Evening star., 1947-05-27
Democrats Seeking
10 Broaden Bill for
income Tax Slash
sy fhs Assoeiossd Press

Democrats, beaten in their
drive to delay Senate action on
tax cutting, sought today to
broaden the Republican-backe
bill, which calls for a cut of
81, ,000, ,O00, 900 4 year In indiyid-
ual income levies.
With COP, leaders pressing for
passage this week Of their measure
trimming present tax rates by from
los to so per cent, Senator Nc
Clellan, Democrat. of Arkansas,
called up his amendment to spread
the so-called community property"
formula to all States.
Under this formula, man and
wife can divide their income. even
If the wife doesn't earn anything,
and take advantage of lower rates.
Chairman Millikin Of the Senate
Finance Committee predicted this
proposal would be beaten, although
he conceded 1t Is attractive" to
many members who have been hear
ing from their constituents about
the tax advantages of living in the
nine community property" States.
Extra $50 Millions Cost Seen.
Senator Millikin told a reporter
its adoption would cost $3.50, ,OO0,-
900 in addition to the $4,000 900 900
provided in the pending bill. Not
ing the matter Is being studied by
the House Ways and Means Com
mittee for possible inclusion in q
new tax bill next year, he expressed
hope that Congress will put off that
phase of tax reduction until then.
Senator Butler, Republican, Of
Nebraska, a Finance Committee
member who has been interested in
having the community property
proposal installed III Federal law,
put the revenue loss at 1000, ,000,- :
900 yearly.
And Congress can't afford to add
that to the tax cuts this year, he
said in a statement.
A proposal by Senator Lucas,
Democrat, of Illinois, which would
delay the effectiveness of any tax
reduction until January /, also was
in line for Senate consideration.
Great Show Of Solidarity.
Senator Millikin said he is con-
fident the Republican lineup which
defeated yesterdays motion to de-
lay all action until June 10 will hold
to force through the July ef1ec-
tive date. The House previously
had voted to carry somewhat SIM
liar tax cuts back to January l..
With their greatest show of SOL
idarity since January, the Repub-
licans turned back the delaying mo-
ton, offered by Senator George,
Democrat, of Georgia. by 48-to-44
vote. Only two. Senators Morse of
Oregon and Wilson of Iowa, left the
Republican ranks.
The Democrats voted soldly after
arguing that the Republicans are
taking a chance by cutting taxes
now, before they know how much
spending Congress is going to au-
thorize for the year beginning
July /. .s
Senator Taft of Ohio, chairman OF
the Republican Policy Committee,
retorted that the Governments sur
plus for the year is likely to be So
900, 900 900, of which considerable
will be left to pay on the debt and
to meet contingencies" after the
tax
Defeat of the George motion came
after Minority Leader Barkley had
led an attack on the bill with an
assertion that Republicans are fore
ing the issue for political expedi-
ency." He said a tax decrease now
would only add to imitation
But Senator Taft replied that
Congress will be taking the risk OF
"socializing industry" If 1t leaves
taxes at their present high rate and
creates a situation in which the
Government might have to take
over"