Evening star., 1953-01-04
Congress Organizes Promptly
As Senate Delays Rules Fight;
Tax Reduction Bills Flood House
Other Measures
Seek Economy
In U. S. Spending

key Republican members measure
for an II per cent annual cut
starting June 30 in levies on lower
and middle income groups, poured
into the House yesterday.
Most of them. however, were
tied in closely with demands for
lower Government expenditures.
Main attention centered on a
bill and statement by Repre-
sentative Reed, Republican, of
New York. who will head the
Ways and Means Committee which
handles tax legislation.
The effect of his bill would be
to put an income tax reduction
into effect June 80 instead of
next December 81. On that date
an income tax increase voted to
finance the Korean war expires.
Bill Allows 51a Pct. in '53::
Mr.. Reed said his bill would
enable lower and middle income
groups during this calendar year
to benefit from a maximum of 512
per cent reduction beginning June
30. On the basis of a full year
thereafter, the cut would amount
to about II per cent.
Mr.. Reed estimated that the
suggested tax cut would reduce
Federal income by about $1.8 bill
lion during the fiscal year starting
July /.
1--WE can have the tax relief
provided in my bill and also
achieve our major goal of a
balanced budget for fiscal 1854"
he said in a prepared statement.
The issue therefore is whether
we are prepared to reduce ex-
penditures by only $1.8 billion
more than We are committed to do
in order to bring Our expendi-
lures into balance with estimated
receipts"
Relief Called Essential.
Declaring that thousands of
small taxpayers have placed their
trust in the Republican Party" !"
Mr.. Reed said that some degree Of
early relief is essential. He main
tanned that the present high in
dividual income tax rates "are
preventing all segments of our
people from realizing a higher
standard of living"
He emphasized that his bill
would bring relief where most
needed, in the middle and lower
brackets. He estimated that the
cut for taxpayers in the highest
brackets June 80 would approx
mate .one-half of one per cent.
Mr.. Reed also suggested that the
excess profits tax be allowed to
die June 80, the expiration date
in the act. This levy on corpora
tions brings in approximately
$2.5 billion year. Mr.. Reed
said he believes individuals also
should have the benefit OF a tax
cut beginning June 80.
Budget Due Friday.
President Truman's proposed
budget, scheduled to reach Con-
gress Friday, was expected to call
for expenditures in the neighbor-
hood of $50 billion. Recent un-
official reports have indicated it
might ask somewhat less. Gov
.ernment revenues for the coming
fiscal year are expected to be
about 500 billion.
A ranking Democratic member
of the Ways and Means Commit
tee put in bill yesterday to re-
peal the 20 per cent excise tax on
amusements, especially motion
picture theaters. Representative
Dingell, Democrat, of Michigan.
said his bill was necessary to rem
edy the devastation" brought on
the motion picture industry be-
cause of the whitening" effects
of such excise levies.
Representative Clardy, Repub-
lican, of Michigan, sponsored a
bill to increase the personal in
come tax exemption from $500 to
$1,000. He introduced the bill
shortly after he was sworn in as
a new member.
Representative Simpson. Re-
publican, of Pennsylvania, Ways
and Means Committee member,
offered a bill to grant relief to
business firms suffering hardships
under the excess profits law. The
principal purpose of the bill is
to specify standards under which
any firm could seek relief if it feels
it is being unduly penalized by the
itax.
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