Evening star., 1947-06-07
Taft Challenges
Truman Stand
Against 1axCut
Recalls Approval
Of Reduction for
Corporations in 1885
BY the Assoeioied Press

Senator Taft, Republican, of
Ohio today demanded to know
how President Truman can argue
against tax cut for individuals
when he gave his blessing to
one for corporations in 1945.
Pouring new ammunition into his
running fight with Mr.. Truman over
economic issues, Senator Taft told
a reporter:
TT has been suggested by some
that the President should veto the
tax bill because it might lead to a
deficit If we have serious recession.
But only two years ago the Presi-
dent recommended and approved q
reduction of $4,000, 100000, for the
most part for corporations. when we
faced a deficit of $4,000, 100000 in
the fiscal year 1896"
The tax bill now before the Presi-
dent would save individuals about
$4,000, 900 900 by reducing levies 105,
20 and 80 per cent in various
brackets.
Truman to Speak Tonight.
Mr.. Truman is expected to define
sharply in a, major speech in Kansas
City tonight some of his differences
with congressional Republicans over
domestic policy. He will talk before
veterans of the 35th Division, In
which he served in World War I.
There was no indication whether
he would reply to Senator Taft's
assertion yesterday that Mr.. Truman
and the Democrtic administration
must bear the responsibility for
having created all the basic con-
ditions which compel high prices"
Meanwhile, Senator Taft began a
new round in battle which started
last Tuesday with jibe at the
administration, was carried on
Thursday by hot news conference
retort from the President and kept
up to date yesterday by the Ohio
Senator's latest blast.
Mr.. Truman took particular ex-
ception to remark by Senator Taft
in an interview that apparently the
President had sidetracked a cam
paign to keep prices down in favor
of heavy spending abroad that will
keep them up"
Demands Tax Bill Signing.
Senator Taft argued in his state
ment yesterday that the way to get
prices down-the core of his argu-
ment with the President-"is to cut
Government expenses and cut
taxes" He added: so let the Pres
ident sign the tax bill" -
Renewing this demand today, Sen
ator Taft told reporter he sees
no reason why the President should
deny individual taxpayers a sub
stantial tax reduction similar to that
given to business in the 1945 Tax
Act which repealed the excess profits
tax.
The 1945 tax bill cut levies for
corporations more than $3,100,000, =
900. Individuals got reductions esti-
mated at about $4,000, ,0O0,000
Senator Taft argued that tax cut
ting would not be inf1ationary be-
cause it does not increase costs nor
demand for goods, but simply shifts
purchasing power from Government
spending to private lending"
AS for his economic theories,
which Mr. Truman had called "fal-
lacious and dangerous" Senator
Taft said the President had been
"attributing to me lot of economic
views on wages and prices which I
have never expressed"
Statement Challenged.
He challenged the President to
show that he ever had said anything
iustifying the following quotation
in Mr.. Trumans Thursday state
ment: THE Senator states that the
only way to bring prices down is to
reduce the demand for goods
Senator Taft said he had always
argued that increased production
was needed to keep prices down.
Asserting that President Truman
had removed remaining controls
after Congress finally passed an
OPA bill last year, the Ohio Senator
said the President apparently de-
cided IF he was not allowed to bust,
h proposed to boom"
Having created all the basic con-
ditions which compel high prices,
Senator Taft said. "he blames busi-
nessmen. none of whom have any
tSee TAFT. Page A-3.)