Evening star., 1947-03-27
By the Assoeioted Press

AsSpA SoSlAodVlfC E1lScl, hcpuU-
lican, of Michigan told the House
today the Republican-backed
bill to- slash income taxes by
almost s4,O0O,00O.O0O "gives a
man who made the biggest prof
its during the war the biggest
tax relief"
Mr.. Engel, the first Republican
member to speak against the meas
ure, took the floor as the House
neared vote on the legislation.
His opposition was not expected toI
halt the Republicans in their drive
to push the bill through this after
noon.
Majority Leader Halleck sought to
interrupt Mr.. Engel for questioning,
but the Michigan member shot
back:
II have the floor. You can run
your crowd, but you can't run me,
brother"
Tells of Threat.
During his speech Mr.. Engel de-
clared that several wealthy men
have threatened an attempt to oust
him from Congress in next years
election unless he changes his stand.
"All I want is to give the low
income group break" he said, con-
tending that the proposed bill would
give a man and wife with 81 200 a
year income tax cut of So, while
giving the $1,000, ,0O0-a-year man a
$4,000 cut.
UNLESS fog is cleared from the
brain of some of our Republican
leaders, they will find themselves
once more a minority party when
the next election rolls around"
Meet Two Hours Early.
at 10 am, two hours earlier than
usual to assure vote before night
fall.
Minority Leader Rayburn, sup
porting President Trumans plea
that Congress emphasize debt pay
ments this year rather than tax
cutting, conceded that the Repub-
licans outnumbering Democrats
245 to 188-wouid pass the bill.
1t then will 60 to the Senate
where Senator Taft, Republican, of
Ohio indicated it will be revised to
make the tax slash effective July /,
instead of last January /. This
would hold the tax reduction in
1947 to 100000.
House Amendments Barred.
Under rule adopted yesterday,
the House must vote on the bill
on a take-it or -leave-it basis, with
all amendments barred.
AS the House approached a show
down vote, party lines solidified
behind these bitterly conflicting
contentious:
RepublicanS-The bill redeems a
campaign pledge. 1t would ease the
tax burden of low-income groups,
encourage risks by businessmen to
develop new plants and new jobs
and put "the ak to punitive taxes"
The COP spokesmen contended the
tax cut would leave money to begin
payments on the debt.
Democrats-It is bill to pay off
on a Republican campaign pledge
without regard to the needs of the
Treasury. 1t is "a discriminatory
patchwork of political expediency-
neither equitable, timely, nor sound"
The Democrats said the bill would
give "windfall" to persons with
large incomes.
Truman Veto Predicted.
Some Democratic leaders insisted
that Mr.. Truman would veto the
measure if it gets to his desk in its
present form.
Here's how the bill would work:
l. A 30 per cent cut for persons
with taxable income (gross income
minus personal. exemptions and de-
ductions), up to $1,000. This would
mean 80 per cent reduction for a
single person earning up to about
$1,650: married man with gross
income up to $4,000; a married cou-
pie with one child to $2,750; and
married couple with two children,
$780,
2. A 20 per cent cut for persons
with taxable incomes above 1896
until income reaches $302, 900. Any
income above 100000 would get
los per cent tax cut.
3. A notch" provision whereby
each person with taxable income be-
tween $1,000 and $1.395 would get
graduated cuts ranging from $57 for
the $1,001 income to $53 for the ST.
395 income This is done to prevent
too sharp a transition from the 80
to the 20 per cent cutting levels.
4. Persons over IS would get an
extra $500 personal exemption,
bringing their exemptions to $1,000.
II they elect to take advantage of
this law for annuities such as those