Evening star., 1948-01-07

or less: married couples with 1,60o
or less; couples With one child;
$1.375: two children, 1910; three
children, $3,975, and four children,
/ "A, $50.
Mr.. Truman. said the total reduc-
tion In collections from individuals
would b s.. Ak, ,000, 100. He said corr
porations we're making "exraord-
inarily high" profits and could
afford to pay higher taxes to make
up that 80 the Governments tax
income would not 70 down.
Corporation Rate Would Rise.
The President gave no estimate
of how much OF an increase would
have to be made n corporation
taxes. Colin r. STAN. head Of q
special stan Congress has to study
tax matters, told reporters he figured
the corporation tax rate would have
to be increased from - per cent to
81 per cent.
Under the Truman proposal, the
tax relief would fall heaviest, per-
centagewise, upon low income per-
sons, with negligible percentage re-
ductions for persons with large In
comes. Mr.. Knutson would give re-
lief ranging from 100 per cent in the
lowest income bracket to 10 per cent
in the highest. =
I Government experts estimated
that about o5 per cent Of the re-
lief the President proposed would
60 to persons with incomes under
81, 900. Mr.. Knutson has said II
per cent Of the relief under his
bill would 60 to those with incomes
under $4,000.
Senator Martin, Republican, Of
Pennsylvania said: The message
looks to me like q political docu-
ment looking toward November,
1948."
Strong Message, Rayburn Says.
House Minority Leader Rayburn
called it a strong message that
challenges the craftsmanship Of
Congress"
1T demonstrates clearly" Mr..
Rayburn said, -that President Tru-
man places tt,- -'1are of the Ma
ton above all else"
Chairman Ce...l Reece of the
Republican National Committee:
"Mr. Truman's message to Con-
gress, 50 far as it referred to really
controversial domestic problems,
might we'll have been written by his
vice presidential predecessor, Henry
A. Wallace. He could have saved a
great many words by simply writing
q note stating:
"'Dear Henry: Come home. all is
forgiven and you can write your own
ticket (Wallace has announced his
third-party candidacy for the presi-
dency.)
This obvious attempt Of the PEN
dergast wing of the Democrat Party
to make peace with the Moscow
wing is additional proof that this
administration Is unwilling to at
tempt to solve American domestic
problems by American methods"
Taber Sses Production Hurt.
Chairman Taber OF the House
Appropriations Committee said the
presidential tax program would hurt
production and: TITS probably as re-
dictionary and inaationary q pro-
posal as could have been presented"
On the tax issue, Mr.. Knutson has
proposed these main changes:
l. Increase the present personal
exemption to 5000, thus removing
5000 900 low income persons from
the tax rolls and providing some
relief for all the remaining taxpay-
ers. This would reduce revenues by
about $4,000, ,00o, 900.
z. Apply the community property
principle to al States, permitting
married couples to split the, family
income equally for tax reporting
purposes. This principle now Is ape
plicable in = dozen States by local
law. General application would
cost the Treasury about. $780,
0o0, 900.
(Mr. Truman said nothing on
this community property issue,
much talked about lately.) =
). In addition to the 500 added
exemption and family split income
reductions, make 10 to 80 per cent
slashes In various tax brackets to
the tune Of about 32,600, ,000, 900. -,
Three Billion Increase Possible.
Senator Millikin said 1t is esti-
mated that corporations will pay
%, 500, 900 900 In taxes In le48 and
that Mr.. Truman proposes to raise
these to 81, 100 .000, 900.
The Colorado Senator said high
taxes discourage investment Of capi-
tai In business. Mr.. Truman's pro-