Evening star., 1949-11-19
The Political Mill
Spenders VS.. Savers Bottle
Due When Congress Meets
Tax Increase Proposals Worry
Lawmakers Up for Reelection
The Political Mill
Bv Gould Lincoln

Recent developments show more strongly
than ever the spenders and the savers are
going to the mat when Congress reconveneS
in January The administration, under the
leadership of President Truman, Is still
standing by the formula-tax and tax, spend
and spend. Mr.. Truman has just said again
taxes must be increased. With the Govern
ment going hourly further into debt by mil
lions Of dollars, Mr.. Trumans advice must
be followed unless there are drastic reduce
tions in expenditures, or the whole financial
structure may go on the rocks
Proposals to increase taxes, with con.
gressional election coming UP In November,
1850, send cold shivers down the Spines OF
many Of the men who must stand for re-
election. With so much at stake. the Presi-
dent shows no little courage in his demand
for increased taxes on people that Is already
carrying heavy burden, both in indirect
and direct taxes. The other view is that
it may be more popular to keep right ahead
with big Government spending, at the same
time trying to conf1ne tax increases to cor
porations and other businesses and to the
larger personal incomes.
Opposition in Own Party.
Mr. Truman will meet plenty Of opposi-
ton to his proposals for tax increases-apd
continued big spending-in his own party
on Capitol Hill. Most outspoken are Sena-
tors Byrd Of Virginia and Douglas Of Illinois,
the first conservative and the second
liberal Of liberals. Liberalism, however. in
the opinion of Senator Douglas, does not
mean being a spendthrift. Also the chair
men Of the House Ways and Means Commit
tee, Representative Doughton Of North Caro-
lima, and Of the Senate Finance Committee,
Senator George Of Georgia. have both in the
past been strongly opposed to tax increases.
Indeed, these gentlemen have placed the
emphasis on tax reduction, not tax increase.
Under the instructions of Chairman
Doughton, the tax experts at the Capitol
have been comforting for weeks with the
experts of the Treasury Department on the
matter of tax revision and tax reduction.
Mr.. Doughton will call his committee to-
gether when Congress reconvenes to study
the whole situation. All tax legislation orig
mates in that committee. One Of the main
demands for tax reduction lies In the field
Of so-called excise taxes-taxes on trans
portation, on communications, on electric
light bulbs for example. These were i'm
posed in wartime. The taxes fall on what
may be regarded more often as necessities
than luxuries. Repeal or reduction Of many
OF these excise taxes was proposed in bill
introduced by Republican Representative
"Joe" Martin Of Massachusetts, in the first
session Of the 81st Congress and had the
support of many Republicans.
The savers are violently opposed to the
enactment Of tax increases until Congress
shall have had at least try at cutting down
expenditures by the Government This Is
the position of Senator Douglas, who has
insisted that at least $4,300,000, 900 can be
saved by cutting expenditures for the fiscal
year 1951-and has mentioned just where
he believes the cuts can be made.
Tight" Budget Planned.
President Truman says he intends to send
to Congress q tight" budget, comparable to
the budget he submitted at the first session
of the 81st Congress. He says fatty that
it is impossible to cut Government expendi-
lures to an extent which would warrant no
increases in taxation. Whether it Is or not {
is up to Congress That body has never been
signally successful when it comes to reducing
Government expenditures. On the con-.
trary, it has usually increased them. Which
is certainly not the fault Of the President. -
Clarence Cannon's plan for a single, omni.V =
bus appropriation bill-instead Of ten or H.
dozen separate bi1ls-which as chairman Of
the House Appropriations Committee he is
going to try out should make it easier to
cut expenditures to the size Of expected rev. :
enues. That's Mr.. Cannons idea, anyway. -
The conflict between the spenders and the
savers may materially affect President Tru-
mans welfare state program. It's going to
be tough job to get Congress to approve,
new projects costing billions more dollars
There will be plenty Of talk about the high
cost Of socialization-in dollars and cents. :
1t looks almost like squeeze play, with the >
Truman program caught between the need
to save money and the demand for increased
taxes. 10