Evening star., 1951-06-28
|SnyderAsksRise
In Taxes, Byrd
Urges Economy
House Bill Con Be
| Cut to $4.6 Billion,
Virginiun Declares
By J. A. oLeory

asked the Senate today to add So
billion to the 81 billion House tax
bill, but promptly ran into oppo-
lSition.
AS the Finance Committee be-
gan open hearings, Senator Byrd.
Democrat. of Virginia, told the
Secretary that with proper cuts in
Government spending the House
tax bill could be reduced to $4.6
billion.
The Virginian gave these argu-
ments in support of his please for
a smaller tax increase:
l. The Treasury estimates COL
Ilections from existing taxes next
year at only $58.5 billion, whereas
Congressional experts think pres
|ent rates will bring in $60.9 bill.
lion. a difference of s2.4 billion.
Claims Resistance.
2. Congress could cut SO billion
from the spending budget if the
administration will join in the
economy drive.
Senator Byrd deducted this to-
tai Of $5.4 billion from the SO
billion total of new taxes urged by
President Truman. The Virginia
Democrat said, however, that "the
administration is fighting every
cut Gin spending) from the Pres.
ident down"
Mr.. Snyder said the $40 billion
total President Truman recon-
mended in April still is needed
to balance a 1884 billion spend
ing budget for the year starting
Sunday.
Mr.. Snyder suggested the Sen.
ate get the additional So billion
by raising the income tax rates on
individuals and the excise rates on
liquor. tobacco and consumer
durable goods higher than the
House placed them.
The House bill would require
individuals to add 1914 per cent
to whatever tax they would pay
on this years rates. This would
raise $2.9 billion.
Original Goal Reduced.
Mr.. Snyder told the Senators
the total yield from the 1914 per
cent increase in the present tax
bills Of individuals is equivalent
to boost of percentage points
in each rate bracket.
The Secretary recalled that the
administration originally wanted
an increase from individuals of
4 percentage points in each brack-
et, which would have produced
1873 billion instead of $2.9 bill
lion.
He suggested that "a percent.
lage point increase Con individually
in addition to the increase pro-
Ivided in the House bill would
achieve the Presidents revenue
goal from this tax"
Mr.. Snyder defended and urged
retention of House provisions de-
signed to get the tax increase in
effect without delay.
The House bill boosts the nor
NAL tax on corporations from AZ
to So per cent along with higher
excess profits tax. and makes these
increases retroactive to January J..
1851.
September l Date Fixed.
The House voted to let employ
ers begin withholding the higher
income tax on individuals Septem-
ber l. If that date sticks, indi-
viduals would pay about one-third
OF the new 1914 per cent a year
tax in calendar year 1851.
The Treasury, however, may be
disappointed by Senate action on
these starting dates. Chairman
George OF the Finance Committee
has indicated he does not favor
going back as far as last January
on corporations, and the bill may
not get through the Senate in
time to start higher collections
from individuals on September Ia
1t is virtually certain Congress will
not make any part of the indi-
vidual increases retroactive, be-
cause these taxes are collected
largely from payrolls.
Mr.. Snyder revealed that the
Government will close the fiscal
year Saturday night with a sur
plus OF more than So billion. His
statement made it clear, however.
that from now on the monthly
outgo for purchase of defense
weapons will increase rapidly, and
that on June 80, 1852, there would
be a $40 billion deficit unless a
tax bill Of that size is passed soon.
The Secretary also reminded the
Senators that the 81 billion yield
OF the House bill is for a full year
(C0ntinI1nd IN pooa . ro1 ~