Evening star., 1948-01-06
Conqress
Continued From First Page.

centage reduction for everybody.
3. The administration abandoned
it's attempt to have Congress specify
a possible $4,000 100000 outlay for
European recovery over the next
four years, but ran into new Repub-
lican demands for further altera-
tions in the hotly debated Marshall
program.
4. Top COP leaders in both Sem
ate and House fired a verbal broad
side at the administration and
blamed it for the present high cost
of living.
Knutson Called From Lunch.
About the only excitement in the
opening day formalities was pro-
vided by Mr.. Knutson, but it had
nothing to do with the taX-cutting
bill he intends to introduce
He was scheduled to introduce a
routine resolution notifying the Sem
ate that the House was ready for
business. But when Speaker Mar
tin called his name three times, he
failed to answer Finally, a clerk
found him eating his lunch IN a
cloakroom. Mr.. Knutson hurried
into the chamber and introduced
the bill
In the Senate, Senator Wherry,
Republican, of Nebraska. pinch-hit
Majority Leader White, who entered
the Naval Hospital at Bethesda last
Sunday for physical checkup. Mi
nority Leader Barkley was at his
desk, but among the Democratic alb
sentees was Senator McGrath of
Rhode Island, the new Democratic
National Chairman. Senator Nc
Grath is in California.
Sessions Opened With Prayer.
The Rev Peter Marshall, chap
lain OF the Senate offered this
prayer when the Senate convened:
Our Father, who art. Lord of
heaven and of all the earth, Thou
knowest the difficulties these men
have to face and the grave decisions
they must make. Have mercy on
them, for Jesus sake, amen"
The Rev. James Shera Montgom-
cry led the House in the The
Lords Prayer" to begin the session
there.
Since Congress adjourned De-
cember 10, Representative Patrick
Drewry. Virginia Democrat, has
died.
Mr.. DreWry's death and the resig-
nation of Earle Clements, Democrat,
elected Governor of Kentucky, left
the political lineup in the House at
245 Republicans, 1876 Democrats, l
American-Laborite and vacancies
The other vacancy was caused by
the resignation of Representative
Evan Howell, Illinois Republican.
The Senate started off with no
vacancies and lineup of 81 Repub-
licans and As Democrats.
What the President will say in
tomorroW's state-of the Union mes
sage, or the exact amount he will
ask in his budget message next
Monday, remained official secrets
But there were forecasts that Mr..
Truman will mince no words.
One Capitol Hill official in close
touch with the White House pre-
dicted that the President will take
firm stand against trimming the
amount of tax money now flowing
into the Treasury.
From one of Mr.. Truman's own
advisers it was learned that the
Chief Executive has been consider
ing setting forth an administration
tax relief plan to counter the Knut-
son bill.
This, il 1t goes into the message
at ALL the adviser told a reporter,
will call for higher levies on cor
poration profits and correspond
ing reduction in personal income
taxes, with the biggest cuts in the
lowest brackets.
I'm other words, it is proposed to
take a little of the tax burden off
at the bottom and add little more
at the top" the White House con-
sultant said
Higher Exemptions Proposed.
AlC 4Al4uOooil IlN dsoulC WOulu III -
crease personal exemptions from
$500 to 5000, apply the income
splitting community property prin-
ciple to all States and reduce tax
rates by from 80 per cent in the
lower brackets to 10 per cent at the
top. 1t would not change present
corporation tax payments.
Taking note of some talk among
Democrats of offering their own
smaller tax reduction bill, Mr.
Knutson commented:
Il assume they want to give al
the relief to the lower brackets
where the votes are. They don't
want to give anything to the men
who create the jobs
The only way we can get Mr.
Truman to reduce expenditures he
added. lis to reduce his income, and
that can be done by reducing taxes
In his insistence that Congress
cut taxes Immediately regardless OF
the Presidents views, Mr.. Knutson