Evening star., 1953-02-12
The Political Min
WelI-BIed Toxpoyers
Pin Hopes on Reed Bill
House Likely to Approve Plan
To End Special Levy July !
The Political Mill
By Gould Lincoln

The American taxpayers are due for
a shot Of hope in the arm. The House
Ways and Means Committee, when It
meets Monday, is expected to report out
the Reed bill which calls for the elimi-
nation. as Of July l, Of the II per cent
acroSS-the board special income tax
which was not due to expire until De-
cember 81. The present excess profits
tax on corporations expires also July !.
The expected committee action-which
undoubtedly will be followed by favor
able action in the House itself-repre-
sents a victory for Chairman Daniel A.
Reed, Republican, of New York. Mr..
Reed has insisted since the opening day
OF this session Of Congress that the Re-
publicans should make good on their
campaign promise to reduce taxes.
President Eisenhowers advisers
recommended that the Republican,
controlled Congress make drastic cuts
IN the Federal budget and Federal
spending before any tax reduction was
attempted. Speaker Martin of the
House was willing to go along. Mr..
Reed, however, refused to bulge from
his position. It became evident that
members Of his committee would stand
with him, no matter what the position
OF the White House.
Aims Are the Same.
The controversy. however, boils down
to the approach to ends which the ad.
m1nlstration and Mr.. Reed both desire.
Ihese are reduction of Federal spend
ing, reduction Of taxes and a balanced
oudget. Mr.. Reed has argued that a
reduction OF taxes-or rather legislation
Tor tax reduction-need not wait on
congress action on the appropriation
Dllls, where cuts in spending must come.
4noeeo, ne contended, legislation which
would reduce revenue would have a
salutary effect on Congress; it would.
he said. compel Congress to reduce ap-
preparations and expenditures. IL IL
hoped ever to balance the budget. The
administrations position was that the
AK snouio nrst be used on the appropri-
ationS.
one great advantage lies with the
Eeeo approach. If recent legislative
history means anything, completion of
the appropriation bills will not take
place until June or later, perhaps july
or August. With Congress anxious tn
conclude its labors by July, tax lepis-
latlon would be in q sorry position r.
might even have to go over until the
following seSSion-with no tax relief
this year for the individual taxpavers
Under the Constitution, revenue bills
must originate in the House. If the
house now proceeds to put through the
reed Dill, 1t must go to the Senate for
consideration and action-and perhaps
amendment. The Senate NAV act
qulckly-or 1t may take weeks of dis.
cuSSlon on an important measure. The
senate finance Committee will have
the nrSt crack at a revenue bill, COM
ing over from the House. It will be
IN position to have look at the ap-
preparation bills-and to judge whether
adequate reductions are being made to
warrant the proposed tax cuts.
Administration Is Wise.
The administration has been wise
IL would have been foolish to insist on
showdown fight with House Republi-
cans, led by Mr.. Reed, on the present
consideration of this tax reduction bill.
Particularly is this true when so clearly
ooth the administration and Mr.. Reed
are aiming for the same thing-a ball
anced budget. The tax laws need an
overhauling, generally. This tax pro-
posal OF Mr.. Reed may be regarded al
only beginning. 1t will, however. be
taKen Dy the people as an earnest in
d1cation that the Republicans will live
up to campaign pledges. The 8Oth
Congress, 1t will be recalled, the last
Republican Congress, cut taxes and
also balanced the budget.
In some quarters, the determination
OF the House Republicans to go ahead
with the Reed bill will be characterized
as defeat" for the Eisenhower lead
ership. as slap for the new President,
In others, however, it will be regarded
as a real exhibition of the determine
ton Of the Republicans, through con-
sultation, to Cooperate Certainly that
appears to be the result. And in this
case. the result would be to give so mil
lion taxpayers some relief from the
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