Evening star., 1951-05-23
HouseUnitvotes
Flat 12.5% Rise
In Income Taxes
Ways and Means
Group OKs Boost
Over COP. Protest
By J. A. O'Leou

The House Ways and Means
Committee today voted for a tat
l212 per cent increase in individ-
ual taxes, and made other changes
in corporation rates which brought
a storm of protest from the Re.
publicans.
The 1212 per cent increase on
individuals takes the place of a.
plan tentatively adopted two
weeks ago to add three percentage
points to each tax bracket.
The new plan means a smaller
tax increase in the low salary
bracket and greater tax boost
in the higher brackets.
1t means that instead of chang
ing the table of rates, taxpayer
will compute his tax from the
present tables and add 1914 per
cent to the tax he would owe on
those tables.
Named Defense Tax"
The new levy, formally named
defense tax" would bring all its
1212 per cent weight to bear in
the next calendar year. If the
bill is passed by September l, it
will amount to 4 per cent for the
rest of the current year.
The Republicans failed in an ef-
fort to make the fiat increase 10
per cent.
The detailed changes voted to.
day In the corporation rates were
not Immediately available, but
aroused a burst of criticism from
Republicans. mainly over the way
in which changes were brought
about.
''Railroading" Charged.
Representatives Reed, Of New
York and Simpson of Pennsyl.
yania, veteran Republican commit-
tee members, came from the closed
committee room complaining that
the Democrats had gone into a
party caucus" in advance of to-
days meeting to agree on last
revisions in the tax bill and
then came in here and railroaded
u.s."
Chairman Doughton, Democrat,
Iof North Carolina, leaving the
room about the same time denied
the Democrats had been bound in
ia preliminary meeting to vote q
certain way.
Mr.. Doughton and the two Re.
publicans debated the issue in live
Ily fashion for several minutes
while reporters waited to get the
results of the meeting.
Change Called Unfair.
Mr.. Doughton asked the minori-
ty members if they were not
treated as fairly as the Democrats
had been treated when the Re-
publicans were in control.
Mr.. Reed insisted I'VE have been
run over roughshod" on changes
that are mot fair to the business
world"
The proposal the committee
tentatively adopted two weeks ago
added three percentage points to
each bracket in the tax table.
which was equivalent to a Is per
cent increase for the low-salaried.
and tapering off gradually to 4
per cent in the top brackets. One
plan would put more of the bur-
den on those earning more than
$4,000 and less below that point.
Seeking 6.5 Billions.
AS of today, the committee has
voted tentatively to raise about
SOS billion of the $40 billion in
new taxes asked for by the Presi-
dent.
Even if the House committee
finishes today, it may be three
or four months before Congress
sends completed tax bill to Mr.,
Truman.
The tax bill is the key to
whether Senate Democratic lead
ers will realize the hopes they
held yesterday for a recess dur
ing August and September.
Senate Majority Leader Nc
Farland of Arizona said the re-
cess would depend on how the
Senate Finance Committee de-
cides to handle the tax bill, which
it expects to get from the House
about the middle of June.
Senate hearings may last from
four to six weeks, which would
make it August / before the bill
is ready for the Senate. It would
then be up to Senator Mcfarland
to decide whether to debate the
tax measure through August and
take fall recess or quit August /
and put off the tax bill.