Evening star., 1949-01-11
Middle Bracket
General Raise
In Tax Doubted
Eberhurter Measure
Aims at Corporations,
Incomes Over $4,000
BY the Associated Press

Low and middle salary groups
appeared likely today to escape
any general income tax boosts
this year in spite of a record
SAL ,858.000,000 peacetime budget.
In line with President Truman S
recommendation in his State-of- the
Union message last week for a
$4,000 100000 tax increase to come
largely from corporations and per-
haps from higher income groups,
Representative Eberharter. Demo-
crat, of Pennsylvania proposed a tax
plan aimed at corporations and per-
sons whose incomes are $4,000 a
year or more.
There was fairly general agree
ment in both Democratic and Re-
publican ranks that if President
Trumans spending program for the
fiscal year starting July is to be
followed, some one is going to have
to ante up more money.
Larger Payroll Taxes.
Also, if his social welfare proposals
are enacted, millions of workers and
their employers will have larger
payroll taxes.
Republicans shouted for economy.
They pointed to the spectre of a
deficit formed by the budget the
President sent to Congress yesterday.
The Democratic heads of the SEN
ate and House tax-Writing commit
tees, Senator George of Georgia and
Representative Doughton of North
Carolina. maintained a cautious DO
sltion. They said they want to see
how much money Congress votes to
spend before considering tax raises.
AS result, there is a strong pos
sibility that the legislative budget
provision of the Congressional Re-
organization Act will be suspended.
This provision requires Congress to
set an estimate on appropriations
and income by February IS each
year. 1t hasn't been effective in
past years and the congressional in
come-outgo goals have not been
binding.
Budget Ceilings Opposed.
Representative Cannon, Democrat,
of Missouri, who will head the
House Appropriations Committee,
said ne will ask the committee to
take the initiative to suspend the
budget ceiling requirement..
1T isn't workable" Mr.. Cannon
told newsmen. You can't tell with
accuracy by February Is what you
are going to do in the following
months"
Mr.. Cannon said he would work
to cut off every possible dollar from
the Presidents budget, half of
which Mr.. Truman has earmarked
for the cold war with Russia.
Mr.. Cannon called the budget
the most practical that could be
presented at this time" but figured
that if followed it would result in
a deficit for the fiscal year begin
ming July /.
The President himself estimated
the deficit for the year at S873. .000,-
900, but he has proposed that it be
wiped out and some cash be pro-
vided for national debt payment by
raising tax rates.
Halleck Sees Deficit.
"It's a matter of clear arithmetic
that we will have a deficit if we go
along with the Presidents program
said Representative Halleck of In
diana, Republican floor leader in
the last Congress.
Representative Taber, Republican,
of New York, appropriations chair
man in the 8Oth Congress, said the
budget will have to be "cut down to
EARTH"
Mr.. Taber didn't say where 1t
should be cut, but Representative
Bloom, Democrat, of New York,
slated to head the House For
eign Affairs Committee, cautioned
against deep slashes in the foreign
program.
Mr.. Doughton withheld comment
on Mr.. Eberharters tax increase
plan. but said some tax boost "is
possible"
Some Democrats contended that
in view of the Presidents and their
own campaign utterances, they could
not logically support tax increases
on lower income groups. They ham,
mered hard during the 1948 cleo
tioneering at the Republican-passed
tax bill of 1948, which they argued
gave the most relief to the wealthy.
Some Republicans joined with
Democrats in approving the Presi-
dents request to expand social
security insurance by raising from
l to ~ per cent next July l the
old-age insurance payroll tax on
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