Evening star., 1953-02-17
President Sees
Risk in Income
Tax Slash Now
Bors Ending Levy
On Profits Without
Other Revenue

EIeSlueIlC EISENHOWER declared
anew today there should be no
decrease in taxes until it can be
seen plainly that the factors Of
Government income and outgo
can be balanced. a.
He declined. however, to say he
would veto tax-cut legislation
Congress might pass.
The President made clear at
a news conference that he was
not uuarreling with members Of
the House Ways and Means
Committee who have voted out
a tax cut bill.
He also stressed he would not
agree to termination of the ex-
cess profits tax on June 80 un-
less other revenue is provided to
offset the loss.
The excess profits tax is to
die automatically June 80 and
the II per cent extra defense
income tax on December 81. The
bill reported out by the House
Ways and Means Committee yes
terday would end the extra in.
come tax June 30.
Has Promised No Cut.
The President, volunteering to
discuss taxes, said he personally
has never promised tax reduc.
tion-despite press reports to the
contrary.
He seemingly referred to Q
story early in the campaign
which pictured Gen. Eisenhower
as looking toward multi billion
dollar tax and spending reduce
tions.
The President said today that
tax reduction Is absolutely es-
sential. but it must be effected
in what he called its proper
order. He said that until the
huge Government deficit is elimi-
mated there Is no hope Of keep
ing our money stable and that
this instability cheapens the doll
lar, boosts Government expenses
and creates an inflationary sit.
uation to which there is no end.
Stressing anew that balanced
budget must be in prospect be.
fore anything can be done in
the way Of tax relief, the Presi-
dent said he was applauding
those people in Congress who are
keeping their eyes on the need
for lower taxes.
Can't Predict Veto Course.
I Asked If he would veto tax.
cut bill, the President said there
is no such thing as an item
veto On appropriation bills and
he did not know in what form
tax reduction legislation might
be presented to him, and conse.
quently couldn't predict his ac-
ton.
The President said in response
to another question that he nev-
er would agree to elimination Of
the excess profits tax unless
there was some substitute.
Gen. Eisenhower said there is
a prospective $50 billion deficit
for this year. The budget sent
to Congress by President Tru-
man for the next fiscal year
would entail a 500 billion deficit,
Gen. Eisenhower said. He added
that efforts are being made to
reduce this.
Chairman Allen of the House
Rules Committee said,. mean
while, that he will pigeonhole
the Reed bill until a balanced
budget is in sight.
According to G. o. p. leader
likewise determined to delay tax
cutting until Federal spending is
greatly reduced. Mr.. Reed might
encounter difficulty in calling up
the bill on the floor. AS privi-
legged bill. it could be called up
at any time for floor action on q
motion Of the Ways and Means
Committee chairman. Under
that procedure, it would be at
the mercy Of all manner Of
amendment and attack.
"Of course" the G. O. p. lead
er remarked, "if Mr.. Reed wants
to call up the bill in the House,
he will have to be recognized by
Speaker Martin"
Martin Also Opposed.
Mr.. Martin, as well as Repub-
lcan Floor Leader Halleck, have
said they feel the same as Mr..
Allen does about early easing Of
the tax burden.
Mr.. Reed contented himself
yesterday with commenting that
(See TAXES, Page A-5.)
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