Evening star., 1948-01-09
Truman Tax Strategy
Termed Poor Politics,
periIs Marshall Plan
Some Reduction Certain
With President Facing
Override Of Any Veto
Bv David Laurence

q 0e~S-S
dent Truman Is his own worst
enemy.
Having adopted a position on tax
reduction that was not only plaus-
ible but defensible for the year
1913 as well as 1947, the President
needlessly threw away his point and
weakened himself immeasurably.
Originally, Mr.. Truman held that.
with the uncertainties about ex-
penditures overseas and the need
for debt retirement, he felt that
tax reduction was inopportune. He
unwisely said last year that the bill
he vetoed was the wrong kind Of
tax reduction at the wrong time, +"
but even this did not erase his point
that taxes couldn't be reduced In
the face Of huge expenditures
abroad.
This week the President comes
out with q program Of his own.
Evidently this is the right time"
for tax reduction and he proposes
his own scheme. True enough, Mr..
Truman says corporations should
be taxed more to make up for tax
reductions to individuals. Never
theless he has committed himself
to the principle Of tax reduction
in 1948.
Debate Now on What Kind.
The debate, therefore, no longer
~ VnNnIId hA
tax reduction but merely as to what
kind.
This makes It possible for the
Republicans and Democrats to COM
pete with each other on rival plans.
In the end, q tax reduction bill will
be passed by overwhelming vote on
the assumption that 1t Is the bill
then before Congress or none at all.
Members Of both parties will await
a veto and then the vote to over
ride will be even larger. For then
the real choice will be between the
vetoed bill or no bill.
It Is dificult to understand Mr..
Truman's reasoning in offering =
tax credit Of $40 to all individuals,
irrespective Of their incomes, while
urging an increase in corporation
rates. For, by so doing. Mr.. Tru-
man alienates nearly all conserva-
tive votes, including many inde-
pendent votes that normally come
from conservative groups. At the
same time Mr.. Truman doesn't add
much to his strength with the
voters In the low-income groups be-
cause actually the Republican bill,
when completed, will give a good
many Of these voters better break
than the $40 plan gives them.
The danger is that when the Re-
publicans and Democrats begin
competing with each other to give
the voters bigger and better tax re-
ductions, some one will get the
bright idea that maybe the 81, Co.,
100000 Marshall plan might be di-
vided up into tax credits, too.
The President has to certain ex-
tent lost his leverage on the whole
situation and perhaps imperiled the
original Marshall plan recommends
ton. For the tendency now will be
TO cut 1t deeper and deeper in the
hope of outdoing the Presidents
$40 plan.
There Is no doubt that Mr.. Tru-
man felt he was compelled to offer
some kind of tax-reduction plan.
It is unfortunate that he picked a
demagogic scheme, for on its face
the plan is being ridiculed even by
Democrats, except, Of course, those
from the extreme left wing" who
are delighted with any proposal
that brings everybody down to one
level irrespective Of ability.
Lacks Good Advisers.
The President is really without
GOOD political advice. His message
was q composite Of many memoran-
da and suggestions, and 1t is re-
ported that the document was
pieced together by a couple Of the
Presidents assistants.
The idea Of appealing to the radi-
calls by giving them some Of the
same things Henry Wallace is ad-
vocating came undoubtedly from
those political advisers who think
the New Deal is very popular and
that elections can be won on that
basis It will be recalled that in
1910 and 1914 international issues
played a considerable part and that
the late President Roosevelt's do
mestic policies were diminishing in
political strength. Then when the
Republicans won landslide In No
vennber, 1896, the Democrats Of the
left wing" school insisted that the
issues on which they lost were tenn
porary and that the defeat was
merely reaction against rationing
and meat controls.
The assumption by the White
House now is that the country wants
rationing and controls and that the
New Deal can come back into power.
Never was a candidate for the presi-'
dency more mistaken. For in the
last several months, during which
Mr.. Truman's curve Of popularity
has risen in the Gallup polls, the
administration has not been radical.
In fact, the President has shown by
his appointments and his policies
that he was inclining to middle
of-the-road course.
Now with the Presidents swing to
the "left" it will be interesting to
see whether the Gallup polls remain
at the same point. Much will de-
pend on the extent to which there
Is discomfort among the voters in
1948. Already the Republicans con-
tend that Mr.. Truman has the
power to deal with imitation and
that his own administration forced
up the prices of grain. The tax
issue may play part, but opposition
to radicalism will play an even more
vital role In determining the out
come of the election. Mr.. Truman,
in choosing the radical side, has
taken long chance on what the
mood Of the country will be next
November.
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