Evening star., 1947-02-16
House Unit Will Start
Brief, Closed Hearing
On Income Tax Cut
By Robert K. Wodsh


limited hearings Wednesday morn
ing on measures to cut personal
income taxes.
Secretary of the Treasury Snyder
had not yet replied last night to ar
invitation to testify. But commit
tee spokesmen said they expect
him or a deputy to be on hand to
state the administrators general
opposition to tax reduction now and
especially to the controversial 20
per cent ac~oss-the-b board proposal
That bill, sponsored by Chairman
Knutson of the Ways and Means
Committee is only one of more than
a score already introduced to lower
personal income taxes either by re-
ducing rates or raising exemptions.
1t nevertheless is the crux of the
committees deliberations this week
and repeatedly has a good chance
of being approved by a committee
majority.
Opposition Seen on Floor.
It's chances on House and Sen
ate floors admittedly are not good,
It has encountered strong opposi-
ton from such influential Repub-
licans as Chairman Allen of the
House Rules Committee and Repre-
sentative Engel, Republican OF
Michigan. Several Senate Repub-
lican leaders have been lukewarm
or noncommittal. If not outspokenly
critical
They do not oppose immediate in
come tax reduction as party pledge
and a practical possibility in view
of the proposed $4,000 ,Ooo, 900
budget cut. But they repeatedly
feel the Knutson bills 20 per cent
cut on incomes up to 1902 900 and
10.5 per cent on incomes over that
amount might not be the best f1s-
cal method of making a 20 per
cent reduction, or the best political
method in view of claims that
brackets would not greatly
benefit.
Senate Vote Due on Excise Bill.
Before the House committee
meets, the Senate is believed likely
tomorrow to pass perhaps In
amended form the House bill freez-
ing excise taxes at present levels
Continuance of these levies for the
coming fiscal year was recommended
by President Truman. Unless ex-
tended, they would revert to 1943
rates next July /. Continuance
would produce approximately ST.
l30OO0,000 in revenue during the
fiscal period.
The Ways and Means Committee
Is under attack from practically all
Democratic House members, some
Republicans and a few outside nom
partisan groups because Of its de-
cision to hold closed sessions this
week.
The National Lawyers Guild
wrote yesterday to each committee
member, as well as Speaker Martin
and Minority Leader Rayburn, ask
ing if the closed hearing decision.
"is intended to express the indiffer-
ence of the committee for the
opinions Of the taxpayers of this
country" 81
Says Citizens Should be Heard.
Declaring that citizens are en-
titled to present their views on pro-
posed taxes before legislation is
enacted, the letter from Martin
Pepper, the guilds executive secre-
tary. states:
''1t appears that the committee
intends to jam through Congress a
tax bill which can be described in
the words of Franklin Delano
Roosevelt as providing relief not
for the needy but for the greedy
without giving the needy an oppor-
tunity to be heard"
The Lawyers Guild, Mr.. Pepper
said, favors income tax relief by
means of personal tax exemptions
of 81 500 for a single person and
$2,500 for a married couple, and
continuance of the present $500
exemption for dependents.
Tax Experts to Testify.
Committee spokesman said last
night that most of the officials to be
heard this week will be technical
witnesses" They will include tax
from the Treasury Depart
ment, Internal Revenue Bureau and
from the committees own staff. The
hearings probably will continue four
days.
Chairman KnutSon predicted last
week that the committee would re-
port out an income tax reduction
bill before March l and that it
would be passed promptly by Con-
gress. Senator Taft of Ohio, chair
man of the Senate Republican
Policy Committee, went on record
almost Immediately as holding that
no such income tax cut should take
effect before the start of the next
fiscal year, July l. The Knutson bill
would make the cut retroactive to
January l.
Closed Meetings Defended.
Defending the closed hearings,
Chairman Knutson, Representative
Mason, Republican of Illinois, and
Reed, Republican of New York, and
several other Ways and Means Com
mittee members cited two principal
reasons for this procedure.
First, they said, these hearings
are limited to the Knutson bill and
other House measures introduced
to date on the specific subject of an
immediate cut in personal income
taxes. The bill to be reported out at
this time will be a ''quickie" measure
and will not attempt to cover the
whole field of tax revision. The bill
vill be in no way the last word on
-ncome tax legislation, Mr.. Knutson
said.
Secondly, if the current hearings
were opened to all persons and Or
ganizations wishing to testify they
would go on for weeks, majority
members declared. They promise
full and open" hearings and
"plenty of time for all appropriate
witnesses" when the committee later
gets down to the lob of going over