Evening star., 1948-04-02
Senate Also Due
To Act Today o.
..4.8-BiHIIion ii Slash
President 5 Message.
Worms Bill Imperils
Nations S Finances
fTert Of Veto Message on Page A-sJ
BY the Asseeio'ed Pres,


The House today passed the
s4,S0o000,000 tax cut bill over
President Truman's veto.
The vote was 311 to SO. This was
Is more than the two-thirds needed
to overrun veto,
Voting to override were 229 Re-
publicans and 81 Democrats, two
Republicans and the two American
Labor Party members.
Republicans voting to sustain the
veto were Representatives Carl An
dersen of Minnesota and Morton Of
Kentucky.
Cut Now Up to Senate.
The House action put it up to the
Senate whether taxpayers are to get
the cut in spite of Mr.. Truman's
objection that 1t would undermine
the soundness Of our Government
finances at time when world peace
depends upon the strength of the
United States
Leaders said the Senate would
vote to override the veto and make
the cut law before the day is done.
Such leading Democrats as Sena-
tors Lucas of Illinois and George Of
Georgia said they would vote to
override.
Effective May !, the measure cuts
taxes on 1948 income for all the
100000 income taxpayers and
drops 100000 with smaller incomes
from the taxpaying rolls. Slashes
range from 1875 per cent in the low
est bracket to 5 per cent In the
highest.
Bill Increases Exemption.
The bill reduces all tax withhold
ings from pay envelopes and salary
checks. 1t also:
l. Increases the present $500 per-
sonal exemption to $500
2, Applies the community prop
erty" principle to all States, allow
ing husbands and wives to divide
the family income equally for tax
reporting purposes-thus holding
the tax rates at lower bracket levels.
A dozen States now have this prin-
ciple by local law.
3. Provides percentage cuts of 1873
per cent on the first $4,000 of taxable
income (after deductions and ex-
emptions), IA per cent on that part
Of the income above $4,000 and up
to Sl36, TOO and 5 per cent on any
income above $136. 700.
4. Gives an additional $500 ex-
emption to persons IS years or older
bringing their total exemption to
$1,000. Exemption for blind per-
sons also are increased.
Action Expedite in House.
The House acted with the hour
after 1t got vigorously worded
veto message from Mr.. Truman.
The President told the legislators
this was no time to cut taxes. He
also said the bill sent him was not
fair-it gave too much of the cut
to those with larger incomes.
On the vote many influential
Democrats lined up with the Re-
publicans to brush aside his argu.
ments.
Majority Leader Halleck got out
a statement noting that Mr.. Tru-
man vetoed two cutting bill,
last year.
This" he said. sis just an extern
sion of his stubborn opposition to
much-needed tax relief and equali-
zation."
Speaker Martin said Congress can
make the tax cut and still meet the
Governments spending needs for a
stronger national defense.
Rayburn Supports Veto.
There were similar comments from
other Republicans.
House Minority Leader Rayburn
issued statement supporting the
veto. He said he can see no way to
reduce taxes by $4,000, 600 900 "and
at the same time do the honest.
straightforward thing and make our
Nation secure from attack and stop
the aggression of desperadoes in the
world
Mr.. Truman sent the legislators q
2,000-word veto message.
1T is bad policy" he said, ito
reduce taxes in manner which
would encourage imitation and bring
greater hardship, not relief, to our
people.
1T is bad policy to endanger the
soundness Of our national finances
(See TAXES, Page A-6.)