Milford chronicle., 1947-06-20
Tax Cut Veto Upheld; Issue
For Election In 194S Drawn
Continued from flrst page)


philosophy repudiated by the peo-
pie last fall. 1t will be even more
emphatically repudiated in 1948.
The people have determined
against a New Deal fifth term" 3.
The national chairman said 1.-The
people are entitled to relief from
the. back-breaking, war-peak taxes.
So close was the vote in the
tense, strained House that Repub-
lican Leader Halleck of Indiana,
demanded a recapitulation. How
ever, the recount confirmed the
original tally.
A shout went up from the Demo-
cratic side when the final vote was
announced.
1t all sums up to this:
Some 4S,00O,0O0 income taxpay-
ers will go right ahead paying the
same federal taxes for the time
being.
The Republicans and Mr.. Tru-
mans clashing ideas on. whether
this is right or. wrong will go be-
fore the people in the next cleo
tion. ...-
Even if Congress passes a tax
cut bill early in the new, session
starting in January, the result of
Democratic and Republican atti-
tudes on a 1947 cut would never
theless surely be carried over in
to the campaign.
Representative Knutson (R-
Mimi told. reporters the House
Ways and Means Committee, which
he heads, will continue studies OF
a general overhauling of the tax
structure. He previously had said
this would mean further tax cuts
} in 1948, but now he is not so sure,
he told reporters.
The bill would have cut income
taxes by 30 per cent for those with
income of $1,000 or less, by 20 pei
cent for those with incomes up to
$4,000, by Is per cent for those
, between $137,O0 and 100000 and
by 105 per cent for those above
, 100000.
These reductions, at the annua
! rate of $4,000, 100000, would have
, gone into effect July 1.
, In rejecting the bill on Monday
Mr.. Truman called it unsafe
, from the standpoint of government
: finances and said it offered "th'
= wrong kind of tax reduction, at thu
: wrong time" He added that ;
good bill would give greater
proportion of relief to the low in
5 come group"
l Since two-thirds of both the Sen
| ate and House is required to over
! ride the President, the House ac
= ton killed the tax bill. 1t wa
i presented by Knutson as Hous
3 Bill No. when Republicans too
control of Congress in January.
= Had the House overridden tn
y President, it had been deemed cer
: tain the Senate would have kille
J. the bill.
:, Former Speaker Rayburn of Tex
+ as, the Democratic leader VIII
= spear headed the battle for tn
= President, said when the vote wa
y announced:
! I'm glad it was sustained. / wa
l. opposed to this kind of tax pre-
# vision at this time. What "
~ should do is pay off some of OF
:, debts while there is high incon
and while we have adequate ia
IL revenues"
h In thrusting the issue tOwal
194S, the Republicans accused M
Truman of wanting to put off ia
reduction until next year-for p
!; litical purposes.
:. Knutson said:
"This ends all efforts for t;
S, relief this year. What We do ne
al year will depend on events. L
IN apprehensive that our foreign cor
! mitments will turn out so huge
u to make tax reduction next ye
le inadvisable."
IN CIO President Philip Murr
issued a statement commending t
President for the veto, describi
IL the Knutson measure as this a
IN the greedy proposition"
Is, Halleck told reporters the We
ne was executive assumption of lie
va islative authority without par;
lel." ~
ISL He quoted Mr.. Truman as sayi
after the Republicans won