The Key West citizen. [volume] (Key West, Fla.) 1879-current, 1954-03-19
Tough Fight Against Ike's Tax Bill Looms
In Senate Despite Success In House Thursday
By JOE HALL

Eisenhower chalked up a big vic
tory, in House passage yesterday
of a major tax revision bill with
out a personal income tax cut he
opposed, but an even tougher fight
was shaping up in the Senate
today.
With party lines holding I'M
usually firm, the House beat down
210-2O4 a Democratic move to
slash income taxes $2,4o0, 200, 600
a year by raising the personal
exemption for each taxpayer and
dependent from $500 to $500.
The President went to the coun-
try by television and radio Mon
day night to urge defeat of this
proposal. He said it was politically
inspired and would be a serious
blow to the governments finances.
even endangering national de-
tense.
The whole tax issue is certain
to be aired at length in the COM
ing campaign for control of Con-
greSs. There were sharply vary
ing appraisals of yesterdays
House action.
Rep. Kirwan of Ohio, chairman
of the Democratic Congressional
Campaign Committee, said that as
a result he has raised from As to
go his estimate of anticipated
Democratic gains in the House
in November. His Republican
counterpart, Rep. Richard
Simpson of Pennsylvania, replied
that the tax action will bring votes
to the COP. He predicted Repub-
lican gains of Is House seats.
AS the battle over the higher
exemption proposal shifted to the
Senate, the administration ap-
peared to face an even tougher
fight than it had in the House.
One COP Senate leader conced-
ed privately he believed the $1OO
increase in exemptions would pass
the Senate, where there are 48
Democrats to Al Republicans. In
that case, the final version would
have to be worked out in a confer
ence between the two branches.
Just before the House vote yes
terday, Republican Leader Halleck
of Indiana implied in a speech
that Eisenhower would veto the
revision bill if the Democratic pro-
poSal won.
In the showdown, only 10 of the
211 Republicans voting supported
the exemption increase. Nine
Democrats opposed it as COM
pared with 1913 who voted "aye."
The lone independent voted for it.
The House afterwards passed
by a $3.50 vote the 875-page tax
revision bill to which the Demo-
Gratis had tried to attach the re-
duction in income levies.
This measure would rewrite the
entire tax code for the first time
in 20 years. 1t covers such a broad
range of subjects that Senate floor
consideration of it may not come
for two or three months.
Senate Democrats believe they
have a big asset in that veteran
Sen. George (D-Ga), dean of the
Senate, is leading the battle in
that branch for the boost in ex.
emptions.
George is the Democrats lead
ing tax expert and has been con-
Sidered conservative in financial
matters.
His plan would boost exemptions
to $500 for this year, at revenue
cost of Az billion dollars, and
81 900 in 1855 and thereafter, with
an annual revenue loss of s bill
lion.
George said in an interview
today he knew of some firm sup
port for his proposal on the Repub-
ican side.
"A lot of them would like to 60
along" he said. but the admin
iStration will put the pressure on
them and try to keep them in
line"
The Finance Committee met
again today in closed session to
try to report out a House bill to
cut Is excise taxes by a total of
912 million dollars.
The administration opposes the
reduction but indications were the
| committee would not restore any
OF the revenue knocked out by the
House.
The permanent revision pro-
gram in the general tax bill would
cost about 81, 400, 0OO, 900 in revenue
the first year. Democrats say the
loss would mount to 31a billions
when all provision take full effect;
Republicans dispute this.
The bill would permit corpora.
tons to make bigger depreciation
deductions during the first years
OF use of plant and equipment. 1t
also would cut taxes on dividends
paid to stockholders.
It would carry a wide variety
OF fringe benefits for individuals,
including increased deductions for
medical expenses, deductions for
chlld-care expenses of working
widows, deductions to farmers for
soil conservation expenses, de-