Evening star., 1947-03-22
(Tar Table on Page A.
BY the Associated Press

Senate and House Republican
leaders we're reported to have
agreed today to pledge a S.
$50, 100000 cut in President Tru-
mans budget, a $2,000,000,000
debt reduction and a "substan-
tial' cut in taxes.
The proposals were said by legis-
lators to have been laid today before
conferees attempting to adjust Sem
ate House differences over how deep
slash should be made in the Presi-
dents $37 500, 100000 budget for the
year beginning July l.
The $5,250000,00 would be COM
promise between the $4,500,0 100000
cut voted by the Senate and So
000,000,000 slash approved by the
House.
Congress is required to approve
a ceiling on governmental eXpendi-
lures under the Congressional Re-
organization Act passed last session.
Neither House had incorporated
the tax cutting pledge into the
original resolution, but House Re-
publicans held out for a statement
calling for a substantial" slash in
agreeing to the compromise figure
of a $4,000, 100000 reduction in the
$3.50, 900 100000 national debt
Tax Cut Vote Thursday.
The $3,840, 100000 tax-slashing bill,
already approved by the House Ways
and Means Committee, will be placed
before the House next Wednesday
under a procedure requiring men,
bers 70 vote this cut or none.
No amendments from the floor will
be allowed and the showdown vote
will come Thursday. Speaker Martin
said the bill definitely will pass"
Democratic leaders quickly took a
mo- t-at-all' stand, backing up
President Iruman's contention that
any Treasury surpluses this year
should be used for payments on the
national debt
| The legislation, approved, l6 to 9,
by the House Ways and Means Com
mittee yesterday, would lower by 30
per cent the taxes of more than
100000 little men" and give 20
per cent cut to most of the other
26,000,000 income taxpayers.
Rebates Proposed.
The cuts would be retroactive to
January /. Wage and salary with
holding rates would drop June 1 and
rebates would be given on over-pay-
ments since the first of the year.
Majority Leader Halleck predicted
that when the House vote comes
I'VE will pick up more Democratic
votes than we lose Republican votes.
We will be so near unanimous on our
side that it won't make any differ
ence" The Republicans have a
245-to-188 majority in the House.
Speaker Martin issued rallying
call for Republicans in formal
statement last night, saying:
THE Republicans have clearly
recognized for long time the dam
gers of excessive taxation and the
absolute necessity for tax cuts. We
promised the Nation lower taxes
and we shall keep faith with the
American people
These tax cuts are entirely prac-
ticable while at the same time pay
ments are made on the deot.''
Representative EngeI, Republican,
of Michigan, who has termed the
measure "a rich mans bill an
nounced he still intends to oppose
it during the House debate.
Declares Little Man" Neg ected.
Another Republican dissenter was
Representative Keating of New
York. He said the bill gives too
large a cut for high incomes and
not enough for the little man" He
told newsmen he will propose at
meeting of House Republicans on
Monday that the measure be revised
to shift more relief to the lower
brackets and less to incomes above
$4,000.
Former Speaker Rayburn, now
House minority leader, called on
Democrats to make a united stand
against the bill. He said present
world conditions make it impossible
! (See TAXES Page A-4D