Evening star., 1954-03-21


tion ever considered by Congress
passed from the hands Of the
House to those OF the Senate last
week. The subject was taxes, and
from the furor kicked up in the
House Of Representatives it began
to look as If President Eisenhower
might have been right about COM
munism not being the issue In
November.
If the Democrats have their
way, certainly, the issue win be
taxes-taxes that help "big busi-
ness" VS.. taxes that help the ''little
man."
The matter at issue last week
was the Internal Revenue Code OF
1854, a compilation Of new and
existing tax legislation which
with indexes and ss-reference
tables-took 875 printed pages to
recite. Accompanying the bill was
d 581-page report, the minority
portion of which undoubtedly will
be major campaign reference
work for Democratic Office seekers.
The bill, as reported out by the
House Ways and Means Commit
tee on March 9, provided tax re-
auctions for individuals totaling
$778 million in the first year,
plus reductions to corporations
amounting to $619 million. How
ever, it also extended for q year
the 50 per cent, corporation profits
tax, which originally had been
scheduled to drop next month to
a. per cent. This extension would
give the Government $1.2 billion
more than it would have received
had the tax been reduced. Net
effect, therefore, would be q loss
In Federal revenue Of $197 million.
$500 vs.. 500
The Democrats liked practically
nothing about the bill. Least Of
all they approved of continuation
of exemptions for individuals at
the present rate Of $500 per per-
son. The House committee mi
nority wanted exemptions raised
to $500. In the Senate, the vet
eran Georgia Democrat, Walter
George, was asking for an imme-
date boost in exemptions to $500,
with further increase to 81 900
in year.
The idea of narrowing the in
come tax base by raising personal
exemptions so appealed to elec-
ton worried Congressman that
President Eisenhower had to step
into the fight. On Monday night
he. took his case to the people.
Blasting the Democratic plan as
"unsound," Gen. Eisenhower said:
ITO make large additional saw
ings at this moment means seri-
ously weakening our national de-
fense. do not know any friends
of the United States who want
that, under present world condi-
tionS."
The following evening, Demo-
cratic triumvirate - Representa-
tiveS Rayburn of Texas and Cooper
of Tennessee, and Senator George
answered the President On tele-
vision. Mr.. Rayburn, the minor
ity'S grand old man." said fatty
that the Democrats "do not believe
the [President's1 defense was
ponvincing."
Mr.. Rayburn charged. the Re-
publicans with ''resurrecting the
'trickle-down philosophy" This,
he said, means ''that if they give
tax relief to those in the high in
come groups, some Of the benefit
may eventually trickle down to
the great majority Of taxpayers.
This trickle-down has never come
about, in all history of Republican
tax laws"
4 P0rty Natter
The opposing speeches on sue
ceeding nights emphasized what
really needed scant emphasis:
This was a party matter. Demo-
Gratis could base their campaign
ing on their efforts to help the
''little man" escape the effects Of
a Republican "soak-the-poor" poll
icy. Republicans could defend
themselves on the basis Of their
support Of the President.
When the vote came In the
House on Thursday, the admins
tration won. But it was close
victory and one that came only
after bitterly partisan debate.
Actually, there were two votes
on Thursday, but the first was the
crucial one. It was on Demo-
cratic motion to send the bill back
to the Ways and Means Commit
tee with instructions to increase
individual exemptions from 5000
to $70O.
The vote against recommittal
was 210-2O4, with 10 Republicans
joining the principal body of
Democrats, and nine Democrats
voting with the Republicans.
With recommittal killed, the bill
came up for final passage. This
was easy-339-80.
The tax bill now goes to the
Senate, where plurality of DEM
ocrats and the stature of Senator