Evening star., 1949-01-23

Mr.. Truman, in his message to
asked for new tax legislation capab
revenue. He has also asked for a !;
tax for social security, including
proposed Government payment OF
doctors for medical care. This
would mean a boost from the
present figure. $3,25o, ,0Oo, 900, to ap-
proximately $4,000, 100000, or an
other s4,75o,OOo,ooo taken, one-half
from employees and one-half from
employers, into the Government
Golfers.
Democratic leaders in Congress
frankly look with disfavor on new
taxes-in peacetime. They are
aware. however, that if Mr.. Tru-
mans program. contained in CAM
paign pledges, is to be carried out,
there must be more revenue coming
in or the national debt, now some
s252 ,OCO 100000, will have to be in
creased because of deficit spending.
The alternatives they face are not
pleasant.
inclination to Go Slow
There is, therefore. a distinct In
clination to 60 slow in the matter
of new tax legislation. While Sem
ator George of Georgia, chairman
of the Senate Finance Committee,
and Representative Doughton OF
North Carolina, chairman OF the
House Ways and Means Committee,
have refused to make any predic-
tions regarding tax legislation, it is
no secret that they want a clearer
picture of what may be expected
before such legislation is tackled,
first in the House and then IN the
Senate. They want to know par
ticularly what are to be the likely
expenditures of the Government
during the coming year. They want
to know, too, what may be the con-
dition of business and employment
several months from now.
One of the reasons given by the
President for asking an additional
81, 900, 100000 in new taxes was to
place a restraint on imitation. Signs
now point, however, to reductions IN
prices, reductions, perhaps, in pro-
duction, and less employment II
the infationary trend has been
checked, it becomes increasingly
important for the legislators to know
what's ahead, before they go to
imposing new or additional taxes on
industry. They must have this pic
ture also before they determine the
kind of taxes, if any, they place on
business. Obviously, if there should
be a falling off in business ano
industry, new burdens on them
through taxation would be a hard.
ship.
Chairman Doughton has not re.
vealed a probable date for beginning
hearings on a tax bill before his
Ways and Means Committee. That
is where the consideration Of new
taxation begins on Capitol Hill, since
the Constitution provides that all
taxes shall originate in the House
There is a growing belief, however
that tax legislation may be delayed
in the House until March, and that
it may not reach the Senate until
April or even May.
Only the President, so far, has
given any impression as to the
direction the new taxes, if they are
imposed, will take. In his message
to Congress he suggested there
should be additional corporate taxes
but made no mention of an excess
profits tax-revised estate and gift
taxes and that consideration should
be given to raising personal income
tax rates in the middle and upper
brackets"
Increases May Start at $4,000
At a recent press conference, Mr..
Truman was asked what he con-
sidered middle bracket" incomes.
He replied from $4,000 to s25,O00 or
$4,000 a year. If his suggestion
regarding personal income taxes Is
carried out, therefore, it may be
expected that the increases will
begin at $4,000 a year. The higher
brackets are already heavily taxed,
so heavily that it seems impractical
to get much more revenue from the
very wealthy. The great burden OF
additional income taxes may be
expected to fall on the middle
bracket taxpayers.
The President, however, made no
hard-and- fast blueprint for the leg
islators to follow on tax legislation.
If and when he does, it probably
will come through recommended
tions made by the Secretary of the
Treasury when he appears before
the House Ways and Means Com
mittee. Both Representative Dough-
ton and Senator George have ex-
pressed qualification, however, that
Mr.. Truman has apparently left the
details of tax legislation up to Con-
gress. Mr. Doughton significantly
made the statement that "the peo-
pie must be convinced we are not
wasting money" before they will go
along with tax increases.
Many Want Expenditures Cut
What the legislators would like
to do, in many cases, would be to
economize on expenditures so that
new taxes will not be necessary.
But that seems impossible if Mr..
Truman's many recommendations
for legislation which would make
necessary large Government spend
ing are not to be thrown out. So
the Truman program in part is