Evening star., 1950-07-23
Congress Due 10 Act
Quickly on Controls
And Defer Tax Boosts
By J. A. O'Leury

the Korean crisis, but is not likely
to put through any quick tax
increases.
The House and Senate Banking
Committees called meetings for
tomorrow morning to hear w.
Stuart Symington, Chairman of
the National Security Resources
Board, on the flve-point produc-
ton control bill.
Although individual members
continued to call for equal speed
in boosting taxes, Chairman
George of the Senate Finance
Committee stood firmly yesterday
against starting a wartime tax
bill until the international picture
is clearer.
DoughtOn Orders Tax Study.
Chairman Doughton of the
House Ways and Means Commit
tee, in which all revenue bills
must originate, said he has not
formulated any definite ideas
about the tax situation. He said
he has directed the committees
experts to begin studying the
matter, but indicated that, be-
yond that step, he would await
tax message from the President
In his report to Congress hast
Wednesday on the Korean crisis,
Mr.. Truman said he would pres
ent balanced tax program at
IAN appropriate time"
Arms Plan Due Tuesday.
Other developments on Capitol
Hill this week will include:
/. President Truman hopes to
give the lawmakers by Tuesday
the blueprints of his $40 billion
program to build up the Nations
military strength.
2. The President on Wednesday
expects to transmit the mid-year
report of his Council of Economic
Advisers. which may throw fur
ther light on the part the ad-
ministration thinks taxes should
play in meeting war costs and
curbing imitation.
3. The Senate will struggle
along for at least another week
on the $34.6 billion omnibus
budget bill, carrying the regular
operating expenses of the Federal
Government for the ensuing fiscal
year. ]
4. The House is due to passi
Tuesday the two bills removingI
the ceiling on the number of menl
who may be taken into the armed
services. and authorizing theE
President to extend all enlist
ments for IL months. The Senate
has passed the extension of en-
listments, and probably will vote
early in the week on removal of i
the ceiling.
5. House and Senate conferees
hope to iron out final agreement
on the Social Security bill, adding
10 million individuals to the 35E
million now eligible for Federal
old-age retirement, and increas-
ing the monthly payments. /
Senator George told reporters
yesterday he does not regard a.
third World War as inevitable.
and believes it may not occur i'll
the United States becomes "rea-
Sonably strong"
II don't think it would be wise |
to undertake the writing of tax
bill at this time, because we don't
know the magnitude of the need"
said Senator George.
His view of the tax problem
came only day after the Joint
HouSe-Senate Economic Commit
tee, presided over by Senator
O'Mahoney, Democrat of Wyom-
ing, had suggested immediate &C
tlon both on taxes and economic
controls.
Senator OMahoney took the
position that, with the national
debt already at $257 billion, we
cannot afford to push the cost of
this effort off on the next gen.
Grafton"
Senator George agreed that the
cost OF any new war would have
to be financed largely on a pay
as-you-go basis because of the
present debt. He appeared to differ
with members of the Joint Eco
nomic Committee on the wisdom
OF raising taxes Immediately.
Another Democrat on the FL
nance Committee-Senator John
son of Colorado-came out yes
terday for an immediate tax boost.
He indorsed the plan of Seator
robertson, Democrat of Virginia.
to add 10 per cent to the income
tax bills of all individuals and
corporations. He said it could be
done by drawing up a bill con-
slstlng of one or two sentences.
IhlS plan would not change the
rates or exemptions. The tax
payer would compute his tax on
the present forms and then add
10 per cent.
Mr.. Doughton indicated he
thought Congress would be in a
better position to work out a tax
bill after the Fall election.
George Opposes Bigger Debt.
Senator George said if there |
is another war it will have to
be financed out of taxes, as far
as possible, rather than through
piling up a larger debt.
1T would mean a very high tax
burden, but it would be better in |
the long run for the American
people,, said Senator George. "IfI
you ran the debt up another 5000
billion, there wouldn't be veryI
much for the people who went
out to fight to come home toll
The Georgia Senator added al
more optomistic note, however. by
declaring:
II am not in the class of those
u