Evening star., 1953-07-15
Profits Tax Comes Up
For Debate in Senate;
Quick Passage Seen
BY th. A..oeios.d pr...

The House-passed bill to ex-
tend the excess profits tax for
six MONTHS major item in
President Eisenhower's 1853
legislative program-comes UP
for Senate debate today.
Leaders in both parties were
supporting the bill and conf
dent Of passage.
Senator Millikin. Republican,
of Colorado. floor manager for
the measure, said beforehand he
expected a number Of amend
mentS to be offered. "All the
storms will be weathered," he
predicted.
Acting G. o. p. Leader Knowl-
and of California said the bill
would have right of way until
final action.
May Be Passed Today.
There was a chance 1t would
be passed and on the way to
Gen. Eisenhower's desk by to-
night-giving him q triumph in
the fight that so far has raised
the thorniest problems faced by
his administration on Capitol
Hill.
But nearly all of the trouble
came in the House where dough-
ty Representative Reed, Repub-
lican, of New York, a bitter foe
of the excess profits levy, kept
the extension measure stalled in
his Ways and Means Commit
tee for many weeks.
In contrast, the Senate has
acted with great speed. The
House passed the bill last Fri
day; Senator Millikin called his
Finance Committee together yes
terday and the measure was ap-
proved at that session, with no
hearings.
However, it is open to amend
ments on the Senate floor
which was not the case in the
House-and a White House de.
velopment yesterday gave con.
Germ on this score to the bills
managers.
Other Changes Feared.
Senator Bridges, Republican,
of New York left a meeting Of
legislative leaders with the Presi-
dent and told newsmen Gen.
Eisenhower was willing to 20
along with some increase in the
exemptions to except more small
companies from the tax.
Some hackers of the bill said
privately they feared this might
open up flood of amendments
on the Senate floor.
Senator Millikin's strategy has
been to steer the measure
through without any change in
the House version. This would
avoid a conference with the
House at which Mr.. Reed would
be the top negotiator for that
branch.
In this, the Finance Commit
tee chairman has had firm back
ing from veteran Senator George
of Georgia, the senior Democrat
of the group.
Both Senators have obtained
pledges from a number of COL
leagues not to offer amendments
on pet tax ideas unless some
other amendment is adopted.
Senator Williams, Republican,
of Delaware. told reporters he
would propose to increase the
exemptions so that companies
with a net income of 100000 or
less would not have to pay the
excess profits levy for the six
months extension period.
Amendment Beaten.
He offered this amendment in
the Finance Committee yesterday
but it was beaten. It would cost
an estimated $32 million in reve-
nue. Of the extra $500 million
which the extension is estimated
to yield.
Under present law. firms with
net income of up to $25.000 are
exempt.
Senator Williams said he wss
not trying to beat the extension
by forcing it back into a confer
ence with the House.
II will support the bill whether
my amendment is adopted or
not" he said. II believe the
Government should have this
revenue. But if we really want
to help small business. the way to
do it is to adopt my amendment"