Evening star., 1947-05-21
COP .Confiden1
OF 0verruling
Tax Bill Delay
Arguments for Cut
Opened in Senate
ByMiIlikin
BY ihs A..oe;o,ed Pres.

Senator Mltlik1n, Republican,
of Colorado predicted today that
Senate opponents OF d 1947 in
come tax cut will reach their
.high- water mark on a post
ponement vote-but that the
mark won't be high enough. to
block the tax slash.
The Senate Finance Committee
chairman offered the forecast as he
made ready to present his opinion
arguments in favor of the bill today
The legislation, estimated to trim
81, ,00o, 900 600 a year of individual
income tax bills beginning July. l..
was called before the Senate late
yesterday by unanimous consent.
Senator Millikin said the decision
on Democrat-sponsored motion to
postpone consideration of the bin
until June 10 will be "the crucial
vote" He also expressed confidence
that the motion will be defeated.
Lucas Optimistic.
Democratic strategists expect to
pick up several Republican votes
while holding all their own. Even
though the present membership
lineup stands at 81 Republicans and
A Democrats, Senator Lucas of
Illinois, the Democratic whip, con-
tended there is "an excellent chance"
the postponement motion will carry.
1t was to be offered by Senator
George Of Georgia, ranking Demo-
crat on the committee, Immediately
after Senator Milnkin concludes his
opening speech. Senator George
and other Democrats contend Con-
gress should have q good look at the
spending prospects before it passes
on tax cut, and say that all the
major money bills should have
cleared the House Appropriations
Committee by June 10.
"The idea is to get the pattern OF
the spending" Senator George told
reporters.
'fAny tax cut should be based on
slash in. the expenditures budget.
Any other method is a gamblers
chance"
Senate Republicans figure they
can hold expenditures for the next
fiscal year down to $33, ,000, 900 900,
which is $4,5o0, ,000, 900 below Presi-
dent Truman's budget. They believe,
too, that the Government income
win incrsase to M. .4o0, ,0O0, 900, which
would leave q margin of $780,
00o, 900 f6r tax reduction and pay
ments on the $25s, ,o00, 900 600 ma
tional debt.
May Vote on Motion Tomorrow.
While both Senators Millikin and
George said the postponement mo-
ton probably would be voted on
tomorrow, Senator Lucas thought It
would be delayed until Friday or
even Monday.
Senator George told reporters that
If the tax legislation were delayed
until June 10, and then approved. 1t
should be possible to make the cuts
effective July i. He said the House,
which already has passed the bill.
might accept Senate changes with
out a conference. and that the
Internal Revenue Bureau should be
able to get new withholding tax in
structions to employers in time.
The Senate bill would make the
reductions effective in midyear
rather than retroactive to last jan
uary /, as provided by the House.
A 80 per cent cut would be
granted income tax payers whose
income, after exemptions and de-
ductions, is 81 900 or less. On in
come between 81 1896 and $79. 100, the
reduction would be 20 per cent, with
a Is per cent cut applying between
SIS, 100 and 1902 400, and 105 per
cent of in the highest brackets.
phone Tax Repeal Asked.
The telephone industry asked Con-
gress, meanwhile, to repeal the ex-
else levies on communications.
This would save taxpayers another
s400, ,000, 900. The excise is levied on
telephone, telegraph and other COM
service.
The recommendation was placed
before the House Ways and Means
Committee in statements submitted
by the American Telephone 81 Tele-
graph Co., A. T. & T.'s associated
companies, and the United States
Independent Telephone Association.
1t was the first recommendation
for a new tax cut in the commit
tees move toward general reyisions
of the tax structure. which Chair
man Knutson said should mean
substantial" tax reductions beyond
the current $4,000, 900 900 bill. The
committee plans to write the gen.
eral revisions into law next year.
The telephone industry asked
that the communications excise re-
pealer be made a part of the 194S
revision. The industry described
this excise as tax upon a neces-
sary business and social service and
Y,o<- a a1yty1fry,'s foy