Evening star., 1953-02-11
Treasury Chiefs
ReconciIed 10
Tax Cut Action
COP. House Group
Wins Tocit Approval
At Informal Dinner
By the Associofed Press

ton evidently has accepted DO
litely a decision by Republicans
on the House Ways and Means
Committee to vote for early ac-
ton to reduce income taxes.
Informed sources said today
that Treasury officials made ii
clear to committee members, at
a private dinner meeting last
night. that right now they will
neither support nor oppose a
tax cutting drive led by Repre-
sentative Reed, Republican, OF
New York.
Earlier yesterday, at a caucus
G. o. P. members of the COM
mittee were reliably reported to
have decided to vote next Mon
day in favor of Chairman Reed s
bill to reduce individual income
tax rates 10 per cent, starting
June 80
Persons who attended last
nights dinner, asking not to be
named. said Treasury officials
suggested they would have liked
the committee to delay action
until Treasury specialists have
more time to survey prospects
for Federal revenue and spend
ing.
Accepted as 'Fact of Life"
Administration spokesmen were
said to have accepted the COM
mittee members decision as "one
of the facts of life" The meet
ing was said to have been pleas
ant and harmonious.
Gen. Eisenhower and the
Treasury have called for spend
ing cuts and a near-balanced
budget before taxes are cut.
Administration spokesmen,
however, were said to have told
the G. o. P. committee members
last night that they are just as
anxious as Congressman to cut
taxes. The only conflict, these
sources said, was over timing of
action on the Reed bill.
The administration was said
to be hoping the House Rules
Committee will stall the proposal
for about two months. Whether
Mr.. Reed and some other COM
mittee members would agree not
to fght against such a delay
remained to be seen.
Would Affect 50 Million.
Mr.. Reeds bill would give
some so million taxpayers an
average 10 per cent cut in in
come tax rates. starting June 80.
Payroll withholding taxes would
drop from the present 20 per
cent to Is per cent.
Such cut Is scheduled De-
cember 81 under present laws.
Congressional staff specialists
estimate advancing the reduction
by six months would cost $l.8
billion in revenue for the fiscal
year starting July /.
The Eisenhower administra- l.
ton is said to feel this loss in
revenue would make it very diff
f1cult. if not impossible, for the
new President to balance his
first full fiscal budget-a prime
goal of the President.
Mr.. Reed has insisted the
budget can be balanced under
his bill.
Committee approval of the
Reed bill Monday could make
it eligible for House floor action
Immediately. House rules per-
NIT the Ways and Means Com
mittee to bypass the Rules Com
mlttee. with some conditions.
Approval Appears Certain.
informed Republicans said
G. 0. P. Ways and Means men,
bers were called together yes
terday to see If they wanted to
back Mr.. Reeds call for COM
mittee approval Monday, in the
light of administration views.
"They did," one committee
member reported. Others agreed
that barring shifts of opinion or
new developments, the Reed bill
appeared ready to sail through
the committee.
The bill has picked up sub
stantial support from Demo-
Gratis. too. The Ways and Means
Committee has Is Republicans,
10 Democrats.