Evening star., 1951-09-30
George Opposes
More Peacetirne
Tax Increases
Present Bill Is Last
He Will Support,
Senator Declares
By J. A. oIeory

Chairman George Of the Senate
Finance Committee served notice
on the administration yesterday
tnat the pending tax boost Of at
least $5.5 billion is the last tax
increase bill be will support un-
less an 'all-out war crisis" de-
velops.
The House voted for S7.2 bill
lion Increase. and when joint
confer 9nce committee settles the
differences between that and the
Senate's SIS billion bill. President
Trumen probably will get a little
more than Sc billion, instead OF
the $40 billion he requested.
When reporters asked Senator
Georee if he thought there weuld
have to b. another tax increase
at the 1852 session of Congress, he
replied.
Short Of an all-out war, this
Is the last tax increase bill I ex-
+pect to be tor. 1t will be up to the
Executive branch to cut spending
and to cut with a will. Regard
less OF how much is spent, I do
not expect to support another tax
increase unless there is a war
crisis. Then. of course, all bets are
of"
Sees Need For Reduction.
The Georgia Democrat pointed
out that, in a full year of opera
ton. the bill now going through
final stages will run the govern
ment's total receipts up to SGT or
500 billion Then he added:
"rhat's enough to spend in a
year, and about SIS billion more
than we should spend, even in a
stepped-up defense program"
The Finance Chairman went a
step further by suggesting that,
If all-out war does not occur,
Congress by 1854 must begin to
consider reducing these emergen-
cy taxes. The pending measure
is the third tax bill passed since
fighting started in Korea.
Meanwhile, Congressional lead
ers, who had hoped to adjourn by
October /, now appear to have
at least three more weeks of work
before they can ring down the
curtain on the 1851 session.
Other Actions Pending.
In addition to a conference
agreement on the tax bill, both
houses must still act on: The con-
ference report on the $7.5 billion
foreign aid authorization, and a
separate foreign aid appropria-
ton bill. Five other appropriation
bills require varying degrees Of
action. And the Senate is plan
ming to reopen several features Of
the new price control law in an
enort to meet Presidential OBJ
jections.
Chairman Cannon of the House
Appropriations Committee believes
that, as far as appropriation bills
are concerned, Congress could adj
journ October 13.
Representative Priest of Ten
nessee. Democratic whip of the
House, predicted. however, the
wind-up of the session will come
sometime between October 90 and
November l.
Chairman Doughton of the
House Ways and Means Commit
tee and Senator George agreed
yesterday the conferees should be
able to settle all differences over
the tax bill by the end of this
week.
Individual Raise Pushed.
They may settle the increase
on individuals first. so that Trea-
sury officials can begin bookkeep-
ing arrangements necessary to
apply the higher withholding
rates to November payrolls. The
House voted to increase by 1914
per cent the tax an individual
pays under existing law. The Sen
ate cut it to II per cent for most
taxpayers. except in the high
brackets.
Another big issue in conference
will be a group of Senate amend
ments which scaled down the ex.
cess profits tax yield by $72o mil
lion. About $120 million of this
reduction is in the form Of relief
(See CONGRESS. A-4.l