Evening star. [volume] (Washington, D.C.) 1854-1972, 1948-03-12
Senate PASSAGE
OF Tax Cut SET
For Next Week
Committees Figure
Is Nearly Two Billion
Below House Bills
fTar Table ON Page A-15.)
By the Assoeioted Press

Senate Republican leaders to-
day tabled their $4,7OO,0 00, 900
tax cut bill for action next week.
Chairman Taft announced that
goal was set at a meeting of the
Senate Republican Policy Commit
tee. Debate is expected to begin
Tuesday or Wednesday. but the aim
is to get final action by the weeks
end.
The Senate Finance COMMITTEES
approved the new bill, 10 to l, last
night.
Senator Connally, Democrat of
Texas, cast the lone opposition vote.
The Senate committee whitfield
$1,000, 100000 from the $500, 900, 900
tax bill passed overwhelmingly by
the House February 2.
The purpose of the Senate strategy
is to try to win enough Democrats
votes to pass a bill over the presi-
dental veto the Republicans expect.
That would take a two-thirds ma
Jorlty IN both the Senate and House.
Other Provisions Intact.
Except for one major change
Which trimmed the amount of the
cut, the Senate measure is practi.
cally the same as the House bill,
The Senate bill provides for per-
centage tax cuts ranging from 1913
per cent for those with net incomes
of up to $4,000; IA per cent on in
comes OF from $4,000 to $136, TIC, and
3 per cent on incomes over $136,719,
The range of House bill reductions
Is 80 per cent on incomes up to
81 1000; 80 to 20 per cent between
$1,000 and $l,395; 20 per cent be-
tween $l,395 to $4,000; and-oyer
81 ,0O0-20 per cent on the first
81 900 and 10 per cent on the rest.
In all cases these cuts are applied
to income after deductions and
exemptions.
Senate Finance Committee Chair
man Millikin said 70.5 per cent
OF the tax relief provided by the
senate bill would 60 to persons
making $1,000 or less after deduc-
ton, but before personal exemptions.
Retroactive to January l.
The House bill would give 71.s1
per cent of the s6,50o,o00, 900 cut to
those earning less than $4,000.
Under both the Senate and House
bills:
l. The cut would be effective as
OF last January !. -
2. The personal exemption for
each taxpayer and each dependent
would be increased $10O-from $500
to $500.
3. Husbands and wives in all
States could split their income for
tax purposes. This now can be done
only IN the II so-called community
property States. This income split
ting plan would benefit to any ex-
tent only those who make more
than 5000.
4. Increase the maximum stand
ard deduction for contributions,
medical and certain other expenses
to 81 900. 1t is $500 now. On income
OF less than $4,000 the top deduc-
ton would continue to be 10 per cent.
Higher Exemption From Blind.
5. Raise the exemption for blind
persons to $500 from $780,
s. Allow persons IS or older an
extra $500 exemption.
7. Apply the income splitting
principle to estate and gift taxes.
On the final 10-to-1 vote, three
Democrats joined the seven Finance
Committee Republicans in balloting
for $4,7o0, 100000 cut.
The Democrats were Senators
George Of Georgia, ranking minority
member; Byrd of Virginia and
johnson of Colorado.
On the Republican side, in addi-
ton to Senator Millikin were Sena-
tors Taft of Ohio, Butler of Ne
braska, Brewster of Maine, Bush
field of South Dakota, Hawkes. of
New Jersey and Martin of Penn
sylvania.
Senator Barley. Democrat, of
Kentucky and Lucas, Democrat, of
Illinois we're not present for the
final vote.
Earlier. Senator Barley had Of
fered a substitute proposal to hold
(Coe TAvEC Dono q