Evening star. [volume] (Washington, D.C.) 1854-1972, 1953-03-19
The Political Mill
Pressure for Passage .
Of Tax Cut Bill Grows
Reed Considers Bringing
Plan to Floor Next Week
By Gould Lincoln

Wy 0O0tO kputSVtU
Pressure for the passage of the Reed
bill, which would result in tax reduc.
ton both for individuals and for BUSH
nesses, is becoming so strong that the
chairman of the House Ways and
Means Committee is seriously con-
sidering motion to bring the measure
before the House next week. Chairman
Reed, who has taken the lead in q
drive for tax reduction now, had orig
inally said he would seek action on his
bill after the expected Easter recess
running from about April 3 to April 10.
BY long distance telephone, by telegraph
and by mail, people all over the coun-
try are contracting Mr.. Reed, he says,
and asking that the Republican Con-
gress go ahead and carry out the
G. O. P. campaign pledge to reduce
taxes.
Chairman Reed is all the more anx-
1ous to obtain early action on his
bill-which was favorably reported to
the House by the Ways and Means
Committee by vote of 81 to 4-be-
cause 1t would, 1t Is estimated, take
so days for the Internal Revenue Blu.
reau to get new forms distributed, re-.
ducing the withholding tax which af-
fects the great mass of income tax
payers. What he fears is that if the tax
reduction bill should become law late
in the year, the tax will have been
already withheld from the EMPLOYEES
pay-and If the employees are to re-
ceive the benefit Of the proposed tax
reduction, they would have to wait for
refunds from the Federal Treasury.
No Extension.
The Reed bill does not extend the
excess profits tax on corporations.
which is due to expire next June 80.
This is where business will benefit. The
bill provides affirmatively for the ex-
piration of the II per cent-across-the-
board tax increase on individual in
comes, carried in the present law, on
the same date, June 80. This increased
tax is due to die December 81. The Reed
bill, therefore. gives the individual in
come tax payers, big and little, six
months relief from this special tax.
The Republican leadership of the
House has sought to delay and hold
back any tax reduction until a bal
anced budget is in sight. Chairman
4VSOA 4SOAoS 4IOWCVC1, Ok1dV uC IUuSL 20
forward, as head of the committee in
which tax legislation originates, with
early tax reduction. It is his contention.
TOO. that If the Government knows its
revenues are to be cut, it will perforce
reduce its spending plans. The urge.
ne contends, Is always for the execu-
tive departments and agencies to de-
mand and to use all of the revenue
in sight. and then more.
The Ways and Means chairman has
other legislation before his committee
the customs Simplification bill and
the reciprocal trade agreements ex-.
tension BILL The Trade Agreements
Act Is slated to expire June IL, unless
Congress acts In the interval. The
Republican leaders have no. intention
OF letting the law die, although they
are contemplating some changes in it.
Mr.. Reed calls it Tightening up" the
law. AS it now stands it contains the
s9-called peril point" provision, which
Congress forced into the measure over
Truman opposition. This provision
will be continued in the bill extending
the life OF the law. Under it the
United States Tariff Commission must
report when an American industry is
threatened because of low tariff duties
provided in tariff agreements between
the United States and foreign countries.
Continuance Urged.
In some Republican quarters, a sug-
gestion has been made that, the pres
ent Reciprocal Trade Agreements Act
be continued without change for one
year-with a proviso that a thorough
study be made Of the whole framework
OF tariff duties. and agreements with
other nations. After the study has
been completed, it is argued, Congress
will be in better position to enact legis.
lation on the subject. President Eisen-
hover has indicated he has no desire
to see trade barriers erected which will
minimize foreign trade.
Chairman Reed is confident that his
tax reduction bill will pass the House
by substantial vote, If it is taken UP.
The clamor in some quarters for much
heavier expenditures for national de-
tense, coupled with assertions that the
country is not in position to defend
itself, has confused the thinking of
some members of Congress. They are
not sure whether this is an effort, such
as made in other years, to get in.
creased appropriations by throwing q
scare into the American people. On
the other hand, they dare not take a
chance on the safety Of the people.