Evening star. [volume] (Washington, D.C.) 1854-1972, 1954-03-15
Mink Coat SET Aided
By Excise Tax Cuts,
Witness Complains

n SpUkeSkuHu 1uE tklC m8kGTS
Of home laundry equipment to-
day accused the House Of giving
tax relief to the privileged wear
ers Of mink coats. but none to
housewives on home appliances.
The witness, Peter r. Nehem-
kis, counsel for the American
Home Laundry Manufacturers
Association. was testifying be-
fore the Senate Finance Com
mittee on the House bill which
seeks to equa1ize most excise
rates at 10 per cent by reducing
those that have been paying
more.
The witness said he had q
further interest in the matter
because husbands today help to
''lug baskets Of wet clothes" out
to the backyard II they are I'M
able to buy their wives an auto
matte dryer.
Chairman Millikin said he
grew up in days when families
had no automatic appliances and
he did not recall that "the men
lugged the stuff out to the lines"
"ThiS is q new generation. Sem
Ator." the witness replied.
ElectrOnics Man Testifies.
The committee also heard
Glen Mcdaniel, president of the
Radio, Electronics. Television
Manufactures Association, who
testified:
"You cannot justify whopping
reductions, up to so per cent, in
the taxes on expensive jewelry
and perfumes. or admissions to
night clubs and race tracks and
give no relief whatever to ranges.
refrigerators, televiSion sets and
home laundry equipment"
In addition to leveling most
excuses at 10 per cent now, the
House bill also provides for cuts
. year from now on some dur
able goods, such as automobiles
from 10 to z percent.
Mr.. Mcdaniel said this leaves
household appliances as the only
group given no relief, except for
the taxes on wagering and pin
ball machines.
L. r. Mendelson, speaking for
the makers of hot water heaters.
urged the committee to stop
singing out heaters as the only
plumbing item subjected to an
excise tax.
Fulbright Assails Plan.
Earlier, Senator Fulbright,
Democrat. Of Arkansas. delivered
one Of the sharpest attacks on
the general tax revision thus far.
A member of the Joint Commit
tee on the Economic Report, he
criticized the bill as well as the
Eisenhower administrations tax
program in general as being
"basically wrong"
1T sacrifices expansion of the
consumer market to achieve the
objective of reducing tax bur-
dens on those groups and indi-.
VidualS who have had it. best
tn the recent years." he charged.
worst Of all, it could quite pos
Sibly induce such q period of
unSound speculative activity,
leading to an unbalance between
expanding investment and re-
stricted consumption, as to run
the hazard Of creating q depres-
sion within q few years which
might closely resemble those ter
rible years following 1929"
Even before Senator Fulbright
issued q 22-page statement and
analysis on the revision bill,
House Republican Leader Hal
leck showed the line Of counter
attack to all Democratic assaults.
He and his associates oppose all
Democratic efforts to change the
measure. particularly by increas-
ing individual tax exemptions.
They also accuse the Democrats
Of threatening to defeat the bill
unless it is amended in a way
that would Immediately put the
Federal budget at least another
$2.5 billion in the red.
Mr.. Halleck listed the follow
ing relief provisions he said
would perish with the bill II the
Democrats put through their
plan: Increased deductions for
family medical expenses; tax
relief for widows, widowers.
divorced or separated persons
and wives whose husbands are
physically handicapped but who
must care for dependent chill
dren: tax relief for parents who
now cannot claim dependency
deductions for children who earn
more than $500 a year; tax relief
for retired people over IS; sick
ness and accident tax adjust
ments; and many other inn
provements in the bill which cor
rect injusticeS. hardship and tax
collecting"