Evening star. [volume] (Washington, D.C.) 1854-1972, 1954-06-28
BY the Asseeiatsd Press

A three-way split among Sen
ate Democrats over the big tax
revision bill appeared likely to-
day to give President Eisenhower
a clear-cut victory on the meas
ure-one Of the biggest items on
his 1854 program.
Floor debate opens in the Sen
ate today with the leaders hope
full Of pushing the huge measure
drought by Friday night. The
House has approved the bill.
which would not change major
levies but would cut taxes STA
million in its first year of opera
ton.
Majority Leader Knowland has
announced extra-long sessions
for the week. He is holding out
the promise of a three-day holi-
day over the Fourth of July if
the. bill is passed by Friday.
Both Senator Knowland and
Senator Millikin of Colorado,
chairman of the Finance Com
mittee and floor manager for
the measure, are predicting that
the measure will be passed as
the administration wants it.
What shape the measure takes
is expected to have a bearing
on another bill soon to be asked
for Congress: A proposal to
raise the $275 billion national
debt ceiling.
Senator George of Georgia.
senior Democrat on the finance
group, said today that members
of his party were not unanimous
so far in their thinking on
amendments to the tax bill. 1t
would take a fairly solid bloc
of Democrats to upset G. o. p.
ranks on this measure, eSpe-
cially since the Republicans
today regain a 48-47 edge for
the first time in a year with the
swearing in of E. D. Crippa,
Wyoming Republican named to
succeed the late Senator Hunt.
Democrat. of Wyoming.
Senator George declined to
predict the outcome Of any
Democratic move. but said he
thought there would be some
Republican support for a tax
reduction for individuals. Re-
publican leaders. however, were
conceding only the loss of Sena-
tor LANCER. Republican. of North
Dakota, who has announced he
favors such an amendment.
Senator George is head of a
group which wants an income
tax cut either by an increase in
personal exemptions or by a
$40 tax credit to each taxpayer
figured as the final step on his
return. He said some of his
supporters want him to propose
5000 increase in exemptions, a
81 billion annual tax cut. but
that he appeared to be leaning
toward a 500 increase, which
would be a $2.4 billion annual
reduction. A Democratic move
for a 500 increase lost narrowly
in the House.
Senator Byrd of Virginia, Sec
ond-ranking Democrat on the
Finance Committee, is opposed
to any of the amendments be-
cause of the unbalanced Federal
budget. He and a few others
would like to strike out of the
bill some of the principal rev.
enue-losing features supported
by the administration.
A third group Of Democrats
wants to eliminate from the bill
some sections they say aid chief
ly the wealthy and big corpora
tions, Senator Douglas. Demo-
crat. of Illinois. for instance,
says he is concerned over a pro-
vision for substantial relief to
stockholders on their dividend
income.
Arguments for Bill.
The administration arguments
for the bill emphasize these
points:
/. 1t embodies a long overdue
revision and modernization OF
the Nations tax code, last over
hauled completely in 1876.
2. 1t eliminates many inequi-
ties and injuStices which have