Evening star., 1953-06-15
Martin Hints
Bypass Action
On Tax Bill
Thinks Extension
Of Profits Levy
Will Pass House

left open the possibility that
House leaders might try to by
pass the Ways and Means Com
mittee in an effort to get action
on the administration bill to
continue the excess profits tax
for six months beyond June 30.
The committee has completed
hearings on the extension pro-
posal, but committee Chairman
Reed-a vigorous opponent Of
the measure-has announced no
plans to put the bill to a COM
mittee vote. Mr.. Reed said to-
day that if taxes are not cut this
year. Democrats will win control
of Congress in 1854.
Mr.. Martin discussed tax pros
poets with reporters today after
G. o. P. congressional leaders
held their weekly conference
with President Eisenhower.
Mr.. Martin was asked if there
was any discussion of bypassing
the committee on the excess
profits bill.
Puts Trade Bill First.
He responded that no thought
had been given to that yet but
that after the passage of the
Reciprocal Trade Bill the leaders
might have to explore it.
"One thing at a time" he said.
When a reporter pointed out
that this was the first time it
had been indicated any steps
might be taken to bypass the
committee, Mr.. Martin laughed
and said that he was only say
ing something to make conver-
Sation.
II think We'll get it out; I
think we'll pass it," he said.
Taking direct issue with Pres
ident Eisenhower, Mr.. Reed said
a promise to cut taxes Twas one
of the main pledges made dur
ing the campaign" by G. o. P.
Members Of Congress land the
President. too" Gen. Eisenhow-
er has said he never promised
to reduce taxes right away.
you'd be surprised the way
the people resent the failure to
keep that pledge" MIR. Reed
said in an interview published
today by the magazine U. S.
News and World Report. IF
the people don't get this tax re-
duction now. you will have q
Democratic Congress next time"
Balks on 2 Points.
Mr.. Reed, in a position as
chairman Of the House Ways
and Means Committee to influ-
ence taxes more than any other
man in Congress, has been balk-
ing at two major provisions Of
Gen. Eisenhower's tax program:
l. A request that the excess
profits tax on business. due to
expire at the end of this month,
be extended for six months to
bring in an estimated $500 mill
lion toward balancing the budget.
Mr.. Reed wants the tax to expire
on schedule.
2. A request that a 10 per cent
tax cut in individual income
taxes be permitted to take effect
January 1, as scheduled under
present law. Mr.. Reed wants to
advance it to July J..
House Speaker Martin said
over the week end he knows u
majority Of the Is Republicans
on Mr.. Reeds committee ARE
ready to bring to the House
floor" an extension Of the excess
profits tax. But Mr.. Reed said
that except for possibly three
members" the Republicans on
his group want the tax to expire.
Sees House Opposition.
He took issue also with Mr..
Martins prediction that If the
extension gets to the House floor.
it will be approved.
The committee will start to-
morrow on an extensive series
of hearings on wholesale re-
vision of the tax laws. One Of,
the first subjects it will consider
is whether to allow working
mothers to deduct, for income
tax purposes. the cost Of hiring
someone to care for their chill
dren. Mr.. Reed said he believed
there should be such provision.
He said he will continue to
press for tax cuts because (A)
A Korean truce should re-
duce Government expenses. (B)
There are a good many eco
nomic danger signal flags"
which point to the possibility Of
a depression, and (C) IF we
would get rid of the excess
profits tax and give the individ-
ual taxpayer break, we would