now being denied him. To lose a
80 per cent tax reduction is more
serious in the lower brackets than
to forgo 10 per cent reduction in
the higher brackets.
There is a surplus Of more than
a billion dollars coming on June
80 and surplus Of at least eight
billions is indicated for next year
yet Mr.. Truman is denying the tax
payers any relief from wartime
rates.
The Republicans ought not to
adjourn without passing another tax
bill-this one to be effective Jan
uary /, l948, and giving an even
greater reduction in rates to indi-
in the lower brackets. If
Congress surrenders to the executive
its authority to fix tax rates, the
legislative branch of the Govern
ment would be surrendering also
the independence 1t has exercised
for more than 160 wears