Evening star., 1949-08-23
New Drive Launched
In Congress for Cut in
Excise Tax This Year
By the Associotsd Press


Christmas in wartime excise tax
rates was launched in Congress
today. 1t developed in the face
of forceful statement by Chair
man Doughton of the tax-framing
House Ways and Means Commit
tee that he sees no prospect for
such a tax cut this year.
Mr.. Doughton said the threat
of a Federal deficit OF $4,000. .OOO,-
600 or more in the present fiscal
year virtually forecloses hope for
such a slash now.
But House Minority Leader
Martin, author of an excise-cut-
ting bill, said: Maybe if we bring
enough pressure, we'll still get
something done"
Two Democrats - Representa-
tives Multer of New York and
Davenport. of Pennsylvania-took
the House floor to demand re-
duction of wartime rates. These
amount to 20 per cent of the
retail price of many items such
as furs, cosmetics, jewelry and
luggage.
Hope for Relief in 1850.
Still, the best bet right now is
that Mr. Uougnton is rlgnJ-Jnat
there will be no SLASH before per-
haps sometime in 1850.
L believe it is important" said
Mr.. Doughton, the NO. l congress
sional tax spokesman. Ito make
this clear so that consumers will
not postpone the purchase of
goods subject to tax in the hope
of an immediate reduction"
However, Mr.. Doughton did
hold out some hope for excise tax
relief in 1850.
He announced he has instructed
the congressional staff of tax ex-
perts to begin a study OF possible
tax revisions and reductions, for
consideration by Congress next
year. But if excises are lowered,
there is q possibility other taxes
may be raised to make up the
difference, Mr.. Doughton said.
A cut in Federal spending would
help . tax cut most, he declared.
Yield Billion Year.
The wartime excise levies yield
upward of 81 200, ,000. 900 annually.
The Senate Finance Committee
has approved a bill that would
cut the rates back by about $780,
100000. This would affect about
all the wartime rates except the
levy on liquor.
Mr.. Doughton said he issued his
statement to clear up the confu-
sion about tax reduction. He
said he agreed some of the levies
are very burdensome, especially
those on communications and
transportation" But he said
Congress must take into account
the Nations money conditions,
the deficit and balanced tax
treatment Of the situation before
it acts.
Mr.. Multer headed up his tax
speech to the House yesterday:
"Xcise Taxes and Xmas.
"Mr. Speaker" he said, II take
this time to call attention to the
fact that we have 102 shopping
days to Christmas. It presently
appears to me that we will not
be out of these trenches (mean-
ing Congress may not adjourn)
by Christmas. Accordingly. I
want to leave the thought with
you and your families and your
friends that for every dollar they
intend to spend they must add
an additional 20 per cent for
excise taxes"
Asks Quick Vote.
He asked the House members to
sign a petition to get vote quick
on his own bill to reduce the
excises.
Producing a woman's handbag,
Mr.. Davenport said some people
called the exicses levies luxury
taxes"-and that's nonsense"
He held up a lipstick, powder
puff, a bottle of hand lotion.
billfold and even wedding ring
and took from his pocket can
of baby powder.
He wanted to know how any
body could consider these things
luxuries.
Mr.. Martin Joined the two
Democrats in appealing for quick
action on a tax slash. He argued
that the Government would not
lose revenue because. he said, the
lowered tax would mean increased
sales of many items and more
revenue from increased business.