Evening star., 1950-06-22
Adjournment Plans
Hinge on Tax Cut Bill;
Taft Is Optimistic
By J. A. O'Leory

BY J. A. oIeoy
The tax bill today appeared toI
hold the key to Congress adjourn
ment plans as House leaders pre-
pared to pass 1t by the middle of
next week.
The big question is how long 1T
will take the Senate Finance Com
mittee to review a measure the
House Ways and Means Commit
tee spent several months drafting
The bill would cut wartime ex-
else taxes by 81 billion, which
would be more than Offset by
higher income taxes on big cor
porations. by closing loopholes and
by requiring business firms to pay
their income taxes more rapidly >.
Despite the uncertainty over a
timetable for finishing the revenue
bill. Chairman Taft of the Senate
Republican Policy Committee still
thinks Congress can complete its
= must" list and go home by Au-
gust S.
Taft Expresses Optimism.
& Senator Taft told reporters late
yesterday that members of the
Appropriations Committee are
more optimistic than they were
earlier over the outlook for
prompt action on the big one
package budget bill, still awaiting
Senate action. Until now the ap-
propria ton bill had been regarded
as the issue most likely to keep
Congress here all summer. The
tax bill suddenly has become the
big problem worrying leaders who
would like to get home for the
fall election campaign.
There is general support for the
excise cuts to give consumers
some relief from the taxes that
were imposed as a war measure
on travel, entertainment and a
score or more of everyday pur-
chaSes.
The discord is expected to arise
over the increases in corporation
taxes, which the House committee
had to adopt to save the excise
cuts from veto. President Tru-
man had served notice he would
; not sign the bin unless losses were
offset by revenue from other
sources.
George Silent on Position.
Although Chairman George Of
the Senate Finance Committee
has not yet revealed what posi-
ton he will takes on the House
corporation tax increases, it is
known that he had hoped to avoid
raising taxes at this time. All he
has said since the House commit
tee acted is that the Senate
committee will start hearings
promptly.
Another complication is the fact
@hat by the time the tax bill is
ready for Senate hearings the first
week in July. five leading mem
bers of that committee will be
tied up in conference with the
top-ranking members of the Ways
and Means Committee on the
social security bill. That bill In
wolves numerous technical details
that may take several weeks to
adjust.
The decision. of the Ways, and
Means Committe to include in its
tax bill both the higher corpora
ton rates and the Mills plan to
speed up corporation tax pay
ments may give the Finance Com
mittee a basis for compromise.
The corporation tax "speedup"
sponsored by Representative Mills,
Democrat, of Arkansas would not
add any new revenue to the over
all tax burden. but it would i'm
prove the Treasury's balance sheet
during the next five years, by
gradually stepping up the per-
centage of business taxes that
would have to be paid in the first
six months following a taxable
year.
Most observers doubt that the
Senate will take both the higher
rates and the speedup plan. in
the end. one or the other prob
ably will go out of the final draft
of the tax bill.