Evening star., 1947-03-08
Tax Refund 'Savinu'
Of SSo0,0O0,OOO Hit
As 'Phony' Economy
Democrats Brund Talk
Of Reduction 'Shum'
Based on Future Events

House Democrats and Repub-
licans are preparing for a lively
floor debate Monday over wheth-
er an $500, 100000 cut in the
amount the Treasury may spend
for tax refunds in 1948 is real or
"phony" economy.
The ink was hardly dry on the
big s12,3ss, ,02s, ,s71 Treasury Post
Office appropriation bill yesterday
when Democrats began to ridicule
the reduction in tax refunds as a
sham" based on anticipated fu-
ture changes in the tax laws.
Chairman Taber of the Appro-
priations Committee, brushed of
the Democratic criticism with the
statement 1t was to be expected
from those who want expenditures
to continue at an unjustifiable
rate" He said the Treasury's own
figures show $500, ,000, 900 cut could
have been made in tax refunds even
If no allowance was made for con-
templated tax revision.
OPA Death Agreed Upon.
While this skirmish was going on,
House and Senate conferees on the
urgent deficiency bill met and
agreed on the Senate's June 80
death for what remains of the Of
flee Of Price Administration, the
Civilian Production Administration
and the Once of Temporary Con-
trolls.
The conferees allowed OPA $14,-
100000 net in the original House
bill for liquidation, but this was
about 100000 less than the Sen
ate had voted for. About half of
this sum is for terminal leave pay
of departing employees.
Representative Gore, Democrat, of
Tennessee, who called the $500, ,OO0,-
900 cut in future tax refunds "a hid
den ball trick" suggested today the
Republicans could make a real saw
of $33, ,000, 900 in this field by reduc-
ing the interest rate on tax refunds
AioiA W per CeQC.
Slash in Rate Anticipated.
Republicans insisted that it is
reasonable to expect Congress will
reduce the general level of income
taxes later in this session, which
will justify the lower refund es-
innate for 1948.
Mr.. Gore also contended that, on
the basis of less than billion chop
ped from this first regular supply
bill, the House Republicans would
have to abolish every other Federal
agency except the Army and Navy
to achieve their overall economy
goal of 5000, ,000, 900.
He argued that the $12, 2,28s ,029 ,971
Treasury-Post Office bill is one
third Of President Trumans entire
budget. OF the approximately $24,-
000, ,O00, 900 involved in the remain
ing bills, Mr.. Gore said $19, ,0O0, ,O00,-
600 represents the Army, Navy and
Veterans Administration.
The Appropriations Committee
pointed out in its report yesterday,
however, that Of the huge total cover
by the Treasury-Post Once bill
more than $4,000, 900 900 is in per-
manent items and trust funds, such
as the 5000, ,000, 900 interest on the
public debt. These items are beyond
the control of Congress, the commit
tee argued, and bring the total sub
ject to congressional action down to
s3,2o2, ,05o, ,75o.
Interest Change Urged.
Mr.. Gore said reducing the inter-
est rate on tax refunds would save
money at the expense of corpora
tions which regularly overpay their
taxes.
"You will see some of the same
names Of big companies on the
refund list year after year." said
Mr.. Gore. They can't get pei
cent anywhere else, although I'm
not saying they deliberately over
pay"
Mr.. Gore would not change the
6 per cent interest rate on taxes
not paid on time.
Commenting on the final agree
ment on OPA, Senator Bridges, Re-
public -, Of New Hampshire, said the
agency must close down June 80,
Ior sooner unless drastic reductions
in personnel are made in the mean
time.
The chief remaining functions
Of the agency are rent, sugar and
rice control. Congressional commit
tees are considering separate bills
to continue some form of rent and
sugar supervision, but decisions have
not been reached.