Evening star., 1951-06-28
Snyder Urges Rise
In Taxes, While Byrd
Suggests Economies
Continued From First Page.)

Continued From First Page.)
Of operation, and estimated that.
as it now stands. the House meas
ure will add only about $4.5 billionI
to Treasury collections within thel
fiscal year ending next June. Mr.I
Snyder said the Treasury asked
the House for effective dates thatI
would have brought in So billion
Of the new revenue within theI
next fiscal year.
Long Hearings Likely.
There is no escaping the con-
clusion," said Secretary Snyder
"that we will not be able to stay
within reach of a pay-as-you-gol
policy unless the yield OF this bill
is raised and the legislation isl
completed quickly, so that the
increased taxes can be made ef-
fective aS early as possible"
Mr.. Snyder told the committee
the current national debt of $255
billion is SIS billion below what it
was when he became Secretary of
the Treasury in 1916. He said
this accomplishment offers little
comfort for the future, however,
because heavy defense spending is |
in prospect in the years ahead.
Without the proposed new taxes,
he said, two-thirds of the debt re-
duetion made in the last five years
would be wiped out in the coming
year.
Cuts in Requests Cited.
In urging the Senate to take a |,
bigger tax bite from liquor, to-
bacco and some other excise rates,
Mr.. Snyder pointed out that: |,
The House bill raises liquor ,
taxes by, $3.50 million, instead of
by $670 million recommended by :
the President.
It increases gasoline taxes by !
$500 million instead of 5000 mil ,
lion favored by the administra-
tion.
The House bill puts an addi-
tional SITS million on cigarettes,
while the Treasury rates would
produce $500 million.
Mr.. Snyder also said it would
be desirable to increase The rates
on such durable goods as tele-
vision, radio and other electrical
appliances. in view of the de-
mands Of the defense program.
Senate Democrats voted unani-
mously Tuesday to stay in ses-
sion all summer to work on the
tax and other must bills, but it
is still doubtful that the revenue K
measure will become law in time
to start higher payroll withhold 4
1ngs on September /. The hear
1ngs which began today may con-
tinue for several weeks, after i
which the committee must delib-
crate on changes. Then comes the
fioor debate. on which no time
estimate can be placed. I
Bids Asked on Securities. h
Indicating that he expects the
Government to run heavily in the
red for the next few months at h
least. Mr.. Snyder last night,
launched the first deficit f1nanc- K
ing project undertaken by the Ii
Treasury in nearly a year. II
He invited bids for $1.2 billion Il
In 91-day securities to be issued :
July 5. This move was aimed at
covering 81 billion in like secur- !
tiles falling due then, and to h
provide an extra $500 million in h
new money" for Government Ir
Xxi :.
Coming on the eve of Mr.. II
Snyder's appearance before the 9
Senate committee, the move into q
def1cit-flnancing may have been
timed to strengthen his plea for
more taxes.
The start Of cit-financing d
operations now was somewhat of n
q surprise since the Treasury has v
over 81 billion in cash on hand q
now and should add to that O
amount over the next few DAYS d
on the strength of a heavy season d
Of tax collections.
Revenue for fiscal 1851 already s
has exceeded outgo by more than Y
30 billion. Y
Lawton and Wilson to Testify. Ir
However. even with a prompt c.
boost in tax rates-the Govern F
ment likely will run in the red by
perhaps several billion dollars in N
,he next six months. c.
After Mr.. Snyder, the Senate b
committee plans to hear Budget p
Director Frederick j. Lawton, 81
Charles e. Wilson, defense mobili- a
sation chief, and other top off,
:ials. /!
ts
LOST. N