Evening star., 1953-11-24
Congress Won't Pass
Manufacturers Tax,
Martin Declares
Bv ]. A. OIeorv


peared today to have dealt a
death blow to a general manu-
facturerS' sales tax.
His prediction yesterday that
such a levy could not get
through Congress followed ear
lier indications that 95 per cent
of the Democrats in the House
also would oppose it,
The administration has never
said it would ask for a manu-
facturerS' 'sales tax, but Presi-
dent Eisenhower said recently he
has not ruled out that possibil-
ity. The Treasury is weighing
all possible new sources of reve-
nue..
Speaker Martin, just back
from a European tour, also told
a press conference the outlook
for world peace is growing
brighter.
Would Scale Down Excises.
Mr.. Martin not only ruled out
a manufacturers sales tax, but
suggested scaling down some
of the existing excise levies,
which represent limited form
of sales tax. The Speaker said
the 20 per cent rate now imposed
on some goods and services were
not established to raise revenue,
but to restrict essential
production during the war.
The Speaker said it is even
possible that these excise rates
could be cut in half without re-
ducing Treasury receipts, be-
cause the volume of sales would
go UP.
In discussing foreign affairs,
Mr.. Martin made these predic-
tionS:
The European Army Treaty
will become a reality next year,
with France, the key country,
likely to ratify it in March.
The United States will have
to continue a reduced amount
of military aid to its allies, but
can terminate economic aid ex-
cept in isolated cases.
There is a tremendous liking"
for the United States among the
plain people of Europe.
The best way to guarantee
peace is for the United States to
continue to strengthen the de-
fenSes of the free nations.
Looks to Next Session.
Looking toward the 1854 ses-
sion of Congress, the Speaker
offered these forecasts:
Taxes-CongresS is committed
to let the excess profits tax die,
and the 10 per cent cut in in
dividual income taxes take effect
January /.
He is awaiting further infor-
nation before deciding whether
Congress should cancel the in
crease in social security payroll
taxes, due to take effect January
/. Mr.. Martin said that last
year he favored poStponing these
increases on employers and en-
ployeS, but is now awaiting the
results of new revenue surveys.
He believes, however, the So
per cent normal rate on corpora
ton income could be extended
beyond April, when it is due to
drop to At per cent.
Budget-He hopes the Treas
ury will realize it's goal of cut
ting Federal spending next year
by SIS or Sc billion below the $72
billion spending figure for the
current year. AS to whether the
budget can be balanced in fiscal
year 1855, the Speaker has "his
fingers crossed" awaiting de-
tailed reports.
Taft-Hartley Labor Law
This may be a controversial
issue, but should be worked out
in committees before reaching
the floor.
The Speaker said he thinks
Investigations of Communist in
filtration into Government will
be a factor in next years con-
greSSional elections. He said he
hoped that within a year the
present administration can clean
out any Communists or fellow
travellers who may still be in
Government.
Mr.. Martin said he does not
think there is any difference
between President Eisenhower
and Chairman Leonard Hall of
the Republican National Com
mittee over whether communism
in Government should be an
issue in next years campaign.