Evening star., 1947-03-12
House 6. 0. P. Speeds
Tax Slash Plan After
Cutting Treasury Bill
By J. A. O'Leuy

1lufhng treasury Bill
By }. A. o'Leuy
| House Republican leaders to.
day prepared for swift action or
/ their promised cut in persona
income taxes, after making 6
start yesterday in their economy
drive.
Chairman Knutson announced
that his. House Ways and Means
Committee will start two days OF
public hearings at 10 am. tomor-
row, with indications a tax bill will
reach the floor during the week OF
March "a.
Meanwhile, the Senate awaited a
chance to take final action on two
appropriation bills - one ending
OPA by June 80, and the other
Topping $500, 100000 off Treasury
estimates for next year.
The bill containing the OPA
death sentence is a SITS, ,645 ,668 de-
fieiency measure.
"SteamrolIer" Tactics Charged.
The other saving was made in the
S12 1888 ,o2S, ,971 regular supply bill for
the Treasury and Post Office De-
partments for the year starting
July /.
Mr.. Knutson's plan for two days
Of tax hearings brought charge of
"steamroller" tactics from Repre-
sentative Forand, Democrat, OF
Rhode Island.
Democrats generally have been
stressing debt retirement in prefer
ence to tax reduction, but the Re-
publicans contend it is possible to
cut Government spending enough to
cover both tax and debt relief.
Gore Opposes Treasury.
The $500 100000 figure the Repub.
licans marked up in their savings
column yesterday was taken from
the Treasury's $4,000, 100000 esti-
mate of tax refunds to be made next
year. ..
Representative Gore, Democrat, OF
Tennessee tried without success to
have the tax refund authorization
left indefinite. He argued that the
law requires refund of erroneous
tax collections, and that cutting the
estimate now would only require
another appropriation later.
Representative Dirksen, Repub-
hcan, of Illinois told the House he
had reason to believe the tax refund
estimate was set high deliberately
by the Budget Bureau SO that the
Democrats could announce a saving
next year when the elections are
approaching. He called the Budget
Bureau a political arm" of the
White House.
Gives Up on Interest Rate Cut.
When Mr.. Cores motion to change
the tax refund item failed, 1O2 to
81, he abandoned efforts he had
planned to cut the Government in
terest rate on deferred tax refunds
from 6 to 8 per cent. The Treasury
Post Office bill then passed the
House, 387 to 0.
The Treasury-Post Office bill now
goes to the Senate Appropriations
Committee for hearings, and posi-
BILE revision. The deficiency bill,
however, has passed both houses,
and requires only funds for OPA. >
Ofdcials of that agency claim the
reduced allowances will cripple the
enforcement of rent and sugar con-
trolls after April 30, even though
the funds will be available until
June 80. Republican leaders, now
ever, may in the meantime transfer
these two activities TO some other
Government agency. -, ..,,-
Briefs May Be Filed.
Mr.. Knntson announced that per-
lsons not heard during the two days
fof tax hearings may file briefs up
to pm. Friday. Although the
Knutson tax bill provides for 20
per cent cut on incomes up to
1902 900, and 10 per cent on higher
brackets, a variety of substitutes are
being drafted to give more tax re-
lief to low-income groups.
Representative Keating, Repub-
lican, Of New Jersey offered a bill
yesterday to reduce the surtax on all
income groups by 7 percentage
points. He said this would mean a
IS per cent reduction for persons
with less than $4,000 of net income
and 81 per cent cut for those be-
tween $4,000 and $4,000. The per-
centage of reduction would taper of
to per cent for those earning more
than $4,000.
Mr. Keating said the present per-
sonal exemption of $500 for a single
person and 81 900 for a married cou-
pie are not realistic, but he believes
his gradual reduction in the surtax
rates is a more practical approach
at this time than changing the ex-
emptions.