Evening star., 1948-03-20
The Political Min
Income Tux Law Seen
As Far From Sucrosunct
Revenues Large Enough to Permit
Reduction, Writer Points Out
BY Gould LincnIn

BY Gould Lincoln
What's sacrosanct about a tax lawp II rave
nues are high enough-and they are-,,nder
the present income tax laws to permit a redi,,c-
ton In the taxes levied upon the American
people, why shouldn't they be reduced?
1t has been urged by President Truman and
the administration Democrats there should be
no reduction in income taxes because of the
world situation, or because in another wear
or two revenues may fall OF. That kind of
reasoning could keep the American people
under their present tremendous tax burden
forever. II taxes are reduced now, and it
becomes necessary to increase them later that
can be done. ....
Ingrained in the Roosevelt Truman adminis-
trations has been one major policy-tax and
spend. Mr.. Truman, like bulldog, is holding
to this policy. At present he is proposing to
put tremendous sum into European re-
covery. There is nothing wrong in that. It's
measure OF protection against another world
war. He Is proposing to put other billions
into building up our armed forces. That is
all to the good. But If there was no Europe
to save and no need for greater armed forces,
1t Is safe bet Mr.. Truman and his followers
would be asking for more billions Of dollars
to carry out his cradle the grave social
security plans.
COP Pledged Cuts.
There Is another reason why Mr. Truman
does not want tax-reduction bill passed now
by the Republican Congress-politics The
Republicans, when they campaigned for the
election of a Republican Congress in 1946,
pledged themselves to reduce taxes and Gov
ernment expenditures Ever since the Republic
t0ok loft 10
Mr.. Truman has resisted both tax reduction
and reduction of Government expenditures
That is on all fours with the tax and spend
policy which enabled the late President Roose-
welt to garner millions of votes Further, the
Republicans in the coming campaign would
get boost out of having reduced taxes
So Mr.. Truman, it has been announced by his
leaders on Capitol Hill, will veto the Republican
tax bill when it comes to him-just as he vetoed
the two tax bills which the Republicans sent
to him in the first session of this Congress.
This time, however, the prospects are Congress
will override the veto and the tax reduction
bill will become law
1t may be predicted with certainty that, in
his veto message the President will cite the
world situation and he~possibility of war with
Russia as one Of the main reasons for oppos-
ing tax reduction at this time. He may even
send to Congress new estimates of expenditures
for the armed forces. adding new billions of
dollars to the $l1 100000 900 already asked. If
he plans to do so, he will have to act quickly.
For the Republicans are bent on speeding their
tax measure to Mr. Truman.
Expect House to Agree.
Senate Republicans confidently expect the
House to agree to the Senate bill, which gives
81, 800 000O 900 tax relief instead Of the $780,
00O 900 provided in the House bill. They will
agree in the House to this cut for two reasons.
First, because of the need of more money for
the armed forces and second because the
Senate figure can command enough Democratic
votes in the Senate and House to make sure the
passage of the bill over Truman veto.
John w. Hanes, Undersecretary Of the
Treasury in the Roosevelt administration and
well qualified to Judge, has predicted that the
surplus for the two fiscal years 1948 and 1949
will be almost $4,000 100000. This is sufficient
to permit carrying out plans for European re-
covery, building up the armed forces national
debt reduction and tax reduction.
Mr.. Truman has so far been able to deny tax
relief to the millions of Americans paying in
come taxes for the better part of two years. His
own party members, who come up for re-elec-
tion this year, some of them, are apparently
not going to back him up again.
Tax reduction is as good as wage increase
and you don't have to stop work to get it.