The Key West citizen. [volume] (Key West, Fla.) 1879-current, 1953-03-19
Reed Doesn't Think COP
Leaders To Change On Tax
By CHARLES r. BARRETT

WASHINGTON IN - Rep. Reed
(R-NY) said today he expects
comments by President Eisenhow-
err to Stiffen Republican leaders
opposition to early House action on
his bill to cut personal income
taxes.
Reed, chairman of the tax-writ-
ing House Ways and Means Com
mittee, said it looks more and
more as though he win have to
resort to a rarely used special
privilege and force his proposal
to the floor over the objections of
House leaders.
In speech yesterday to group
of businessmen, Eisenhower said,
owe claim that unless we balance
the budget there will never be any
lowering of taxes" he added
that balancing the budget is ter
rifle problem.
Reeds bill would reduce indi-
vidual income tax rates about 10
per cent starting July I. Such a
reduction is now due at the end
of this year. The veteran New
Yorker has asked the House Rules
Committee to clear the bill to the
floor under a rule barring amend
ments. =
But the Rules Committee has
taken the line of Eisenhower and
House Speaker Joseph Martin (R-
Mass that spending should be cut
and a balanced budget should be
in sight before tax reductions are
considered.
AS chairman Of the Ways and
Means Committee, Reed has a spe-
cial privilege to bring his bill to
the floor any time, circumventing
the Rules Committee-but it would
be open to amendments. The House
additionally avoids an "open" tax
bill on the theory it would be
bracing pet tax projects of many
of the 435 members.
House parliamentary authorities
say they can recall only one case
81 years ago-when the process
threatened by Reed was employed.
On that occasion, some $50 to 200
amendments were offered, about
"a were adopted, and the bill tied
up the House for three weeks be-
fore ii was passed.
Reed has set April Is as a dead
line for House action on his bill.
He told an interviewer today he
may call it UP even before then.
The Senate has not considered the
bill, and indications are that it
will not unless the President gives
the word.
Asked about published reports
that House leaders may reach a
compromise with him on the issue,
Reed said:
81 doubt it very much. Sentiment
Of the leadership is dead against
bringing up the bill, but probably
80 per cent of the House members
are for it. The longer they wait,
the more the people viii be in
furiated.
"Tm going to carry out the tax
reduction pledge l made to the
people and / hope others who made
the same pledge will join me-"
He said he Is in hurry because
the bill must be enacted by May
/ to give relief on July to some
80 million persons on the payroll
tax Withholding list"
Reed said he has been told It
takes so days to prepared the nee
essary payroll Withholding forms
and distribute them to employers.
His bill would cut the withholding
rate from the present 20 per cent
to IS per cent.
As for Eisenhower comments,
the ways and means chairman
said they won't affect his position
but 81 presume the Presidents
statement win stiffen the opposi-
ton Of the House leadership"
Eisenhower told the business
group that reducing taxes before
the budget IS balanced actually
wouldn't benefit the public, be-
cause initiation caused by an I'M
balanced budget would wipe out
the advantages q the tax cut.
The Reed bill would chop an es-
| timated Ia billion dollars from
| federal revenue for the fiscal year
starting July l. Former President
Truman's budget had forecast rev.
enue at ests billion dollars next
@efE