Evening star., 1947-06-02
BY the Associated Press

BY the Associated Press
Congress got set today to
shunt the $4,0o0,00 ,0o0-a-year
tax cut bill from the Capitol to
the White House.
First the House and then the Sem
ate planned to stamp final approval
on the compromise measure pairing
individual income taxes by from so
to los per cent beginning July /.
The congressional action was q
foregone conclusion.
Not so President Trumans atti-
tude toward the bill.
Before next week is out, the Pres
ident will have to decide whether to
veto the measure. sign it or left it
become law simply by doing nothing
about it for 10 days.
Martin Expects Approval.
Mr.. Truman has said repeatedly
that this is not the time Tor tax
cutting but Speaker Martin predict
ed in a statement last night that
the President will sign the bill as a
safeguard against a business slump.
Democrats were making no FORE
casts of White House action, but
one minority party member who
voted against the bill declared the
Republicans will believe they have
the 1s4S election in the bag" if there
is veto.
Although voted against the
bill" Senator johnson, Democrat, of
Colorado told reporters, st realize
that veto of the tax cut would be
unpopular I know enough about
people to know that. The Republic
ans would rejoice in veto"
Senator Johnson and Senators
George, Democrat, of Georgia, and
Taft, Republican, of Ohio, all menu
bers of the Finance Committee
which passed on the bill, predicted
that a presidential veto would mean
no tax cut at all this year.
Martin Sees Business Aided.
Speaker Martins statement said
he hopes Mr.. Truman will CO.
operate in our program to prevent a
sharp recession by signing the bill.
These reductions from the confisca-
tory wartime taxes will enable the
American business man, small and
large, to expand his business and
produce more vigorously.
Increased production will defeat
initiation and provide more steady
jobs at good wages. The tax reduc-
tions provided in the bill will in i
crease the purchasing power of the
worker =. Through lower prices,
they will raise the value of every
dollar he spends. -. Such in
creased purchasing power will not
only rescue the worker from inf1a-
tionary prices, but will stimulate
the buying necessary to maintain
our high level of economy.
This bill = will maintain
Americas solvency. More than
half of the revenue decreased by
the tax rates will be returned to
the treasury through increased
spending and expanded industrial
activity.
Slump Called World Blow.
ut is absolutely essential for us
to avoid depression if we are to
keep America solvent, and able to
contribute to the rehabilitation Of
the rest of the world. If America
should experience slump now, the
effect would be disastrous upon
every country. The tax reduction
bill will go far to prevent this.
THAT is why I hope and believe
it will be signed by the President"
Individual expressions of opinion
on the tax program continued from
Senators and Representatives, the
latest being Senator Tydings, Dem
ocrat, of Maryland, who declared
that the Senate took tremendous
gamble" when it voted for the $4,-
900, 100000 tax cut.
He said, in weekly radio address,
that the Senate planned to cut
expenses of Government agencies by
only half as much.
Calls Action Unbusinesslike.
'The Congress has not approached
the matter in the conservative and
businesslike fashion which prudent
businessmen would employ in their
own affairs" Senator Tydings said.
Congress has decided to take a
chance that our income from tax
revenues will be greater than ex-
pected and that these extra revenues
will be sufficient to fill in the gap
between the four billion dollar tax
reduction bill and the overall saw
-ings in expenses, probably about
two billion dollars"