The potters herald. [volume] (East Liverpool, Ohio) 1899-1982, 1949-02-24
BEHIND TIE HEADLINES
TRUMAN FACES BATTLE
FOR HIS TAX PROGRAM
By Nathan Robertson
By Nathan X

by Nathan KODeTtSOH
Washington (LPA) - President
Truman has for the second time
in the past two weeks made it clear
to Congress and the world that he
expects new tax bill at this ses-
sion of Congress to balance the
economy and to provide revenue
for his "fair deaP' program.
But the President has a real
battle on his hands on this issue
which perhaps is hotter than any
thing he is asking from Congress
with the possible exception of ma
tional health insurance-an equally
integral part of his program.
For the two key men in Congress
Chairman Robert l.. Doughton
Cd. N. c., chairman of the House
Ways and Means Committee and
Chairman Walter George Cd, Ga.),
of the Senate Finance Committee
can almost alone make or break
presidential plans on taxes and
both are against the President, or
at least very lukewarm.
longtime observers have for
many years remarked how George
and Doughton-like the proverbial
Senator Claghorn-could always be
against taxes and for appropria
tions-although in this case they
are against both, in order to hold
down taxes on the rich.
Thruout the years when war call
ed for high appropriations to pay
for fighting and to avoid initiation,
George and Doughton always held
back from the Administrations full
tax program on the ground that it.
was too tough on the rich, or was
all that could be obtained from the
taxpayers despite the fact that
they found little difficulty in in
creasing taxes on the little work
ing guy many fold.
Then came the postwar period,
when George and Doughton quick
ly fell into line on repeating the
excess profits tax and cutting taxes
on the rich to bolster free enter
prise and get production underway.
This, they contended, was the way
to fight inflation-not high taxes
and price controls, as the admins
tration argued.
Over and over again from the
Georges and the Doughtons in Con-
gress the people were told during
the immediate postwar years that
lower taxes were necessary to give
business an incentive for. produc-
ton. This propaganda eliminated
last year with Congressional APP
proval of the Republican $4,000
000,000 tax cut for the wealthy
over President Truman's veto. 1t is
significant to note that both George
and Doughton opposed the Pres
ident's position on this vital issue.
Now President Truman with a
strongly Democratic Congres
ready to follow his lead in asking
for higher taxes to undo the dam
age done by the Republicans last
year. Both George and Doughton
are now contending that this is no
time for increasing taxes because
we may be heading for a period of
deflation, instead Of initiation and
you should never increase taxes if
you are fighting deflation.
That is very sound position
in fact it is the position all labor
and new deal economists have taken
for years. But it implies that in
times of initiation you should raise
taxes. In other words, if George
and Doughton today accept the
philosophy of taxes that the New
Dealers and labor spokesmen stand
for, why didn't they last year when
these economists were opposing
lower taxes?
The answer is that the Georges
and Doughtons in Congress can al
ways find a reason for cutting
taxes or opposing increased taxes
on the wealthy-but they never
can seem to find any reason for
lowering taxes on the working peo-
pie. They-like so many other peo-
pie in Congress who are business
men, lawyers or others with the
business viewpoint-always seem
to look at such issues through the
eyes of the country club crowd
rather than the working mans.
President Truman is sticking by
his proposals. He told his press