Evening star., 1948-11-19
George and McGrath
Al Odds on Restoring
Excess Profits Tax
By J. A. Oleory

By J. A. Oleory -.
Two top-ranking Democratic,
Senators-George of Georgia
and McGrath of Rhode Island
were at odds today over the
wisdom of reviving an excess
profits tax.
Senator George, Who will have
strong voice in future tax policies
as chairman of the Senate Finance
Committee, told the Associated Press
in Georgia that return to that
form Of taxation would lead Ito de-
struction of business"
Senator McGrath told a press
conference at the Capitol late yes
terday, however, that as an indi-
vidual Senator, he believes there
should be "a reimposition" OF an ex-
cess profits tax in some form.
Awaits Budget Figures.
BY emphasizing that he was ex-
pressing his individual view, Sem
ator McGrath made it clear he was
not speaking as chairman of the
Democratic National Committee. He
explained he could not be specific
about possible tax legislation until
the Budget Bureau completes work
on the Governments income and
outgo figures for next year.
The divergence of views between
these two Senators forecasts sharp
battle on the excess profits tax is
sue, however, if President Truman
again recommends it. The Presi-
dent urged reimposition of the tax
earlier this year as one means OF
curbing imitation. He also called
for it during the presidential cam
paign.
The wartime excess profits levy
was repealed on January l, 1916,
on Mr.. Truman's recommendation
while the Democrats had control
of Congress, and the administra-
ton has not proposed that it should
be put back at wartime levels.
Nevertheless. Senator George said
he sees mo sense" in restoring that
form of taxation, adding that if
more revenue is found necessary he
would favor raising the normal tax
rates on corporations.
Doughton to Be Heard From.
Another man who will have much
to say about any new tax bill is
Representative Doughton, Democrat,
of North Carolina, but he has not
yet committed himself. He is slated
to resume his post as chairman of
the House Ways and Means Com
mittee, where all tax bills must
originate. under the Constitution.
Just back from visit with Mr..
Truman at Key West. Senator
McGrath also told press confer
ence that:
AS an individual Senator he favors
change in Senate rules to prevent
filibusters, which have blocked civil
rights legislation.
He would like to see the Hatch
clean politics law amended to allow
national committees of all parties to
borrow money, as any business Or
ganization does. He emphasized he
does not favor changing the Hatch
rules which curb political activity
by Government employees.
He expects repeal of the Taft
Hartley Act and it's replacement by
a more moderate labor law. The
Rhode Island Senator believes there
should be some way to protect the
public interest in Nation wide
strikes, but does not think use of
the injunction is the proper method
He is not ready to suggest an alter
native.
Boilers to Be Protected.
He mace it clear he does not ex-
pect Democratic Senators who failed
to support the Truman-Barkley
ticket to be deprived of committee
assignments.
That question arose when some
one asked if the Democrats would
allocate committee assignments to
Senator Taylor of Idaho, who ran
for Vice President on the Wallace
Progressive ticket.
Senator McGrath revealed the
philosophy Democratic leaders may
take on this issue by asking the
neWsmen to remember that Senator
Taylor was elected to the Senate as
a Democrat. The party, he pointed
out. must be careful not to deprive
Democrats in any State of repre-
sentation they are entitled to in
Congress. He indicated the same
reasoning would apply in Southern
States which went for the Thur
mond Wright Dixiecrat ticket.
Not Afraid of Coalition.
At the same time, Senator Nc
Grsth left a definite impression
that party leaders will not shrink
from pushing the Truman program
for the sake of party harmony.
How are you going to keep the
Southern Democrats from joining
up with the Republicans?", asked
one reporter, referring to coalition
which has frequently occurred in
the past on economic issues.
BY just showing them the selec-
ton returns" Senator McGrath
tersely replied.
7 Nearly IS news and radio writer's
had gathered at the Capitol for
press conference with Leslie l..
Biffle, director of the Senate Demo-
cratic Policy Committee, who also
had just returned from Key West.
Modest Mr.. Biffle, always content
to work for the party's welfare
without pushing himself into the
limelight, summoned Senator Nc
Grath into his Office. After warmly
greeting the correspondents. Mr.
Biffle slipped into the BACKGROUND