Evening star., 1947-06-27

January /, 1s48, puts one condition
on his proposal. 1t is that certain
sum be set aside for debt reduction
and that the action be taken after
the budget of appropriations Is fixed
by Congress.
In the House of Representatives,
a two thirds vote is certain for a
tax bill that would go into effect
January next. This Is because
some of the Democrats who voted
to sustain the recent veto say now
they would vote differently if the
measure were not to take effect
until next January.
Meaning In Revenues.
This means that the reduction In
Government revenues would affect
only the second half of the 1947-
1948 fiscal year, which ends July l,
1a48. Thus the total amount in
volved would be cut in half,
But the Democrats are beginning
to line up for the proposal because,
to a certain extent, this was the
party's policy in the Senate. A bill
sponsored by Senator Lucas OF Hi
nois was brought forth to permit
tax reduction beginning January l,
1s4s. The formula proposed is dit-
ferent from that of the Republican
sponsored measure but the principle
tax reduction for the calendar year
I948-is the same.
To pass q tax bill this summer
which would notify all taxpayers
what their rates of taxation would
be on January / next would be to
enable people generally to make
their plans for expenditures for next
year on an orderly basis. The/url-
certainty as to tax revision has up
set many calculations already. In
fact, most people have been led to
believe that there will be a tax re-
duction in 1948 because 1t is a po-
litical campaign year. Actually, to
wait until the next session of Con-
eress Is to risk the loss Of such a
bill altogether.
Revisions Long Overdue.
This Congress is assembled In
January. It rarely gets to legisla-
ton OF this kind for several weeks.
Besides, there Is an effort being
made to write q bill revising the ad-
ministrative interpretations OF our
existing tax laws. Something of this
kind has been long overdue. Much
money would be saved by the Treas
ury and by taxpayers if the rules
and regulations concerning deduc-
tions, for instance, were revised.
The Republican leaders have been
planning to wrap up the bill on
rate changes with the administra-
tive reviSions. This could mean pas
sage of a bill along about May of
1948. Such delay would make it i'm
practical for the measure to become
retroactive to January l, 1948, be-
cause it would present an unsolva-
BILE problem of administration and
would generally confuse taxpayers.
The pressure then would be to make
the bill effective in January, 1949,
but here again the opportunities for
a presidential veto would arise and
the political parties would be split
wide open on the issues.
To pass a tax-reduction bill now
gives an opportunity to keep the
whole thing out of the presidential
campaign unless the administrative
revision is vetoed and Congress fails
to override.
There is considerable sentiment
among the Democrats for a revival
of the tax bill with the proyiso that
it take effect next January. Re
publicans in the House favor it,
too, but Senate Republicans have
been hesitant to warm up to the idea.
Unless the bill is passed at this
session, it means tax reduction will
be delayed certainly until 1949 and
possibly later. Since it is expected
that the Treasury will show con-
siderable surplus this July and a
bigger one a year hence, it will be
difficult for members of Congress
from either party to explain why
tax-reduction legislation has not
been enacted.
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