Evening star., 1948-01-08
6. 0.P. Declares War
On Truman Tax Plan,
Prepares 10 Junk Il

The election year battle over
taxes and imitation was under
way on Capitol Hill today with
the Republican-controlled Con-
gress determined to junk the
program laid down yesterday by
President Truman in his state
of-the-Union message and to
write their own revenue measure.
Chairman Knutson of the House
Ways and Means Committee de-
clared that President Truman's pro-
posal for a $40 cut for every income
taxpayer and dependent, which
would be Offset by new corporate
levies, ''is as dead as a mackerel." :"
He simultaneously announced plans
to push the COP $500 900 900 tax
slashing bill to quick approval in
the House.
1T Is just political gesture. 1t
will get no consideration at ALL"
said Mr.. Knutson Of the Truman
plan, which would free perhaps TO-
100000 low-income persons from
further taxation.
Martin Skeptical of Plan.
House Speaker Martin COM
mented:
Il don't expect the Presidents
proposal to get far and I don't
think the President expected it
would when he made it. We IRE
publicans) will have tax bill of
our own that will give more benefit
to the little people and will be
one that will stimulate instead of
hurting business. We are not going
to increase anybody's taxes for the
time has come to get rid Of war
time taxes"
However, House Minority Lead
er Rayburn quickly backed up the
White House plan, and in re-
tort to MIR. Knutson, declared, "I
don't concede anything"
The Republicans were equally
hostile to The Presidents renewed
demand for enactment of his 10,
point anti-inflation program, in
cluding standby authority for wage
price control and rationng of scarce
commodities.
Rent Control Extension Likely.
Rent control extension seemed
likely to pass in modified form. and
compromises also were in sight on
such other administration proposals
as foreign aid, broadened social Sc
curity coverage. higher minimum
wages and civil rights guarantees.
Overshadowing everything. how
ever, was the subject of taxes, with
imitation not far behind, and lead
ers of both major parties look for
these two issues to lay the founda-
ton for the forthcoming presiden-
tial and congressional election
battle.
Little Doubt of Veto.
When Representative Knutson
who has spearheaded the Repub-
lican tax drive throughout the
Eightieth Congress, introduced his
bill in the last hours of the recent
special session, he labeled it veto
proof" But the Presidents message
left little doubt that it will be re-
jected If sent to the White House
in its present form.
Mr.. Truman last year twice killed
Republican-backed $4,000, 900 900
tax-cutting measure, saying it was
the wrong kind of tax reduction at
the wrong time He is expected to
amplify his views in the budget
message scheduled for delivery to
Congress Monday.
The big question now is whether,
In an election year. enough Demo-
Gratis will join in support of the new
Republican abill to pass it over a
veto, or whether the Republicans
must compromise with Mr.. Truman.
Some Legislation Seems Sure.
There seems to be general agree
ment that there will be some sort OF
tax-cutting legislation. Some Dem
ocrats told reporters privately that
they believe the Republicans will
win their battle.
Mr. Knutson called the Ways and
Means Committee to meet January
16 on his measure, with Secretary
of the Treasury Snyder and Internal
Revenue Commissioner Schoeneman
as the only witnesses.
Mr.. Snyder will have an oppor-
tunity then to elaborate on the Pres
ident's proposal.
Threat of Depression Cited.
In requesting standby authority
for price and wage control and ra-
tioning, Mr.. Truman said the cur
rent price spiral is undermining
the living standards of millions, -
and holds the threat of another de-
preston"
High prices" he said, must hot
be our only means of rationing.'
Republican reaction on this score
was reflected generally in the COM