Evening star., 1947-06-12
Naming Of Outsiders
|ToAdyise Congress on
Tax Matters AssaiIed
sy III. At.eeis,.d Pres,

House Ways and Means Committed
attacked today as . precedent
dangerous to the democratic process
the appointment by Chairman
Knutson OF an 11-member commit
tee outside Of Congress to advise or
tax matters.
Democratic Representatives Din
CELL OF Michigan, Eberharter q
Pennsylvania and Forand of Rhode
Island issued = joint statement say
ing Mr.. Knutson exceeded his au-
thority in appointing the group
headed by Roswell r. Magill, Co
lumbia University law professor and
Wall Street lawyer"
Mr.. Magill was an Undersecretary
O fthe Treasury in the Roosevelt ad-
ministration. Gov. Frank Carlson
OF Kansas, former Republican men,
Der Of Congress, is vice chairman OF
the Advisory Committee.
The controversy arose as Presi-
dent Truman considered his deci-
sion whether to sign or veto the
"A, ,oo0. .00o, 900 individual income tax
reduction bill-an action he must
take by midnight Monday.
Snyder Hints He Urged Veto.
A strong hint that he has urged
MIR. Truman to veto the bill was
given by Secretary of Treasury
Snyder, who said we must know
what our expenditures are going to
be before we cut our revenues"
The Dingell Eberharter Forand
statement objecting to Mr.. Knut-
sons appointment of the Advisory
Committee said it would be a dan
gerous precedent for any outside
group to advise "in final decisions
in executive ways and means ses-
sions on what and whom to tax
at what rate and with what exemp-
tions."
Mr.. Eberharter said the move Is
part Of the Republican program to
reduce income tax primarily upon
the rich, and to impose host of
Federal excise or sales taxes which
everybody knows falls heaviest on
the poor"
First Committee Meeting.
The committee held its first meet
ing today and was told by MIR. Knut-
son "the Congress and the country
will appreciate your willingness to
perform this great public service. u
Secretary Snyder has made no Sc
cret, before congressional commit
tees and elsewhere, OF his belief
that a reduction in the public debt
should take precedence over any
tax cuts this year.
But his latest statement, at q
news conference yesterday, was
widely interpreted to mean that
he has suggested to the President
that he turn down the bill slashing
income taxes from 80 per cent in
the lowest brackets to 1o.5 in the
highest.
Congress Action Called Hasty.
II am not against the principle
Of tax reduction" Mr.. Snyder said
"I am thinking of the financial sta
bility of this country and of oui
fiscal policy" III.
He said that in his opinion Con-
gress acted hastily" in voting to re-
duce revenues before it finished ap-
propriating for the fiscal year which
starts July l.
I'VE must know what our expen-
ditures are going to be-" he said
before we cut our revenues. That
might make those expenditures ex-
ceed the revenues"
Payroll Tax Freeze Approved.
Also in the field of taxes, the
Ways and Means Committee late
yesterday unanimously approved q
two-year freeze of the Social Secur-
ity payroll tax at per cent, prevent
ing q $4,000, 900, 900 annual increase
in the levy beginning January /.
The action, If sanctioned by House
and Senate, would forestan an auto
matte increase in the tax next year
from l per cent to rs per cent
against employees pay and employ
ers' payrolls.
However, the committee set up
formula for increases in the pay
roll levy beginning in 1850, when it
could climb to is per cent on en-
ployer and employe. The tax could
continue under the formula at is
per cent through 1856, when it
would become per cent on each.