Evening star., 1953-07-12
Leaders in Senate
Plan Drive 10 Pass
Profits Tax Extension
washington, ID. G.
SUNDAY, JULY 12, 1858
By J. A. O'Leury

about an August / adjournment,
will make a drive this week to
pass without amendment the
HouSe-approved six-month ex-
tension of the excess profits tax.
Final House and Senate action
also is expected by Tuesday on
the $5.1 billion foreign aid au-
thorization. But this ceiling fig
ure on new spending authority
still faces the threat of further
reduction in the follow-up for
eign aid appropriation bill.
One other big fight facing the
Senate in the next two weeks is
the $5 billion Air Force cut in
the $34.4 billion defense money
bill. already approved by the
House.
One administration measure
that appears to be in trouble in
conference, after passing both
houses, is the one-year extern
sion of the Reciprocal Trade
Agreement Act. The conferees
had made no headway up to yes
terday toward settling their dis
pute over the size of the Tariff
Commission.
Pleased by Progress.
The House managers are hold
ing out for their provision adding
a seventh member to the COM
mission. The Senate eliminated
the additional place after Demo-
Gratis complained that it would
destroy the -partisanship
which has resulted from equal
party representation on the COM
mission.
Commenting on the adjourn
ment drive. Acting Senate Ma
jority Leader Knowland of CAL
1fornia, said yesterday progress
on the leadership program has
been better since July / than he
expected.
Cleaning up the appropriation
bills Is the No. task. Chairman
Taber of the House Appropria-
tions Committee said yesterday
he is confident it can be accom-
plished by August /.
Conferees VIII begin this week
ironing out their differences
over six appropriation bills that
have passed both houses. The
Senate still must pass the legis-
lative, Ditrict of Columbia and
defense money bill. The foreign
aid money bill still must go
through both houses.
Senator George of Georgia,
ranking Democrat on the tax
writing Finance Committee,
joined Chairman M.llikin yester-
day in favoring passage of the
excess profits bill without
change.
Seeks Higher Exemption.
Senator George said there are
some in the Senate who would
like to see a 100000 exemption
written into the measure, and
others who want excise taxes re-
duced. But the Georgian told a
reporter that if any change is
made I'VE will get begged down
in amendments"
Senator Mcclellan, Democrat,
of Arkansas, announced yester-
day that whenever a general tax
reduction bill comes along he
will make a fight to raise the
personal exemption of individ-
uals from 5000 to $3.50, and to
allow some special deduction to
working mothers who are the
principal supporters of their
children. It probably will be
next year, however, before he
gets a chance to { ffer his amend
ments.
Senator Mcclellan said he will
not offer his amendments to the
excess profits bill if it is con-
fined to that one issue when it
comes from the Finance Com
mittee. Raising the personal in
come tax exemption to $3.50
would cost the Treasury about
$2.5 billion, or three times the
revenue to be gained from ex-
tending the excess profits levy.
Quick Passage Seen.
The House is slated to con-
slider a separate bill this week
to repeal the 20 per cent admis-
sion tax on motion picture
theaters. But Senator Mcclellan
was not ready to say he would
offer his amendments to that bill,
either. He said his position is
that. when Congress decides to
reduce taxes generally, it can
give relief where it is most
needed by raising the personal
exemption.
Senate leaders will make
another effort tomorrow to get
the administrations immigra-
tion bill out of the Judiciary
Committee. Designed to admit
100000 special quota immi-
grants, chiefly refugees from be-
hind the Iron Curtain, it will
still face an uphill fight on the
Senate floor. 1t is also still on
the waiting list in the House.
Gruenther to Testify.
Before acting on the foreign
aid money bill, the Senate Ap-
preparations Committee is sche-
duled to get a f1rSt-hand report
on the progress of Western Eu-
ropes defenses this week from
Gen. Alfred M. Gruenther, the
new Supreme Commander of
NATO forces.
While waiting for the tax bill,
the Senate will act this week on
the international wheat agree
ment. and on the treaty to de-
fine the legal status of Ameri-
can troops overseas for offenses
committed while off duty. Ad-