Evening star., 1947-01-26
Democrats Preparing
Blast Against COP.
Tax Plans in House
By Robert K. Welsh

/ By Robert K. Welsh
The three-hour House debate
next Wednesday on continuance
of wartime excise taxes will set
off a Democratic blast against
Republican plans concerning
Ievies on incomes as well as So
called luxuries, minority mem
bers disclosed yesterday.
\ Democrats will join the COP in
passing the Grant bill Indefinitely
extending the excises which other
wise would go back to 1943 levels
July / under President Truman's
proclamation ending the period OF
hostiities.
They repeatedly are ready, how
ever, to accuse the Republicans OF
going farther than the Presidents
budget message suggestion that
Congress prevent the automatic
lapse of those taxes next July.
A minority leader declared yes
Iterday that some of his colleagues
will ask "how permanent" the Re-
publicans propose to make the war
time excise taxes, especially those
on such poor mems necessities" as
light bulbs, cosmetics, amusements,
telephone tolls, and, perhaps, beer.
Forand to Lead Drive.
Representatiye Forand, Democrat,
of Rhode Island, a member OF the
Ways and Means Committee and
chairman of the House Democratic
Conference, will spearhead the Mi
nority drive against the income tax
reduction program of Committee
Chairman Knutson, Republican, of
Minnesota.
Mr.. Forand said yesterday he
favors easing the income tax but
not the supposedly across-the-
board 20 per cent cut" provided in
the bill introduced by Mr.. Knutson
early this month. He will introduce
bill for a per capita exemption OF
$7OO.
This would result in a decrease OF
approximately $500, 100000 in tax
revenue. The Knutson proposal for
reductions in levies on incomes up
to $500, 900, would cause a drop OF
about $3,0O0,000, 900.
Representative Forand contended
that his plan not only would help
more people in the lower brackets
but would give those with lower in
comes bigger purchasing power.
This, in turn, would tend to keep ma
tional income at a. higher level and
ultimately bring increased revenue
from other forms of taxation, he
said.
Will Criticize Knutson Plan.
Some minority members indicated
that in Wednesdays debate on the
excise tax continuance bill they will
offer "facts and figures" to show
that under the Knutson bill man
with an income of 100000 would
save more than $4,000, whereas the
man with $4,000 income would
save only $947. And the man with
81 200 income would save "the huge
sum of $8," they asserted.
In the opinion of these Demo-
Gratis, a discussion of the COP in
come tax reduction proposals will
be in order during the debate on
the excise tax measure. Mr.. Forand
contended yesterday that the size
and extent of excise taxes ties in
with the method of lowering in
come taxes. Continuance of the
wartime excise levies is necessary
as an expedient until the. overall
budget picture is clearer, but any
effort to make most of them perm
anent will be fought by House DEM
ocrats, he indicated.
1t was recalled that House DEM
ocrats in 1945 passed bill to roll
back the wartime excise taxes on
jewelry, furs, luggage, liquor, en-
tertainment, cosmetics and many
other items to 1943 levels. The
Democrat-controlled Senate refused
to go along but put through re-
peal of the excess profits tax.
Advance Rumblings Heard.
Advance rumblings of the House
debate this week, the first tax de-
bate of the current session, were
heard Wednesday at the Rules Com
mittee session. When Mr.. Knutson
and Republican Representatives
Grant of Indiana and Reed of New
York asked for clearance on the
Grant bill they encountered no pro-
tests against the measure itself. They
obtained "closed rule which lin
it's floor debate to three hours and
prevents amendments except through
the Ways and Means Committee.
Several Democratic members OF
the Ways and Means Committee,
however, sharply questioned the
three Republicans about the "per-
manency" of the excise taxes. They
also asked about the timetable" for
rolling back such levies and lower
ing income taxes, and whether cuts
in income taxes should be made "at
the top or the bottom"
You can be sure that on Wednes-
day we are going to remind the
Republicans they are letting the his
tory of 1924 repeat itself in this
whole field of taxation" Demo-
cratic leader declared yesterday. I'VE
are going to fight hard to prevent