Evening star., 1953-01-11
House Unit Expects
To Start Tax-Cuttinq
Study This Week
BY Robert K. Walsh


that tax cuts wait for budget
reductions, the House Ways and
Means Committee expects to
start work this week on scores
of bills aimed at tightening the
taxpayers load.
The 25-member committee.
planning to organize with IS
Republicans and 10 Democrats.
already have received almost
$50 measures. Most of them
would lower, eliminate or other
wise affect levies on personal
incomes or excise taxes on such
varied things as theater admis-
sions, transportation, jewelry and
furs. and tobacco.
Committee officials make no
predictions and set no timetable
concerning bills that may event.
ually be approved for House ac-
ton. But Chairman Reed insist
ed that there's going to be a
tax cut" The New York Re-
publican conceded that this
would depend largely on whether
Federal spending is reduced. He
predicted that there's going to
be a balanced budget"
See $40 Billion Trim.
President Truman, in submit
ting a proposed $78.6 billion
budget for the fiscal year begin,
ming July /, urged last Friday
that ther be no tax reduction at
this time. He estimated that
revenues for the next fiscal
period would be only about $685.
billion.
Mr.. Reed and some other
House Republicans believe $40
billion can be Topped off of the
Truman budget. Senator Taft
of Ohio, Senate Republican lead
er. said spending should be held
down to about $40 billion and
that 1854 fiscal year revenues
probably would be at least 81
billion more than estimated by
President Truman.
Here are some of the tax
measures awaiting study.
A proposal by Mr.. Reed that
June 80 instead of December 81
be the expiration date for an
II per cent increase, enacted in
1851. in income tax rates. This
would enable taxpayers. es-
pecially in the lower and middle
brackets, to save about 5l2 per
cent for the 1858 calendar year
Fight Excise Taxes.
Bulky bills by Representative
Dingell of Michigan, second
ranking Democrat on the COM
mittee. to end excise taxes on
motion picture theater admis-
sions, and repeal or reduce war
tax rates or current excises on
club dues. toilet preparations,
furs. jewelry, electric light bulbs,
telephone and telegraph mes-
sages, transportation Of per-
sons. luggage and handbags, and
a variety of other products. The
bills also would lower some Of
the taxes on playing cards.
night clubs. corporate securities,
bowling alleys, automobile tires,
tobacco and distilled spirits.
Bills by several members, Re-
publicanS as well as Democrats,
to increase to 81 900 the personal
income tax exemption. and the
deduction for dependents.
Proposals to allow income tax
deductions for life or annuity in
surance premium payments; for
expenses of farmers in soil and
water conservation; for the care
of children while a widow or
widower is employed; for educa-
ton for dependents under some
circumstances: for annuities un-
der the Civil Service Retirement
Act. and for subscription charges
in certain prepayment health
service programs.
Boost Personal Exemptions.
A bill specifying that the per-
sonal exemption, be $500 for
single persons without a separate
household. $3.50 for a single per-
son maintaining a separate
household, and 81 200 for q mar
ried person or an otherwise desig-
mated head of family.
A suggestion that the Govern
ment waive the tax on insome
from Series E defense bonds.
Several bills to amend the So
cial Security Act by increasing
the size of monthly or annual
earnings which a person could
receive and still be eligible for
benefit payments.
Bills to exempt Government
employees from income taxes on
their Federal pay and pensions,
or eXempting amounts up to
$4,000 from pensions and annui-
ties of former Federal. State or
local employees.
Other Resolutions.
There are pending resolutions
that the revenue laws be admin
istered and taxes collected by
an independent agency; that a
special commission study sources
and distribution Of revenue in