The potters herald. [volume] (East Liverpool, Ohio) 1899-1982, 1950-09-21
Forces Profits Tox This Session
But Move To Insert II Now Fails

1O1 ali 1iIl1lChidbC NCA VII CALCos
profits has been lost. But the fight
was not in vain, for as a result
there may be an excess profits tax
this fall, instead of some indefinite
time next year.
Both House and Senate had re-
fused to include an excess profits
tax proposal in the pending tax
bill despite the pleas of labor and
liberal groups. Proponents of ac-
ton now made last-ditch fight in
the House Sept. ID, but were out
maneuvered. They did succeed,
however, in forcing through vote
directing the congressional tax
committee to report bill before
Jan. 1, to be retroactive to Oct. /,
1850, and perhaps even July l,
1850. Since there is a chance that
such a bill will be reported to the
House by election day, liberal
forces regarded the move as a vic
tory.
Under the action adopted, the
House instructed its spokesmen on
a House-Senate conference COM
mittee to report an excess profits
tax bill this year. Final vote was
331 to 2, but the near-unanimity
was deceptive.
The present bill, as amended by
the Senate, calls for the two tax
writing committees to take up ex-
cess profits proposals this winter
when the S2nd Congress meets.
But such a directive is "phony"
since the 81st Congress cannot is
sue orders to the SIND, Reps. John
Carroll Cd, Colo.) and Herman
Eberharter Cd, Pa told their col
leagues. Eberharter, strongly back
ed by Carroll, has led the fight for
excess profit taxation.
With a little more parliamentary
luck, the two Representatives
might have pushed an excess pro-
fit tax into the pending bill. Eber-
harter proposed one to replace the
Senate provision calling for action
next winter.
First, however, the House had to
act on a motion to send the pend
ing legislation to conference. Only
by defeating this motion could the
Eberharter forces get a vote on
their own proposal.
To the surprise of nearly every
one, they won that vote by al
humping. 225 to 106. After the vot-
ing started, members of both part-I
les suddenly began to realize that
they might look pretty bad on
election day if they flat-footedlyl
taxing the excess profitsl
of corporations growing fat on del
tense contracts. Reporters couldl
feel the atmosphere change whilel
the voting was in progress.
However, opponents of excess
profits had a trick up their sleeve.
Rep. Wilbur Mills Cd, Ark pro-
tested that Eberharter's proposal
was out of order. He said Eber-
narter couldn't substitute an actual
excess profits tax for a Senate
directing that the pro-
per committese consider such a tax
next winter.
To people whose personal income
axes are about to be raised 20 per-
,ent the parliamentary point might
lave seemed pretty small potatoes.
But Speaker of the House Sam
2ayburn didn't think so. He sus-
aimed Mills objection, thereby de-
aging excess profits legislation for
anywhere from a month to six
months. Rayburn had previously
lrgued postponement of the issue.
The measure whose adoption
Jarroll and Eberharter subsequent
y forced directs the Congressional
ak committees to report bill be-
ore Jan. /, which will be retro
ctive at least until Oct. l or even
uly l. 1t was up to the Senate
onferees to accept it or reject it,
ut many thought the House had
ut the Senate ON the spot. At anyI
ate, there was nothing to prevent
he House Ways & Means Commit
se from getting to work.