Evening star., 1953-01-27
II Pct. Income Tax Reduction
Will Be Voted BY House Before
March, Committee Head Says
Other Republicans
Fear Immediate
Cut Is Impossible
By the Assoeiotsd Press


Chairman Reed said today the
House Ways and Means Com
mittee definitely" will approve
on February 16 a bill cutting in
come take rates by II per cent
starting June 80.
And Mr.. Reed told reporters,
after a closed meeting of his
group. "the House will pass the
bill right away-before the end
of February"
Asked about reports that
House leaders want to postpone
action on his tax bill until May
or June, Mr.. Reed replied: lover
my dead body"
He added that prospects for
early passage are perfect"
Mr.. Reed plans no hearings on
the bill, which would give the
public it's first reduction in taxes
since four increases over the
past three years.
Plans to Bar Amendments.
He indicated he also planned
to follow strategy which would
bar any amendments from the
House floor.
Mr.. Reed said he has not
consulted with The Eisenhower
administration OF House leaders
on his drive for early passage.
"It isn't necessary" he said.
Indications were, however, that
Treasury representatives would
be invited to discuss the tax
cutting bill before the commit
tee on February 16, If not be-
fore.
The committee originates all
tax bills in Congress. An influ-
entail Democratic member, Rep
resentative Mills of Arkansas,
agreed that it would approve Mr..
Reeds proposal on February 16.
Congressional staff specialists
have estimated the II per cent
drop in income tax rates would
chop revenue by SO billion over
q full year.
Mr.. Reed said staff specialists
estimate the revenue loss at $l,0
billion for the fiscal year start4
ing July i. His personal eSti-
mate, he added, is nearer $1.2
billion.
"And actually" the veteran
New Yorker said, there won't be
any loss in total revenue. The
money the people gain in re-
duced income taxes will be spent
on goods and boost the tax base
on excise (sales) taxes, and all
around"
Other Leaders Opposed.
Other Republican leaders-In
Congress and in the Eisenhower
administration - have advised
against tax cuts before they see
what can be done to reduce Fed
eral spending and balance the
budget.
Secretary Of the Treasury
Humphrey has said he fears
prospects are dim for imme-
date tax cuts.
Former President Truman's
budget-which may be revised
by Gen. observation-disclosures
Federal spending of $78 billion
next fiscal year. starting July /.
Mr.. Truman predicted revenue,
under present laws, at $68.7 bill
hon-leaving a deficit of almost
$40 billion.
Present laws provide for the
IL per cent cut in income tax
rates to go into effect next jan
uary l. Thus Mr.. Reeds bill
would advance the date by six
months. For calendar 1853, the
cut would be 515 per cent.
Many Seek to Defer Action.
Some committee members, in
cluding some Republicans, are
known to prefer to hold hear
ings on Mr.. Reeds bill and take
final action on it several months
later.
Mr.. Reed, however, was en-
phatic in saying the committee
will approve the bill and send
it to the House at meeting to
be held February 16.
A tax bill may be called to
the floor on any legislative day
by the Ways and Means chair
man without approval of the
House Rules Committee. In that
situation, though, the bill would
be open to amendments and Mr..
Reed is opposed to that.