Evening star., 1951-06-21
ST. Billion Rise
In Taxes Urgent,
|Doughton Says
| Any Higher Amount
Connot Be Imposed,
House Leader Asserts
BY the Assoeiaisd Press

Representative Doughton. Dem
ocrat of North Carolina, asked
the House today to approve a $7.2I
billion tax increase. and said he
didn't see how the rates could be
boosted any higher.
The 87-year-old North Caro-
Iinian heads the Ways and Means
Committee which drew up the bill,
due to come to a final vote in the
House late tomorrow.
He indorsed the huge proposed
increase, largest in American his
tory. as urgently needed to finance
the Nations defense program. But
he told his colleagues solemnly:
IT consider it unlikely that we
shall be able to increase substan-
TALLY the yield Of the Federal tax
system beyond what Is included
in the present bill.
Reed Criticizes Bill.
II say this in all frankness and
sincerity. for I consider it essen
ltial that we face up to the fact
that any higher tax rates on either
individuals or corporations or ex-
cises would be exceedingly burden
some and difficult to impose"
Representative Reed Of New
York, the senior Republican on
the Ways and Means Committee,
took the floor after Mr.. Doughton's
opening statement and described
the measure as "a bill to author
ize the bureaucrats to turn the
taxpayers pockets inside out" If
enacted, he said. it will fulfill the
dream of ."the hard core of the
Socialist planners within the Tru-
man administration"
Mr.. Reed said the bottom of
the tax barrel already has been
reached, and demanded that the
administration cut back it's spend
ing program to keep the Nation
solvent. He declared at least So
billion could be saved by reduc-
Itions in the foreign economic and
military aid programs, defense ex-
Ipenditures and the ordinary oper-
ating expenses Of the Govern
Iment.
i Finds Praiseworthy Proposal.
/ Amid his criticism, Mr.. Reed
found one provision Of the bill
,praiseworthy-the proposed II
'lper cent tax on the take Of book.
makers and lottery operators.
! Mr.. Doughton said that undel
the current fiscal situation, Con,
IgreSs has three choices: Increas,
taxes even higher than proposes
in the pending bill: re-examin,
and reduce Federal spending, boil
/, the ordinary operations Of Gov
ernment and the military ant
foreign aid budget; or embark ol
S a renewed program Of borrowing
and deficit financing.
He rejected the idea of defici
e financing. saying it would con
-tribute to imitation and nigh
o permanently impair the Govern
e ment's credit. He said the pro
v posed 81 billion tax increase is "a
It large an amount as could safel
: be collected from the econom
= under present conditions" Henc,
d he concluded:
e 1.-THE only sound course, in m
- opinion, is to re-examine the scor
!" of Federal activities and to Gu
d expenditures to the bone"
Is Income at Record Levels.
:, The chairman of the tax-writin
= = group noted that this is the thir
. - tax increase considered by Cor
/. |gress since the outbreak of tn
- Korean war year ago. Take
- together, they account for an est
- :, mated yearly revenue increase
y more than SIT billion. Speakir
g of the pending measure, M
!" Doughton said:
"To those who maintain that Il
bill would impose too heavy a bu
81 den, I point out that personal il
10 come and corporate profits are
& record levels. and that most pc
pie will still have. after the high
ng taxes are paid, larger take-hor
delpay than they have ever previous
or Ienjoyed.
rs "To those who contend that t
bill does not impose the addition
(See TAKES, Page A-13)
rn