Evening star., 1951-09-27
The Political Mill:
Congress Revolt Grows
Against Higher Taxes
Administration Action Urged
On Price and Wage Control
By Gould Lincoln

The revolt In Congress against the
administration remedy for initiation
higher and higher taxes-has been
growing for months. It has finally
manifested itself In the consideration
of the new tax bill. which the House
cut from $40 billion, demanded by
President Truman, to $7.2 billion and
which the Senate Is engaged in pruning
to $5.5 billion. The demand, on the other
hand, is that the administration act ef-
fectively to control prices and wages
as the great checks on inflation-and
that Government spending be reduced
to the lowest possible limit consonant
with the defense program. And finally
that waste in spending billions Of the
taxpayers money be reduced.
Senator Walter F. George, the Demo-
cratic chairman Of the Senate Finance
Committee who has charge Of the tax
bill IN the Senate, in a recent remark
able address in the Senate put his fin
ger on the weakness in the defense
against initiation. He said:
II am willing to do whatever should
be done for my country, but I am
bound to say now, and stand back Of
it, that this administration has had but
a mild will, at best, to control prices
and wages. Control of both is absolutely
indispensable If we are to avoid infia-
tion."
Higher and Higher Taxes.
Yet, Senator George pointed out, the
administrations constant cry is for
more and higher taxes-to prevent in
flatioN AnSmeripO fI,iS doroord Caro%o~
George said to his colleagues:
go back home and ask the poor man
who is earning two, three or four thou
sand dollars year under present pre-
vailing high prices how much he is add
ing to imitation. How much do we want
to take out Of his pocket to stop infla-
ton? He is not adding to imitation. Go
and ask the teachers, the policemen; go
and ask the merchants in the small
towns; ask any one who is working for
a very moderate salary. How much have
you got that you are using to push up
the inflationary spiral?' and see what
sort OF answer is made. Such a worker
will say frankly that he does not need
any Government nor any agency Of
Government to tell him he must be
taxed more in order to keep him from
destroying himself through imitation" 4"
The Georgia Senator gave as his def
inition Of the present cause Of initiation
''the disposition of the administration
to spend more than the American people
ought to be called upon to bear as
taxes. and he added, Unless we face
that issue we shall never come out Of
this thing"
Burden Increased Since Korea.
Take look at the tax increases which
have been placed on the shoulders Of
the American people since the outbreak
Of the war In Korea. Congress voted
before the new and pending tax bill
measures which took $40 billion out of
the pockets Of the American taxpayers.
Much Of it, as Senator George pointed
out. came from the little fellow with
a $4,000 income. Add to this increased
tax burden the new tax bill and a total
OF $16 billion or SIT billion in additional
taxes will have been levied since the
first shot was fired in Korea. Senator
George commented; "Yet that does not
satisfy them (the Administration The
cry is More, more, more Why? Do
need to answer?"
He proceeded to answer, however, by
reading letter from Bernard M. Ba-
ruch, in which Mr.. Baruch estimated
that if the administration had moved
Immediately to put into effect controls
OF prices and wages and other controls
like credit controls, the Government
would have been able to save $14 billion
OF the money it has had to spend and
is spending and will spend for the de-
fense program. But, Mr. Baruch added:
The Government has done nothing
except to thunder in the index"
The administration effort to deal
with initiation has been too little and
too late. First, because there was an
election coming up last year, and il
hesitated to impose controls which
might irritate the voter. Second, it con-
tinues to rely on open-handed spending,
by the Government, as the surest way Of
winning an election In 1852.