Evening star., 1947-03-13
ITaxCutHearinqs
|0pen Stormi|y;
Snyder Is Blunt
Opposes SIoshes Now
As Minority Charges
6. O. P. Steam Roller
By Robert K. WoIsh

House hearings on income tax
reduction legislation got off to a
stormy beginning today as Sec
retary of the Treasury Snyder
bluntly told the Ways and
Means Committee that the Tru-
man administration opposes
such cuts this year and Is against
a 20 per cent "across-the- board"
slash at any time.
Even before Secretary Snyder took
the stand as the first witness at
two days of open hearings, Demo-
cratic members Of the committee
charged the Republican majority
with "steam-roller and star chamber
tactics"
Chairman Knutson, whose 20 per
cent tax reduction bill is the subject
Of the committee hearings, banged
his gavel angrily and directed Sec
retary Snyder to go ahead with his
testimony.
Hearing Limit Hit.
Democratic members shouted, how.
ever, that Mr.. Knutson and other
Republican committee members had
decided to limit the hearings to
today and tomorrow without con-
sulting the minority. Representative
Dingel, Democrat, of Michigan
asserted that Chairman Knutson
and his Republican colleagues had
no intention of reading briefs filed
by various organizations and per-
sons against the Knutson bill.
Chairman Knutson commented
that "if we don't get tax reduction
this year, we'll never get it,"
Referring indirectly to President
Truman's speech yesterday, Mr..
Knutson remarked that there were
"anticipations that we are going to
step in and shoulder the burdens of
the world" He declared that such
"a policy, on worldwide scale,
would make tax reduction "impos-
sible in this generation or any gen.
Grafton" He added, however, that
the Presidents speech to Congress
did not indicate how extensive such
a foreign policy might be.
Snyder Wants Debt Cut.
Secretary Snyder told the COM
mittee that present tax rates on In
dividual income should be MAIN
tanned and that any Federal budget
surplus this year should be applied
to debt reduction. He added that II
any income tax cuts were to be made
they shuold follow pattern to
benefit low income groups.
Mr.. Snyder declared that the
Knutson bill for a 20 per cent
"across-the-board" cut in taxes on
incomes up to $303, 900 and 10 per
cent on incomes above that would
give principle relief to higher in
come groups.
He predicted that "basic tax re.
visions, involving substantial re-
ductions of present taxes, will be
possible at a later time"
In addition to his prepared state
ment, Secretary Snyder replied in
detail to seven questions contained
in a letter to him from Chairman
Knutson March 8.
Sees Surplus for 1947.
He said he believed that, instead
of a $4,000, 100000 deficit, as esti-
mated in the Presidents budget
message earlier this year, the Gov
ernment will end the 1947 fiscal
year with surplus.
''The outlook. he explained, "is
that receipts will, be higher than
previously estimated and that we
shall succeed in our program of re-
ducing expenditures to an even
greater extent than we had esti-
mated The main reason for the
higher than estimated receipts is
that national income is running at
record levels. Income payments
reached new all-time highs in both
December and January. 1t will be
possible to obtain much clearer
picture of the improved budgetary
situation when the March income
tax receipts are in
In reply to another question con-
corning the Knutson bills proposed
additional $500 exemption for per-
sons over 65 years old, Secretary
Snyder said
II am opposed to any exclusion Of
special groups from the individual
income tax. I do not believe that
the income tax offers an appropriate
means of giving relief to special
groups"
Secretary Snyder estimated that
proposal would give tax relief to
approximately 100000 persons over
65, and that 100000 of these would
/ (See TAXES, Page A-4)