Evening star. [volume] (Washington, D.C.) 1854-1972, 1947-07-20
3 Who Helped 10 Kill
Tax. Slash in Senate
Still See Hope in 'R
BY the Asseeiossd Press

Three Senators who helped kill
the $4,000, 00O, 900 income tax reduc-
ton said yesterday there still Is a
good chance that 1913 levies on 49,
100000 Federal taxpayers will be
reduced.
This opinion was offered In sep
arate interviews by Senators Aiken,
Republican, of Vermont: Tydings,
Democrat, of Maryland, and Hatch,
Democrat, of New Mexico.
But Senator George, Democrat,
of Georgia, doubted an income tax
reduction for 1913 is possible at this
time, and Chairman KnutSon of
the House Ways and Means Com
mittee said he has no plans for q
tax cut bill next year.
| Senator Tydings, who first voted
for the income tax cutting bill and
then switched to support the presi-
dental veto, said there will be q
1913 tax reduction bill but it will be
for considerably less than the, a.
0OO, 0O0, 600"
Aiken Anticipates Cut.
Senator Aiken agreed. Both he
and Senator Tydings said they
believed that a tax revision measure
will win approval early in the next
Congress and it can be made retro
active to January / of next year.
That would give US tax reduce
ton on the same date as proposed
by the bill just beaten" Senator
Aiken said. Wen get rid of some
of those miserable nuisance taxes att
the same time. We should be. able
to help more people in new bill. "
Senator Hatch said that any new
tax reduction attempt will depend
on international developments, pay
ments on the national debt, Federal
spending and revenue.
nation rather than mere specula-
ton by that time" he said.
George Expresses Doubt.
Senator George, dean Of the Sem
ate tax experts and a supporter OF
the two futile Republican tax re-
duction efforts, said he doubted
that ANY straight income tax re-
duction measure is possible now"
II think we have thoroughly
killed that as far as 1948 is con-
cerned," Senator George, former
chairman of the Senate Finance
Committee said. 1T may be that
general tax revision bill will pass
next year. That may reduce some
rates but I think a general reduc-
ton is dead"
! Senator George was one Of 10
Democrats who voted with Al Re-
publicans in the vain effort to over
ride President Truman's second veto
of a general tax reduction measure.
Mr.. Knutson, author Of the ILL
fated $4,000, 000, 900 tax cut bill, told
reporter he has mo plans to press
another bill in 1913. feel the issue
should 60 to the country. But the
decision Is up to the party leader
ship"
Knutson Is Critical.
Mr.. Knutson promised rough
treatment for any tax bill Mr.. Tru-
man may send up next year, say
ing:
His recommendations probably
would be purely political. He prob
ably will want to take 10000, 900
people off the tax rolls. This would
put too large burden on the other
29, 600, 900 taxpayers.
House Republican Leader J, Hal
Heck joined with those still hoping
Ef<as fo~ iv,
I 1.-THE Republican Party should
give the people this relief" he told
reporters. eff Mr.. Truman con-
tinues to block us, then the deci-
sion must be made by the people"
| Meanwhile, threat developed
that, instead of tax reduction. there
might be a $1,000, 600, 900 tax in
crease in 1913.
This came about as House Senate
conferees deadlocked on legislation
intended to freeze the social secur-
ity tax for two years at l per cent
against employees pay and employers
payrolls.
Conference Deadlocked.
Without the freeze the tax, used
to pay insurance to the aged, Will
Jump automatically January to Us
per cent against employer and en-
ploye. The l per cent levy now
collects about 81 SOC, 000, 900 annually.
Representative Reed, Republican,
Of New York, chairman Of the Con-
ference Committee, told reporters:
THE conference Is deadlocked,
and unless the Senate yields the tax
Is going to rs per cent on January
l. While meaning no disregard for
the Senate, feel that body acted
with undue haste without full con-
sideration Of the legislation"
The conflict arose when the Sem
ate passed a simple two-year freeze
of the tax, after the House had
voted a similar freeze but with a
provision that the levy would in
crease in 1850 to is per cent and