Evening star., 1947-10-19
Knutson Sees Passage
OF Tax Cut Promptly
After Congress Opens
By Gould zkineoln

y FdSSage OF a TAX reduc ton bill
immediately after Congress
convenes, whether in special
or in a regular session in Jan
uary," was predicted yesterday
by. Chairman Knutson of the
House Ways and Means Com
mittee.
Mr.. Kuntson did not attempt te
give details of the bill which he
expects to introduce after it has
oeen considered by his committee
: 1t Will, however, call for lower
taxes on personal incomes for the
calendar year 1948. The supposition
is that 1t will follow generally the
lines OF the two tax bills which
President Truman vetoed at the last
session of Congress. They provided
reductions ranging from 80 to 10
per cent.
Hits Confusion In Capital.
The Knutson measure undoubted-
ly will include the community
property method of reporting tax
able income so that it will apply in
all States. At present it. applies
only in few States which have
enacted laws for that purpose.
-. Mr.. Knutson issued a formal
statement in disclosing his tax plans
which asserted:
. IF members of Roosevelt's official
family, such as Morgenthau and
Byrnes, continue with their revela-
tions. the Republican Party need
not make a campaign next year.
For campaign purposes we could
not hope to improve on these diaries
and the confessions of Mrs. Roose-
welt and the children. If it were
not SO tragic for the country and
the world it might be possible
to enjoy the announcements as they
come tumbling on one another"
1. Mr.. Knutson also criticised 1.-The
confusion and lack of program,
.both. foreign and domestic, which he
claims exists in Washington today
under President Truman. The
people of the country. he said are
in despair" over the situation.
Marshall Plan Wraith-Like
They cannot understand why MIR
Truman has failed to take a firm
and definite position on foreign and
domestic problems Mr.. Knutson
said.
ITO them the so-cslled Marshall
plan is a Traith-like phenomenon
which could easily engulf us if Con-
fress were to 60 along blindly in
Setting UP worldwide WPA."
Mr.. Knutson said that he had
found that people in a dozen or
more states which he has visited
since Congress adjourned were dis
satisfied with ''our vacillating and
supine" dealings with Russia.
The feeling is we'll nigh universal
that President Trumans foreign
policy, or lack of such policy, is TAX
ing us into World War III" the
Minnesota Republican declared.
More than once l heard the wish
expressed that we had another
Theodore Roosevelt in the White
House. There is definite feeling
that the White House and the State
Department should speedilysrecop=
cile their differences and present a
united front to Russia and her satel-
1ites."
Tax Hearings to Resume.
Mr.. Kuntson said the Ways and
Means Committee would resume
hearings on the revenue act of
1948" on November 4. Before that
date he expects to receive a report
from a special tax study committee
(which has been at work on q general
revision of the tax laws. This spe-
cial committee is to meet Tuesday,
Mr.. Kuntson said that if Repre-
sentative Doughton of North Caro-
lima, ranking Democratic member of
the committee and its former chair
man, is in Washington he will con-
suit with him and together they will
learn the progress which has been
made by the special committee. A
final report is to be made by the
Ways and Means Committee next
month.
: Chairman Taft of the Senate Re-
publican Policy Committee also has
predicted early passage of a new
tax reduction bill-a prediction in
which Chairman Milliken of the
Senate Finance Committee has con-
Cured.
Meanwhile, the United States
rbo nphar of roropoorco aa,lor.d /, ct
night that the combined burden of
Federal, State and local taxation
offers an ominous threat to future
prosperity"
1t made this observation in an
analysis of the outlook as to expen-
ditures, taxes and the public debt
during the fiscal year 1949, which
begins next July.
THE absorption by taxes OF saw
fngs which otherwise would be in
vested in job-creating enterprises
effers formidable obstacle to con-
tinuance of production and employ
nnent at high level the chamber
declared.
Although the extraordinary de-
mands in connection with world
recovery create an unusual situa-
tion setting up obstacles to such a
course, reduction in Government
expenditures and of taxes offers
the best hope of an improvement in
economic trends" the analysis con-
1nued.
Lower Saxes will lessen handicaps
to business and by encouraging
greater production will provide the
most effective antidote to imitation" "
the report commented ..
Tburrh aader FIeeted