Evening star., 1947-11-04
Study for Knutson
Seen Helping Fight
For Quick Cut
By J. A. O'Leory

tax rates with due regard Tor
the cost of living of those in the
lower income groups" was rec
commended to the House Ways
and Means Committee today by
10-man Citizens Advisory
Committee.
The advisory group, headed by
former Assistant Secretary of the
Treasury Roswell Magill, was named
last summer to study long-range
rewriting of the entire revenue
code, as distinguished from the i'm
mediate cut in income levies which
President Truman twice vetoed be-
fore adjournment.
The report filed by Mr.. Magill TO-
day. however, is likely to give a
boost to the announced intention of
Ways and Means Chairman Knut-
son to make a new fight in the spe-
cial session for an immediate slash
In individual income taxes.
WoIl Files Minority Report.
The bulk of the Magill report,
which proposes 46 changes in the
tax laws, will not be made public
until tomorrow, but Mr.. Magill read
to the committe this morning this
one paragraph:
1--WE recommend reduction in
individual tax rates for all, with due
regard for the cost of living of those
in the lower income groups and for
the needs of the balance OF economy.
The equitable adjustment of tax
rates and exemptions is a No. l
Federal tax problem today
Matthew Woll, AFL official and
labor member of the 10-member
study group, filed a minority report
disagreeing with the majority.
An associate of Mr.. Woll said his
report contends that the majority
recommendations would:
/. Severely reduce Federal reve-
nues.
2. Disregard revenue needs for
the European aid, and
8. Shift the tax load from those
best able to those least able to pay.
0lDeS at WdH SHcEL oUySs
There were signs that some con-
troversy will develop in the Ways
and Means Committee over the
changes proposed by the citizens
group. Representative Dingell, DEM
ocrat, of Michigan, who criticized
the makeup of the committee sew
eral months ago. added this COM
ment today:
THE Wall Street boys have
brought out this string of recon-
mendations on behalf Of the people.
Can you imagine that?"
Serving with Mr.. Magill and Mr..
Woll on the advisory group are:
Gov. Frank Carlson of Kansas,
John L. Connolly, st. Paul lawyer,
]. Cheever Cowdin, Universal Pic
lures Co., New York; C. S. Duncan,
Association of American Railroads,
Washington; John w. Hanes, New
York LAWYER; E. H. Lane, ST., the
Lane Co., Inc, Alta Vista, Va;
Wright Matthews. Dallas lawyer,
and w. S. Moscrip, president of the
Twin Cities Milk Producers Asso-
ciation, Lake Elmo, MINI.
After thanking the citizens group
for it's work, Mr.. Knutson announced
that the Ways and Means Commit
tee will try to complete and put
through the House by March Is the
comprehensive, long-range overhaul
ing of the entire tax structure.
ncrInnR6
Mr.. Knutson had made it clear be-
fore today that, without waiting for
long-range revision, he will start an
other income tax reduction bill going
in the special session November IT
If Republican leaders agree.
The bill, which President Truman
vetoed twice at the last session,
proposed fiat percentage cuts in in
dividual income taxes ranging from
80 per cent in the lower brackets
to 10 per cent at the top. Mr.. Knut-
son has not yet indicated the exact
form the bill will take when he re-
introduces it later this, month.
Since Congress adjourned, senti-
ment has been growing Tor Federal
adoption of the community prop
erty principle by allowing married
couples to split their incomes for
tax purposes, thereby obtaining a
lower rate. This advantage already
is enjoyed in more than dozen
States, which have adopted COM
munity property laws.
After receiving the Magill report,
the Ways and Means Committee
resumed public hearings today on
long-range tax revision by calling
witnesses on both sides of the con-
troversial question of whether farm