Evening star., 1947-02-17
TaxCut Plans
Halt Until Size
Of Budget Is.Set
Knutson Postpones
Committee Sessions
Due Wednesday
BULLETIN
BULLETIN
The Senate this afternoon
passed a bill to retain excise
taxes at their wartime rates.
BY the Associofed Press

Postponement of any consid-
Grafton of tax cuts until Congress
determines how much to slash
the 1948 spending budget was
announced today by Chairman
Knutson of the House Ways and
Means Committee.
Hearings previously had been sci
to begin Wednesday on Mr.. Knut-
sons House bill No. / calling for q
20 per cent across board" cut
in individual income levies.
Mr.. Knutson announced that the
controversy over how much to trim
President Truman,s 37,500, 900 ,00t
budget also will cause delay in hear
ings on reciprocal tariff operations
These hearings had been set tenta-
lively to begin February "a.
No new definite dates for tax OF
trade hearings were set Immediately
In statement, Mr.. Knutson saic
that when February 19 was seleceto
to open tax considerations, sit was
anticipated that final action would
be had by that date" on fixing 8
congressional budget ceiling.
"Gag" Cry Raised.
Republican House leaders had an
nounced earlier that they will try tc
prohibit any amendments to pro-
posal for $6,000,000 900 budget slash
and Representative Cannon, Demo
crat, of Missouri Immediately raised
the cry of gag"
Chairman Taber of the Senate
House Budgetary Committee told re-
porters after a top-level Republican
House conference that he plans to
ask the Rules Committee for rule
under which no amendments could
be presented when the resolution
comes up on the floor Thursday.
Mr.. Taber said this would necessi-
tate the Houses voting outright ap-
proval or disapproval of the s6,000,-
100000 cut in the original budget
proposal.
He added that the resolution will
be debated for four hours before a
vote is called.
Mr.. Taber explained that it was
decided to place the resolution be-
fore the House Thursday, instead
of Wednesday, as originally planned,
so that a Republican conference
could be held Wednesday. Purpose
Of the conference, he added, will be
ito acquaint the membership OF the
actual situation"
Cannon to Fight Rule.
Mr.. Cannon, on learning of the
Republican plans, told reporters he
would fight the rule foreclosing the
presentation of amendments.
"It would be gag" he said. "On
such an important matter the House
should have an opportunity to act
as the majority desires"
The Missourian is former chair
man of the House Appropriations
Committee.
The Republican strategy was ar
ranged at a meeting of Speaker
Martin, Chairman Allen of the
Rules Committee, Representative
Wigglesworth, Republican, of Mas
sachusetts, Appropriations Commit
tee members, and Mr.. Taber.
Prior to Mr. Taber's announce
ment, Senator Taft, Republican, o1
Ohio, asserted taht Congress car
cut income taxes by $500 900 ,00(
even II it doesn't vote the full $6,000,.
100000 budget cut.
Thinks 6 Billion Too Big.
Senator Taft called the Senat,
Republican Policy Committee intt
session today to decide what to dt
about counterproposals by Senator
Millikin, Republican, Colorado, Cur
ney, Republican, of South Dakot'
and others to slice only $4,500 ,000, ,00'
off the budget.
The Ohio Senator told reporte
he personally thinks the $4,000, 900,
900 proposal is too big bite TO
the party to guarantee at this time
"If we can cut expenditures tina
much as appropriations bills com
along, without too deep a reduction
in national defense items, fine,
Senator Taft said. But don't wan
to promise something we may fln'
1t impossible to fulfill"
Senator Taft indicated he will sup
port the $4,000, 100000 propose.
which already has attracted tn
backing of Senator Vandenberg, Re
publican, of Michigan, the Senate
presiding officer.
With such a cut and the increas
in revenues which would occur wit
the extension of excise taxes tha
otherwise would expire June 81
Senator Taft said he believes tina
there still would be margin Q
$4,000, 100000 between expected rev
enues and expenditures in the yea
beginning July l.
II want to split that up by usin
$500, 100000 to reduce taxes and b