Toledo union journal. [volume] (Toledo, Ohio) 1942-current, 1950-03-03
Robertson Predicts
Price Cuts Of Billion
Dollars Or Up
Friday, March 3, 1850
BY NATHAN ROBERTSON
For Labor Press Association

w Drew pearson, mere are a rev IOrccdStS.
/. Consumers are about to get their biggest
break since the war--price cuts of 81 billion
to So billion year-through repeal of federal
!, sales taxes on such things radios, electrical
equipment, fur coats, jewelry, tires and tubes,
sporting oods entertainment, travel, communl-
cations, and electricity.
O. Loss of revenue will be made up partial
ly from income taxes on increased incomes
and higher profits resulting from expanding
business and partially from higher tax rates
on profits of big corporations. Small corpora
tions will get break.
8. The Lodge-Gossett constitutional amend
ment for reforming our election system will
have tougher going in the House than in the
Senate as a result of split in liberal support
for the proposal.
4. Tougher days are ahead for monopolies.
The Cellar monopoly investigating committee
of the House has hired shrewd former anti
trust lawyer - Edward H. Levi of the Uni
versty of Chicago-as chief counsel. He will
become famous Judge Ferdinand Pecora
became in the investigation of j. P. Morgan
and Co.
The coming price cuts are the biggest news
for consumers since ratoning was ended after
the war. Price cuts will range from 10 to rs
per cent on long list of essentials and luxur-
les, and smaller price reductions on many
other commodities because of lower freight
rates an dother business costs
This Is big news not only for consumers,
but also for businessmen. 1t means expanding
business, and an expanding economy. It means
higher profits, more jobs and better business
all around. Every kind of business will share
to some extent in the boom created by lower
prices and lower business costs.
just how big price cuts will be and how
soon they will come can not be forecast yet.
Congress is just beginning to work on the tax
cuts. But they will run somewhere between 81
billion and So billion year-far beyond what
President Truman recommended They will
probably be effective about mildly They
hwill not affect prices of liquor, tobacco, or
: gasoline, but most of the commodities and
services listed above will probably be in
cluded.
This means that household bills will be
lower. Vacations next summer will be cheap
er. More people will 60 to movies and belon
to clubs
Leon Henderson, who has been hired by
the businessmen engaged in making and SELL
Ing these taxed commodities did the big SELL
Ing Job In Congress He convinced the Con-
gressmen big cuts can be made without wreck
ing the Treasury He ought to know because as
price administrator-he was more influential
than anyone else in putting the taxes on dur
Ing the war, when he wanted to curb the use
Of many of these things
To make up what revenue is lost some
loopholes will be closed, but not as many an
the Administration wants The special inter-
ests benefitting from these loopholes are too
powerful. Instead, Congress probably will
raise taxes on the big corporations from s8 per
cent to 40 per cent or more.
Liberals provided most of the votes for the
Lodge-Gossett amendment in the Senate Now
they are split. The National Association for the
Advancement of Colored People has backed
away scared that the Negro vote in the North
will not be 80 strong politically. Others in the
hberal-labor coalition that has been electing
the Democrats are worrying on the same score.
They are afraid that instead of competing for
liberal swing votes in the North, the two par
ties will begin competing for the conservative
votes In the South.
This would mean more conservative presi-
Dental candidates. more conservative policies
In parties If the liberals split, the amendment
probably will not get through the House. be-
cause 1t needs a two thirds vote and Taft con-
servatives already opposed on different
! lgrounds-that the amendment would hurt Re-
publican chances
Most liberals still support the Lodge-Gos-
sett plan, however on the ground that il
moves closer to real democracy, closer to
popular elections of presidents They believe
1t would develop two-party system in the
South, with the liberals lining up as Demo-
Gratis, conservatives Republicans. This
would bring the long -hoped-for realignment
of parties with the Democrats more liberal,
the Republicans at least as conservative. The
Democratic party would no longer be held
back by the ultra-tory Southerners now listed
as Dixiecrats. They would move into the Re-
publican party
Under the Lodge-Gossett amendment the