Evening star., 1953-09-06
BY Robert K. WoIsh

Capitol and Treasury tax ex-
perts. working on different bills
for introduction as soon as Con-
gress reconvenes, hope to avoid
a collision between a White
House drive to raise revenue and
a House committee move to "cor-
rect the tax structure.
They emphasized yesterday
that current studies are CO.
operative, with no threat of
major conflict. But they fear
delays or perhaps more de-
structlve trouble ahead if signals
are crossed or diSregarded.
A broad tax program to be
submitted by the Eisenhower ad-
ministration early in January
will aim at getting revenue to
help balance the budget if pos
sible in the fiscal year starting
next July.
Reed Seeks Big Changes.
A major bill to be put in by
Ways and Means Committee
Chairman Reed on the first day
of the next session will aim at
a comprehensive revision of the
tax laws.
It will seek especially to re-
move inequalities, confusion and
antique provisions and pro-
cedures in the income tax Sys-
tenn. 1t will contain "substan-
tial' changes that could cut
some tax revenues, the experts
indicated.
Still another key tax measure
is shaping up for congressional
consideration early in the COM
ing session. This repeatedly will
deal entirely with excise taxes,
but not bring an overall in
crease in lowering some and
raising others. It is likely to be
offered by Mr.: Reed or some
other member of the committee
as a result of several weeks OF
hearings from last June to Au-
gust on general tax proposals.
Mr.. Reeds announcement that
the revision and recodif1cation
bill is slated to be the first
order of business" in January
raised a question whether the
administrations bill would have
to wait it's turn in the committee.
Committee May Revise Bill.
The bill being drafted for Mr..
Reed will represent the general
attitude of the committee follow
ing the lengthy hearings. But
it will be subject to further dis
cussion and final approval by
the committee after being
formally filed in January.
The committee as a whole
made only two tentative de-
cisions after the hearings. It
plans no more meetings until
January. Most members are
away from Washington and
have not kept in close touch
with specific provisions being
prepared for the Reed bill.
Committee sources said the
revision bill will make no huge
reductions in revenue and that
every change will give due con-
sideration to the Governments
general revenue picture and
budget-balancing problems. The
Treasury is being consulted and
kept informed all along the
line. they added.
Mr.. Reed, however, is known
to hold to the theory that income
taxes on individuals and corpora
tions can be safely lowered to
some extent and in any event
should not be increased. He also
has served notice that the
revision bill will try to end
"harsh and inequitable tax pro-
visions which are forcing buSi-
neSseS to shut down."
Child'S Exemption Sought.
The principal change dis
closed thus far would allow chill
dren to earn more than 5000 a
year without affecting the de-
pendency credit their parents
could claim.
More significant at this time
are some of the things the Reed
bill repeatedly will not provide.
Because the full committee has
taken no stand on the matter as
yet, the bill will not include any
compromise on continuance Of
corporation income tax rates
due to drop next April from So
to At per cent.
Representative Simpson, Re-
publican. of Pennsylvania, a
committee member, said last