Evening star., 1953-08-09

uIRSu CIldG IIlc cACc0S PIO11GS IdA
be continued from June 80 to
December 81, and that an II
per cent drop in individual in
come tax rates become operative
on that date as provided by Con-
gress three years ago. He prom
ised that neither Of those tax
provisions would be extended be-
yond December 81.
Some members of Congress re-
port a strong drive by some ad-
ministration officials to defer,
perhaps until 1855, the reduc-
tions due for next spring in the
corporation income tax and on
certain eXciSes.
Byrd Urges Delay.
So far as Senator Byrd is con-
cerned, this is long past the re-
porting stage. He believes all
automatic reductions should be
postponed for a year because
they would deprive the Treasury
of almost $7.9 billion in revenue
in 1855 and $8.3 billion in 1856.
Even the expiration of the cor
porate income and excise tax
provisions next April would cause
a revenue drop of more than 81
billion during the fiscal year be-
ginning next July /, he estimates.
To put it bluntly, Senator Byrd
contends that the budget for
the 1855 fiscal year cannot be
balanced without continuing
and raiSing-taXes.
Few if any other officials have
so openly advocated a boost in
taxes. This is especially true
in the House, where members
feel they are closer to the people
and where every member is al
ready uncomfortably close to the
November, 1854 elections.
Reed Still Set for Fight.
And in the forefront of this
tax legislative process stands
the Ways and Means Committee
and its formidable chairman,
Representative Reed, Republican.
of New York.
In the fight eventually won
last month by the Eisenhower
administration to extend the
excess profits. Mr.. Reed ex-
claimed that the levy would
have to be passed lover my dead
body" He still is hale and
hearty. He has served notice he
will resist even more vigorously
any attempt next year to pro-
long taxes due to expire or in
crease taxes, particularly income
taxes.
The aim of Congress and the
administration next year, in his
opinion, should be to reverse
the upward trend in taxation.
Equally important, in his view.
is the need for a revamping of
the tax structure. not merely to
plug loopholes but to set forth
an equitable, scientific and COM
prehenSive codification.
Hearings Near End.
The committee this week ex-
poets to conclude a long series
of open hearings on general tax
revision proposals in some 40
basic claSsificationS. The SeS-
sions did not go far into the
problem of individual and cor
porate income tax rates. They
touched on practically every
other type Of taxation. They
have produced suggestions from
several hundred witnesses from
all parts of the country. repre-
senting practically every sort of
business, professional, organi-
rational or individual activity.
One of the most controversial
proposals thus far has been for
a manufacturers sales tax. A
few committee members like the
idea. Mr.. Reed has not COM
mitted himself, but a big ma
jority of the committee has
indicated opposition.
Another study of tax policies
and programs is under way at
the Treasury at the direction of
Secretary Humphrey. This will
be the basis of whatever tax pro-
gram the President submits to
Congress next year.
Everybody Wants q Cut.
Both the House committee and
the Treasury experts repeatedly
have been deluged with recon-
mendationS for tax relief and
revision of one kind or another.
The proposals from business
groups and individual citizens
are insistent for removal or at
least leSSening of excise taxes on
almost everything from home
appliances to theater admissions.
Many requests also urge that
something be done about remov-
ing the capital gains tax. Here
again, there is some emphasis on
reform than sharp reduction.
There are complaints that excise