Evening star. [volume] (Washington, D.C.) 1854-1972, 1954-03-18
6. 0. P. Tax Bill
Hopes Boosted
By Humphrey
Supporters Held
Strengthened by
Secretoy's Letter
BY Robert K. Walsh

Secretary Of the Treasury
Humphrey provided a last-min-
ute punch today to strengthen
House Republican hopes of beat
ing a Democratic attack on the
tax revision bill.
The House expected to vote
on the massive measure late
today. Odds for passage with
out change seemed better than
Republican leaders themselves
thought possible only a few days
ago.
Democrats. far from conceding
defeat. are driving for a show
down on their move to force an
amendment increasing personal
income taxes from $500 to $700.
They also want to knock out a
provision easing taxation of in
come from corporation stock
dividends.
Secretary Humphrey gave spe-
cial attention to that provision
today. In a letter to Speaker
Martin-scheduled to be read
to the House-Mr. Humphrey
deplored the Substantial amount
of miSinformation circulating
about" that proposal.
Cites Roosevelt Letter.
He declared the matter is not
new. Both major political
parties during the last 20 years
recognized the .unfairness c.
double taxation of dividends, he
said. The late President Roose-
velt's tax message in March,
1886, cited it's "inequity." MIR.
Humphrey recalled.
He noted also that the House
Committee on Postwar Policy
and Planning recommended in
1914 and in. 1916 that elimi-
nation of such double taxation
be considered. The Committee
for Economic Development in
1947 described it as a gross
ineQuity" and many Democrats
on the House Ways and Means
Committee in 1948 suggested re-
lief from double taxation of div
idends, he said. The American
Farm Bureau Federation, the
Investors League and the Amer
lean Retail Federation were
listed by Mr.. Humphrey as be-
ing among many organizations
that have opposed such taxation.
The Treasury Secretary's let
ter came less than "a hours
after President Eisenhower in
dicated he might veto the tax
bill if it includes the Democratic
proposal for income-tax exemp-
ton increases. The Republicans
estimate this method of tax re-
duction would put the Treasury
at least $2.4 billion more in the
red.
Urges EnactiOn.
Mr.. Humphrey wrote that 1T
is in the long-run interests of
the American people that this
bill be enacted substantially in
its present form"
This well-balanced tax pro-
gram" it said, is the corner
stone of the entire tax program
of this administration as pro-
posed by President Eisenhower
in his State of the Union and
other messages. 1t is designed to
make America more secure, both
from without and from within.
and better, safer, more really
prosperous country for us all to
live in. I am sure that every
Congressman is voting on this
vital bill will be guided by his
highest sense of the national
interest"
Republican and Democratic
leaders still refused to hazard
predictions as to the exact mar
gin by which they hope to win.
The Republicans believe that at
least six of their colleagues pre-
viously considered doubtful"
would vote against the Demo-
cratic motion.
They estimated that perhaps
8 or 10 other Republicans might
side with the Democrats on the
income tax question. But they
count on more than Is Demo-
Gratis to join the Republicans on
the issue.
The House has 2l9 Republic
cans. 215 Democrats and one IN
dependent.
Smith Agrees With G. O. P.
Representative Smith, Demo-
crat. of Virginia, told the House
at the start of general debate
yesterday that he could not go
Continued on Page "A, Col. So