Evening star., 1950-01-03
The Political Mill
Congress Likely to Vote
Some Relief From Tuxes
COP. Members Say Constituents
Are Resentful of High Levies
By Gould Lincoln


How tax conscious are the American
people? Republicans returning to Washing
ton for the new session Of the Democratic
81st Congress say fatty they found their
constituents resentful Of high levies. And
they add that the increase Of so per cent
in payroll deductions, which began January
!, for social security is likely to make them
more tax conscious than ever.
With an eye to the congressional elections
next fall, the COP is not hestating for
moment to raise this high-tax issue. They
any future fireside chats to the people, might
start with MY taxpayers" instead of MY
friends or my fellow Americans"
Reed Jumps Cum"
Jumping the gun, Representative Reed of
New York. ranking Republican member Of
the House Ways and Means Committee.
dropped into the hopper on the first day Of
the new session new tax reduction bill, in
creasing the exemption Of individual income
taxpayers from the present $500 to $70o, lin
iting to so per cent of his net earnings the
amount which any taxpayer must pay on
his net earnings dncome). and relieving
stockholders from double taxation on divi-
dends by emitting him to deduct from his
gross income the amount Of dividends re-
ceived up to an aggregate maximum Of $500.
provisions designed particularly to aid the
small businessman. Also. Mr.. Reeds bill
scales down or eliminates many Of the war
time excise taxes.
Whether this bill is to become a party
measure remains for action by Republican
conference Of the House. At present it
represents the opinion Of Mr. Reed and, pre-
sumably, other Republican members of the
Ways and Means Committee. Minority
7 oIar6 - !
as strongly In favor Of reducing and elini-
mating wartime excise taxes, and perhaps
would go further in this matter than does
the bill offered by Mr.. Reed. He has esti-
mated that the repeal Of these excise taxes
Or bringing them back to the rates that
prevailed before the wartime rates as
proposed in bill offered by himself last
February-would reduce revenues by six or
seven hundred million dollars. He believes
that such sum could be saved In Govern
ment expenditures and would not require
dividual incomes.
Sees Rise In Revenue.
Mr.. Reed Is emphatic in contending that
his proposed so per cent tax limitation on
incomes will result In increased revenue
within years time. To back up his be-
lief he recalls that in 1921, when the top
rate was IS per cent, the $50 individuals in
tHe Top pIacket PAID only $68, ,000, 900; that
IN 1924. when the top rate was 40 per cent,
the number who paid had doubled and the
revenue was over $l35, ,0o0, 900, and in 1928.
when the top rate was down to 20 per cent,
the income vas over s4oo ooo,o 900 from that
source.
Coupled with their demand for tax re-
ducttons, the Republicans are insisting on
economy in Government expenditures. They
are planning to make real fight to reduce
appropriations.
The administration itself, whose ear to
the ground is no less attentive than that
OF the Republicans. seemingly has an inkling
OF resentment against high taxes It's lead
ers on Capitol Hill are talking about reduce
ing the excise taxes A lot, so far as the
Democrats are concerned, will depend, how
ever. on what the President recommends
IN his budget message, and in his proposals
Tor new Government activities-whicll cost
money.
Take 1t by and large. the American people
seem likely to obtain. some tax relief this
year; provided, Of course. the international
situation does not worsen and greater ex-
penditures for national defense become inn
perative