The Key West citizen. [volume] (Key West, Fla.) 1879-current, 1953-05-21
OPTIMISM EXPRESSED FOR
APPROVAL OF EXTENSION
OF EXCESS PROFITS TAX
Br cllARL Es q. BARRETT

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Leader Halleck Of Indiana said to-
day he was livery optimistic
about chances for House approval
Of President EisenhoWer's request
to extend the excess profits tax On
business.
But Republican opponents Of the
measure disclosed 4 series Of STRAIT
egg moves aimed at defeating the
proposal or at least amending it.
These were Developments after
q full day Of backstage maneuver-
/ ing yesterday on an issue that has
developed into one 81 the sternest
tests SO far Of EisenhoWer's lead
ership with Congress.
At q conference With HaIleck and
House Speaker Joseph Martin lR-
Massl, Republican members Of the
House Ways and Means Commit
tee agreed to hold hearings June
lilo on Eisenhower,s request.
This request, sent formally to-
Congress yesterday after being
outlined in the Presidents radio
talk Tuesday nigh, exhorts Con-
gress to cut no taxes this year.
Eisenhower said he wants lower
taxes as much as anybody but be
said that would be inflati0nary.
He raked The Truman admins
tration for leaving what he called
"a critically MnsOund state Of iii
nanciaI affairs proposing this
six point tax program extend the
excess profits tax six months past
! its June 80 expiration date; don't
cut corporation income taxes per
cent, as scheduled on April j;
postpone the One-haif per cent IN
crease scheduled Jan. III social
security taxes don't cut excise
taxes on April !, 50 scheduled:
don't cut income taxes for indi.
viduaIs until Jan. I, then allow i
| 10 per cent cut already scheduled;
60 easy on al tax matters until
Secretary III the Treasury Hums
Iphrey details the Administrations
| program ~ the end Of the year. z
ALL President George Meany
yesterday distributed a statement
Saying the big uniors Executive
Council opposes EisenhoWer's call
! for pOstponement Of the social se-
curity tax boost. The statement
praised, however, the Presidents
proposal ID torego any tax cuts
/ this year.
The House Ways and Means
Committees decision to hold hear
| ings on Eisenh0wers request was
q victory fer the administration.
Chairman Daniel A. Reed Or NY J
has been adamant ii insisting on
TAX cuts, and some Republicans
had doubted whether Eisenh0werss
plan would ever Be brought before
The committee.
Further the administration
made aads "a previously
had been Solid lineup o. al Is
committee Republicans against
any extension oE the excess profits
tax, now bringing il estimated &
10 2lz billion dollars 4 year.
Several who attended he cons
ference said Il WAS clear same
Republican committee members
have switched over and win sup
port the President.
Estimates On just how many
switched ranged from three to six
and more. Republican leaders OBJ
viOusly counted on heavy support
from The 10 Democrats On the
committee q help put the proposal
over.
The committee apparently holds
the key. Leaders generally agreed
the bin would clear the House and
Senate floors But al TAR bills
normally must start ii The Ways
and means group.
NUNS e&4A.t tttk& = = - - ~ 9 y - =
Allen R.Illl said he wouldn't
consider various proposals 70
route I'D excess profits tax exten-
sion BIN nom his group ID the
floor. bypassillk Tie ways and
mems committee
Democrats, who appe aired b hold
the balance az power between on
posing Republican factions were
generally silent although most
Democrats were expected q vote
for the proposal.
Opponents were hy ~ means
ready 10 how down. One leading
Republican said their strategy
called lor close questioning 81 adj
ministration Witnesses during The
hearings. II try IA show That the
tax penalixes new, small q grow
ing businesses.
on both sides, there was talk
AZ various provisions III provide
relief sr0m the tar for hardship
eases. HaIlerk would not rule cut
the prospect That reliei provisions
wouid he included d the bil.
d