Evening star., 1947-05-25
Economy Drive
|0f 6. 0. ?. Faces
|2Major Tests
DefeutSeen I omorrow
For Democrats on
Delay for Tox GUS
By J. A.. o'Leary

lace Two major tests tomorrow
in their drive to cut taxes and
appropriations.
On the floor they expect to beat
by slim margin the Democratic
move to postpone the $4,000, 900 900
income tax reduction bill for two
weeks. Both sides have agreed to
call the roll on this motion at 4 pm.
In the Appropriations Committee,
the COP leaders will seek action
at the same time on the $12,388,-
600 900 Treasury Post Office supply
bill, in which the House made
substantial part of the total cut 1t
is claiming thus far from President
Truman's budget.
House Action Recalled.
The House more than two months
ago carved 1897 ,072,750 from the
Treasury-Post Office estimates,
which is about a third of the aggre-
gate amount Republican spokesmen
claim has been proposed to date on
all 1948 appropriations.
The economies to date add up to
about $2,700, ,000,0 900. but most of the
items making up this total have not
yet weathered the storm of Senate
debate.
Included In the House cut from
Treasury-Post Office funds is the
disputed $800,0oo,o0O reduction In !.
the Treasury's estimate for refund-
ing erroneous tax collections next
year. Democrats insist this money
will have to be appropriated later If
the Treasury estimate proves cor
rect, and that, therefore, 1t is not
an actual saving.
Republicans contend their plan to
lower taxes will reduce the amount
needed for refunds, and that the
House cut is saving, until proven
otherwise.
Taft Sees Vote Changing.
Chairman Taft of the Senate Re-
publican Policy Committee said yes
terday some of the Senate Demo-
Gratis who are trying to postpone the
tax cuts until more appropriation
cuts have been voted on, will be
found later voting against the re-
duction in expenditures.
''I am not saying all of the Demo-
Gratis will oppose cuts in appropria-
tions," Senuator Taft said, "for I be-
lieve some of them are sincere in the
stand they are taking against any
action on the tax bill now. But q
great many Of the Democrats who
are screaming now about balancing
the budget and making payments on
the debt are the same ones who will
be voting against us when we try to
cut appropriations in the Senate"
Both Senator Taft and Chairman
Millikin of the Senate Finance Com
mittee predicted the Senate will
defeat the Democratic motion tomor-
row to put off the tax bill until
June 10. With few exceptions, the
vote is expected to follow party
lines. The Republicans hold 81 Of
the 95 occupied seats. and they do
not expect enough defections to upset
their majority.
COP Leaders Confident.
Once this postponement hurdle
is cleared, the COP managers are
confident they will succeed in pass
ing their revised version of the
House tax bill, possibly by the end
of the week.
For the year 1948 the Senate rates
are almost identical with the House,
starting with 80 per cent cut in the
lower salary brackets, and tapering
off to 10.5 per cent on the highest
incomes.
For the current year, however,
the Senate bill cuts these rates in
half and applies them to the period
from July / to December, whereas
the House bill made the cuts retro
active at the full rates to last jan
uary. For the next six months the
Senate bill would make cuts rang
ing from Is per cent to SIS per cent.
Most observers believe the Demo-
Gratis will muster their greatest
strength on the postponement mo-
ton tomorrow. If that fails, Re-
publicsns predict they will succeed
in preventing changes in their sax
plan by more decisive votes.
Split Tax Favored.
A strong Democratic vote is ex-
pected for an amendment to let
married couples in all States split
their incomes for Federal tax pur-
poses-an advantage now enjoyed
only in the nine States having COM
munity property laws.
There also will be one or more
Democratic attempts to give q
greater degree of tax relief to the
Iow-income groups by raising per-.
sonal exemptions.
The fact that the House Ways and
Means Committee has begun hear
Ings on a thorough, long-range re-
vision of basic tax laws, to be acted
On next year, is counted on by Sen
ate Republicans to help defeat the
universal application of the conmu-
nifty property rule now. They say
This is the kind of a tax change
which should go into a general re.
vision of the revenue laws.
II all budget cuts now In the max.
ng go through, the Republicans still
must save about 1880 ,0o0, 600 to
reach the Senate's minimum econ.
ony goal of $4,5o0 900 900. They
nope to find $1,000, ,000, 900 from un-
spent past appropriations that could
be rescinded, leaving another $780,
100000 to be cut from five appro-
priation bills not yet reported to the
House. !.
In pushing their $4,000, ,0o0, 900 tax
cut, however, they argue that the,
Treasury will have bigger surplus
On June 80 than has been forecast.
They believe this will be sufacient
TO meet the tax cut, even If they
fall short in their economy drive.
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