Evening star., 1949-02-15
Rayburn Sees
Truman, Looks
For Tax Raise
Expects Presidential
Statement Thursday
To Clarity Issue

~ ''sy sSSSS
House Speaker Rayburn said
today that 'in all probability
we'll have to have" an increase in
taxes.
He made the statement shortly
after a group of top Democrats
left a White House conference
with President Truman.
Mr. Rayburn told reporters he
was making the statement to deny
reports that tax legislation has
been pushed aside because the
House Ways and Means Commits
tee decided to take up social Sc
curity legislation ahead of taxes.
Deficit Financing Opposed.
THE President requested that
social security be considered ahead
of taxes" he said. And nothing
was pushed over on him."
He said he expected the Presi-
dent himself to make statement
Thursday "to try to dispell this
fog" about tax legislation.
Mr.. Truman has requested
$4,000. 100000 in new taxes.
Speaker Rayburn did not mention
this figure specifically.
Il don't see how any one can
be wise enough now to say there
should be no new tax legislation,
Mr.. Rayburn said.
If there is a probability of us
running into the red, think 1t
would be a reflection on all Of
us for us to do deficit financing
when the national income is at
such high level.
There will be time, as the pic
ture develops. to see what kind Of
tax bill we need to keep us out Of
the red.
Formidable Opposition.
In my opinion, in all probable
ity. in order to keep us out Of the
red we will have to have some tax
We must have money
to run the Government and we
certainly should have some to
reduce the debt"
Formidable opposition to any
tax increase this year already has
Chairman George of the Senate
Finance Committee last week came
out against any tax boost befors
next January. Senator Byrd,
Democrat. of Virginia said he feels
the same way.
Assuming that Senate Finance
Committee Republicans will OPP
pose tax increases. Senators
George and Byrd can block any
tax bill there.
Many Democrats have taken
the position that no tax legisla-
ton should be written until it Ia
clear how much Congress is going
to appropriate.
Social Security Discussed.
The President met with House
Ways and Means Democrats and
others to go over the entire social
security program.
No determinations were made
as to coverage or amounts for old
age assistance and other bene-
fits" Mr.. Ravburn said
Mr. Rayburn said the President
discussed social security very
frankly, got the reaction of the
conferees. and stood on his pre-
vious messages to Congress on the
subject.
Besides Mr.. Rayburn and the
Ways and Means Democrats, those
today's conference at
the Presidents invitation were
House Majority Leader McCor-
mack, Federal Security Admins
traitor Oscar Ewing and Social Sc
curity Administrator Arthur J.
Altmeyer.
Charles G. Ross, the Presidents
press secretary, was asked at q
news conference if Mr.. Truman
would have message to Congress
on social security. He replied that
a message "is being thought
about and eventually he believed
there would be another message
On health insurance.
One source said the expanded
social security program, if ap-
proved by Congress, might call for
almost s8,Oo0,o0o.o00 in payroll
axes next year. The amount now
collected annually for old age
and survivors insurance and for
unemployment compensation Ia
about $3,250, 900.
Any security tax boost would be
separate from the proposed $4,-
)00 nm 000 increase In cepera1