Evening star., 1950-06-24
The Political Min
Congress CertoIn to Vote
On Excise Tox Cut Bill
Problem Is Whether Other
Levies Should Be Roised
By Gould Lincoln

Congress, it is now apparently assured.
is going to vote on a bill TO reduce war
time excise taxes
The only oueStion-and this has been
the case since last January-iS whether
there is to be q reduction OF the excise
taxes with or without increases in other
forms of taxes, Under the threat Of
President Truman to veto an excise tax
reduction bill which does not provide
offsetting increases in other taxes. the
House Ways and Means Committee has
reported out a bill reducing the excise
taxes by sl.0l0, 900 900 and at the same
increasing taxes on large corporations
and providing for an increase in revenue
by plugging loopholeS in the tax law.
The President has won the first round.
The House committee reported out the
bill by a vote Of II to 8, with two Re-
publicans voting with the Democrats TO
report the bill. The Republicans do not
like the new tax bill at all. They will do
their best to strike from the measure
the proposed tax increases on corpora
tions. If they fail. many Of them may
be expected to vote for the bill anyway.
They. the Republicans. have been shout
ing for repeal or reduction of the excise
taxes for more than a year. House Mi
nority Leader Martin introduced q bill
to repeal many of these excise taxes back
in February. l949.
New Tax Increase Opposed.
The tax bill must be acted on frst by
the House. Then the Senate gets q whack
at it. Republican Senate leaders are
emphatic in declaring that an excise tax
reduction bill must be acted on before
Congress adjourns. That is the position
OF Senator Wherry Of Nebraska. "A BILL"
he said, must be passed before we ad-
journ. We promised to seek a reduction
OF excise taxes, and that's all there is to
it." He was unwilling to say. however. in
what form the bill would eventually
emerge. He. like other Republicans. is
strongly opposed to any new tax in
creaSeS.
In the Senate, the Finance Committee.
which handles tax measures. is headed
by Senator George of Georgia. Democrat.
Senator George has been for reduction
OF excise taxes and against increasing
other taxes. Other Democrats in the
Senate have been equally strong in their
opinion that this is no time to increase
taxes. This is particularly true of Demo-
cratic members of the Finance Com
mittee. 1t may be 1t will take a stronger
stand than did the House ways and
Means Committee. 1t may amend the
bill by striking out the increased tax
on corporations. when it comes time
for 1t to act.
Some Taxes Down. Others Up.
The Republican position has been
pretty well expressed by Mr.. Martin.
In his opinion the bill reduces taxes
on some taxpayers and increases them
on others: it will lower the prices Of
some goods and services, but at the
same time will tend to increase the
cost Of living because the corporations
will increase prices to cover the in
creased taxes the corporations have TO
pay.
What the Republicans have insisted
right along--and Democrats like Senator
George and Representative Doughton Of
North Carolina. chairman of the Ways
and Means Committee. have been in
clined to take the same position-is
that the loss of revenue occasioned by
reduction Of excise taxes should be
offset by a reduction in Government
spending.
The Truman administration, however
believes in spending, and apparently in
taxing, II necessary to continue spending.
One thing seems sure-the Republi.
cans are not going to put themselves in
hole politically by voting against a
bill which reduces excise taxes, when
1t comes to showdown. even II the
Dill does increase some other taxes.