Milford chronicle., 1949-05-20
THE TAX OUTLOOK

THE TAX OUTLOOK
Congressional and Treasury tax experts
think the chances of some tax increase legis-
lation in 1949 are good enough to justify
painstaking spade-work on new levies. But
whether or not Congress will favor tax boosts
won't be known until later in May, when the
annual budget resolution is passed and the
lawmakers have better idea of future in
come and outgo. So far, Congress has turned
frowning face on all pleas for higher taxes.
The recent downturn in business, with its
adverse effect on employment, has tended to
strengthen this attitude. A few of the law
makers have said hopefully that it might
even be possible to put modest tax reductions
into effect. Senator George, the conservative
chairman of the powerful Senate Finance
Committee, is strongly opposed to digging
deeper into the taxpayers pockets. Repre-
sentative Doughton, chairman of the equally
powerful House Ways and Means Committee,
also takes dim view of higher taxes. But
both these key figures, along with a majority
Qf-+he members of House and Senate, are
convinced that balanced budget is neces-
sary. The hope is that Congress will trim
its sails to the wind-that it will write bud
get which can be met by the estimated reve-
nues from present taxes. The voluminouS
reports of the Hoover Commission, covering
every phase and branch of the Federal Gov
ernment, are designed to show specifically
how the administrative cost of government
can be substantially reduced, without in any
way imperiling policies and functions. If the
reports were accepted in toto, and their rec
concentrations adopted, the annual saving
would be about $3,000O 0O00,O0O-more than
enough to cover any conceivable present def
icit. However, the reports have not been well
received in all Congressional quarters. They
would reduce patronage, log-rolling, and
other popular practices. So it remains to be
seen just how much action will result If
taxes are increased, how will it be done?
The ideas which are most in the limelight
now include small increases in corporate
profits. on individual incomes above the $500
level, and on estates and gifts. But, in each
case, there is wealth of opposition. The
mood of the country, as whole, seems to
be that we're paying plenty as it is. The
plight of the taxpayer is made tougher by
the fact that states and cities are also out for
more money. This is especially true in Della
ware. Some municipalities have income
result is growing overlapping of taxes at
the expense of purchasing power.
NSo&S
ASPLIT AT THE TOP
Harry Truman is the leading Executive
in the Government of the United States
Harry Flood Byrd of Virginia is close to the
stop" in the Democratic membership of the
Senate Imagine President Truman break
ing loose at press conference with the bill
ious remark that "there are too many Byrds
in Congress" Of course every one knows tha
there is only one Senator named Byrd anC
that is the name of the leading orchardst il
Virginia, the Ex-Governor of the State, and
100 per cent citizen. One might well imagin
that there are too many Harrys in the Gov
ernment-Harry is in the White House, an,
other Harrys are in Government offices
Hox. uoy
he said: eff the President means he will at
tempt to purge me from the Senate because
will not accept his dictatorship in Legislation
then / will be on hand when the purgin
starts. :. / owe my allegiance to my cor
stituency in Virginia. So long as remain i
the Senate | will vote as my conscience diC
tates, and to reflect the wishes of my cor
stituents." The particular Harry who issue
that defiance is regarded as ga better ma
than you are President Harry,-Gunga Din
This isn't a very serious matter 1t all bega
with Senator Byrd's activity in defeating tt
Presidents nomination of Mon C. Wallgre
to be Chairman of the National Security r
sources Board. That's when the two Harry
split the Democratic ranks in the high place
of the Government.
HERBERT HOOVER FINISHES THE 10
1t seems strange that the man whose po
ularity sank to political low should con
to the top. Herbert Hoover "did it, with
complete plan for the reorganization of Il
executive branch of the government. Co
gress is about to approve the Hoover Pla
One thing that the Plan will do will be to C
down taxation and the reckless spending
money by the government The Preside
and the Congress are enthusiastic in prai
of Hoover. They even call him great STATE
man and great gentleman. So Congrat
lations Herbert Our country will be beti
for what you have accomplished, and cont