Milford chronicle., 1947-06-20
Tax Cut Veto Upheld; Issue
For Election In 194S Drawn
Continued from drst page)


philosophy repudiated by the peo-
pie last fall. 1t will be even more
emphatically repudiated in 1948.
The people have determined
against a New Deal fifth term"
The national chairman said 1.-The
people are entitled to relief from
the. back-breaking, war-peak taxes.
So close was the vote in the
tense, strained House that Repub-
lican Leader Halleck of Indiana,
demanded recapitulation. How
ever, the recount confirmed the
original tally.
A shout went up from the Demo-
cratic side when the final vote was
announced.
1t all sums up to this:
Some 48,000,000 income taxpay-
ers will go right ahead paying the
same federal taxes for the time
being.
The Republicans and Mr.. Tru-
mans clashing ideas on. whether
this is right or. wrong will go be-
fore the people in the next cleo
tion. ... :.
Even if Congress passes a tax
cut bill early in the new session
starting. in January, the result of
Democratic and Republican atti-
tudes on a 1947 cut would never
theless surely be carried over in
to the campaign.
Representative Knutson (R-
Mimi told. reporters the House
Ways and Means Committee, which
he heads, will continue studies OF
general overhauling of the tax
structure. He previously had said
this would mean further tax cuts
: in 1948, but now he is not so sure
} he told reporters.
The bill would have cut income
taxes by 80 per cent for those with
income of $1,000 or less, by 20 pei
cent for those with incomes up tt
, $137, 900, by Is per cent for those
= between $137 900 and 100000 ant
by 10.5 per cent for those above
i. 1902 ,000
[ These reductions, at the annua
t rate of $4,000,000,000, would have
s gone into effect July 1.
, In rejecting the bill on Monday
Mr.. Truman called it unsafe
y from the standpoint of governmen
= finances and said it offered 'th
= wrong kind of tax reduction, at tn
: wrong time" He added that
good bill would give a create
proportion of relief to the low in
S come group" ~.
n Since two-thirds of both the Sen
ate and House is required to over
4 ride the President, the House &C
y ton killed the tax bill. 1t wa
~ presented by Knutson as Hous
g Bill No. l when Republicans too
control of Congress in January.
10 Had the House overridden tn
~ President, it had been deemed Gel
L tain the Senate would have kille
J. the bill.
e, Former Speaker Rayburn of Te1
# as, the Democratic leader VIII
"a spear r-headed the battle for til
~ President, said when the vote we
y announced:
& I'm glad it was sustained. l We
4 opposed to this kind of tax PR
at vision at this time. What "
Iv should do is pay off some of oil
=, debts while there is high incon
and while we have adequate. ia
)r revenues"
III In thrusting the issue towal
1948, the Republicans accused M
Truman of wanting to put off t:
reduction until next year-for p
>: litical purposes.
y, Knutson said:
"This ends all efforts for t;
rs, relief this year. What we do ne
al year will depend on events.
in apprehensive that our foreign col
- mitments will turn out so huge
u to make tax reduction next we
ue inadvisable.
ch CIO President Philip MUIR
issued a statement commending t
President for the veto, describi
IL the Knutson measure as "this q
an the greedy proposition.
as, Halleck told reporters the vt
he was executive assumption of Il
,ro islative authority without par
- lel." r.
ISL He quoted Mr.. Truman as sayi
after the Republicans won