Evening star., 1947-06-12
The Political Mill
CupitoI Believes Trumun
Will Veto Tax Cut Bill
Such Action Would Deny Relief 10
People Over 2-Year Period
D.. HanJl T:~~nJa

TeOpl9 OVcI &. i cur i u io&As
By Gould Lincoln
Despite the efforts Of the Republican Con-
gress 1t looks now as though there would be
no relief from the burdensome Federal income
taxes Democratic President Truman s set,
say important Democrats on Capitol Hill, to
veto the tax bill He must act, either for or
against tho tax reduction BILL BY next Tues
day or 1t will become law. even though 1t does
not have his approval.
What happens II the President vstoes the
tax bill and his veto Is sustained by failure
Of the House and Senate, or either one, TO
pass the measure over his veto by two thirds
vote?
First, there viii be no chance Of tax reduc-
ton until the latter part Of 1948, unless the
President should do right-about-face In
January Of next year and indicate he would
stand for the Republican tax reduction pro-
posa1. For there is one thing ccrtain-the kind
Of tax bill passed by the present Congress will
be Republican variety II Mr.. Truman per-
sists in his opposition to the Republican tax
reduction proposal, he will have to veto IL
again next year df he vetoes 1t now. for the
Congress will be ready to pass q bill similar
TO that now before the President, when 1t
comes into session IN January. What does this
mean? It means that Mr. Truman will have
denied, by his own hand, the American people
any relief from their heavy taxes, over a two
year period.
VIII Kill Economy Drive.
Second it is widely said among the Demo-
Gratis who support the Truman attitude against
the Republican tax bill--and against any tax
reduction now-that the American people are
not interested in tax reduction: that what
they really want is to apply any surplus rev
enue lover expenditures to reduction OF the
national debt.
What is likely to happen II the President
kills the tax reduction bill Is that the same
stroke will kill in great degree the very suc-
cessful drive the Republicans in Congress have
so far made to bring about economy IN Gov
ernment expenditures. The promise OF tax
relief for their people has kept many Re-
publican member Of the House and Senate
In line when proposals to slash appropriations
for flood control. reclamation, irrigation, agrt-
culture, ETC., have been before them. Few or
the annual appropriation bills have finally be-
come law. .-,-.
Take away this tax reduction incentive, and
you may find many individual members OF
Congress voting again for higher appropria-
tions. This would mean less money to apply
to the national debt If this proves to be the
case then the killing of the tax bill by the
President would mean a long continuation OF
the heavy present-day taxes and no more
debt reduction than had the tax bill become
law. It's been tough job to keep the members
of the House and Of the Senate IN line for
many of the appropriation cuts-as the Re-
publican leadership can testify. 1t will be
a much tougher one, If there Is 10 be no tax
reduction.
DemocratS view.
Tr,a tc hays aho,Itnd fronn knA hoIIgA
tops that the Republican tax reduction bill Is
for the benefit of the rich not the men and
women in the lower income tax brackets.
That Is not true-since the tax reductions
range from los per cent to 80 per cent, with
the 80 per cent reductions applying to the
lowest incomes. But even II Mr.. Truman next
year recommends different kind OF tax bill
to 'Congress-he recommended none this year
it is quite clear that the Republicans will again
pass the kind Of tax bill in which they believe
and he will have to take 1t or leave it.
tax reduction-in personal income taxes
is in the last analysis q wage boost for all
workers. The income tax now is taken out
of their pay envelopes-under the Withholding
tax plan enacted into law by Democratic
Congress A tax reduction means that
worker will have more money to take home.
This Is what the Democrats are planning TO
deny GA6 WOIkeTS-OH SIOuIiu Ilo
money should be spent for debt reduction or
for additional Government projects. Mr.. THU
man has urged long list of them.
There is a suspicion which has grown with
the passing days that 1t is merely q question
of partisan politics which is responsible for
the Democratic opposition to tax reductions
at this time. In other words, the Truman
administration does not want to see the Re-
pubicans make good on their promise to re-
duce income taxes, promise which was made
during the 1916 congressional campaign and
reiterated after the Republicans won ma
jority In both the House and Senate. Tbs
people are today paying wartime taxes "a
slight reduction was made in the act OF 1945)
although the war has been over two years.
It has been admitted finally by the admin
istration that the receipts Of the Government
from taxation and other sources for the hscal
year ending June 80 will exceed Government
expenditures for that period. Indeed, there
will be a sizable surplus. With large cut in
Government expenses for next year In sight,
a reduction in the tax burden Is trlsttnable