Evening star., 1953-07-16
Senate Avoids Fight,
Passes Profits Tax
Bill Without Change
By Robert K. Welsh


The excess profits tax today
needed only the assured sigma
ture of President Eisenhower to
start operating again until De-
cember 81 and to raise another
$500 million.
The Presidents request for a
six-month extension won final
congressional approval late yes
terday at a Senate session calm
and brief in comparison to ear
lier wrangling in the House.
The Senate defeated, So to 81,
an amendment proposed by Sen
ator Williams, Republican. of
Delaware to exempt corpora
tions with net earnings of less
than 100000 a year. The levy.
which expired July / and now is
revived, has $25,0 ZOO level.
Leaders Oppose Change.
Senate Finance Committee
Chairman Millikin of Colorado
and Senator George of Georgia,
ranking Democrat on the COM
mittee. Joined forces in urging
the Senate to adopt the House
bill unchanged. They said the
Williams amendment was a
worthy attempt to assist small
and new businesses. They warned,
however, that if the amendment
were adopted it would open the
door to numerous other pi opposed
changes and also stir up trouble
all over again in the House.
On the test vote, before pas
sage of the bill on a voice vote,
nine Republicans and 25 Demo-
Gratis voted for the amendment.
The voice vote indicated only a
scattering of mo" votes against
the extension bill itself.
In view of earlier reports that
the Williams amendment was
satisfactory to the White House.
Senator Millikin informed his
colleagues that he talked with
the President yesterday and was
assured that the White House
hoped the Senate would concur
In the House version.
Luncheon Delays Vote.
Senate action on the bill was
delayed for about two hours
early yesterday afternoon be-
cause % members of the Senate
Appropriations Committee were
lunching at the White House.
They were guests of the Presi-
dent for a discussion of foreign
aid funds.
When the debate was resumed
late in the day, a spirited discus
sion took place but it had none
of the spectacular features of
the House proceedings last week.
Senator Williams said it was "a
sad state of affairs" if the Sen
ate was afraid to amend the bill
because there might be later OBJ
lection in the House or if it
might be delayed or defeated
by one man." This apparently
was a reference to House Ways
and Means Committee Chair
man Reed who prevented House
action on the bill for many
weeks.
Senator Millikin urged con-
tinuance of the tax solely be-
cause of the condition of the
Federal budget. He declared
that the tax itself was full of
lnequities" but that it should
be continued to help in the
effort toward a balanced budget.
Warns of Opening Issue.
Senator George remarked that
hundreds of good amendments
could be made to this bill" but
he cautioned against changing
the measure under existing cir
cumstances.
If you adopt the Williams
amendment" he said, IT in good
conscience cannot withhold sew
eral other proposed amendments
to help many businesses which
are not corporations. If you
open up this bill to this amend
ment, you will be giving prefer
ential treatment to small busi-
ness corporations. There is no
doubt that they need relief, but
there is an even greater need
for helping many other taxpay-
erS."
Senator Sparkman of Alabama
was the principal Democrat who
urged adoption of the Williams
amendment. He declared that
he saw little likelihood that a
House fight would develop if the
bill were returned in amended
form. He explained that if any
House member objected to
sending the bill to conference,
1t could be cleared directly to
the House floor by the Rules
Committee and probably would
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