Evening star., 1948-02-03
2.Month Delay
Seen in Senate
Action on Taxes
House-Approved Bill
Expected to Be Held
Until Budget Is Fixed
BY the Assoeioted Press


The Senate put the Repub-
lican tax-cutting bill on ice to-
day. And it may stay there for
two months or more.
When it does come up for Sem
ate vote, it probably will call for
less than the Sc $500, 100000 cut over
whelmingly approved by the House
yesterday by a 297-to-120 count.
That is 10 votes more than the two
thirds majority needed to override
O veto.
Only" one Acknowledgements
ative H. Carl Andersen of Mime
sota-voted against it. Sixty-three
Democrats joined 234 Republicans in
voting for it.
Taft Doubts Power to Override.
But Senator Taft of Ohio, chair
man, of the Senate Republican Pol
icy Committee, told reporters he
doubts that the Senate will be able
to override veto unless the amount
of revenue loss is reduced.
Senator Taft did not say how
much of a reduction he thinks will
be necessary. But some leading
Democrats predicted that if the bill
is held down to around $4,000, ,000,-
900 any presidential objections will
be overturned.
In any event, the Senate is going
to wait until the Senate
Budget Committee takes a whack
at President Truman's proposal to
spend $39, ,700,000,000 during the
fiscal year starting July /.
To Await Reports on Budget.
Senate Republicans are aiming at
a cut of at least $4,000, 100000 in
the budget estimates, but soms
party members have said they may
not be able to meet that goal.
Chairman Millikin of the Sem
ate Finance Committee said his
group will not even open hearings
on the House-approved bill until the
Budget Committee reports. This is
due by February Is.
Action by the full Senate probably
will be delayed until after vote
on the Marshall Plan for European
recovery. This may put off final
tax showdown until April
Whenever the bill is passed, how
ever. and providing veto is over
ridden, the cuts will date back to
January /. Any overpayments in
the meantime would be refunded.
George Sees Means of Passage.
Senator George of Georgia, top
ranking Democrat on the Finance
Committee, voiced the view that If
the Republicans hold their tax cut
to about $4,000, 900, 900 there would
be enough votes to enact it into
law over a veto, if there is one" /
Representative Doughton, Demo-
crat, of North Carolina, senior DEM
ocrat on the tax-writing House Ways
and Means Committee, made SIM
liar prediction.
Mr.. Doughton, while supporting
reasonable" tax reduction, said a
$500 100000 cut might set the
Treasury back to keeping its books
with red ink.
AS 1t passed the House yesterday
the bill would grant tax reductions
ranging from 100 per cent to those
in the lowest income groups to 10
per cent in the upper brackets. 1t
would remove 100000 low income
persons from the tax rolls COM
pletely.
Would Permit Family Split.
Specifically, it would:
/. Raise personal exemptions by
800, from $500 to $500.
2. Allow husbands and wives in
all States to split the family income
for tax purposes, thus permitting |
lower tax rates.
8. Grant percentage cuts ranging
from 80 per cent in the low bracket
to 10 per cent in the upper bracket.
4. Give special exemptions to per-
sons IS and over and to the blind.
Before it passed that bill yester-
day the House beat down, 258 to
159, a Democratic substitute The
Democrats sought to cut individual
taxes by $4,000, 900 900 and to recov-
er all but $500, ,000, 900 of the revenue
loss by a new s3,20O,00O,0O0 excess
profits levy on corporations.
In presenting their substitute the
Democrats threw overheard Mr..
Truman's proposal for a s40-per-
person tax cut, but used his excess
nrofits 0lan