Evening star. [volume] (Washington, D.C.) 1854-1972, 1954-03-14
Democrats Tax Plan
AssaiIed by Reed as
Political Maneuver
By Robert K. Welsh

dividual income tax exemptions
is a political attempt to scuttle
the entire Republican program
of tax reform and reduction.
He unleashed this attack as
the House girded for battle
Wednesday and Thursday on
a huge bill to overhaul the Fed
eral tax code and as the Senate
Finance Committee scheduled
three days of hearings opening
tomorrow on a House-approved
measure to trim numerous excise
taxes.
President Eisenhower, mean
while. prepared for a radio-TV
talk tomorrow night to urge
public support of the administra-
tons tax program including the
revision bill. He is expected to
explain why the Governments
fiscal plight at this time could
not stand revenue losses of the
magnitude seen in the Democra-
tic plan.
There were reports at the
Capitol that Gen. Eisenhower
also will write to several House
Republicans who have indicated
they favor an income tax exemp-
ton amendment now. In any
event. Representative Rogers.
Republican. of Massachusetts,
disclosed she wrote to Gen. Eli
senhower yesterday asking that
he advocate such an exemption
increase for dependents. Several
weeks ago she wrote Mr.. Reed
that the Republican majority on
the committee had done a dan
gerouS thing" in refusing to in
clude a provision of that kind.
Issues Firm Warning.
The veteran, New York Repub-
ican. however, stood firm against
1t in a warning yesterday:
1.-THE Democratic proposal
should be recognized for what it
ia politically-motivated at
tempt to destroy the pending tax
revision bill and the excise re-
duction program. If successful,
the Democratic strategy may we'll
mean no tax relief this year"
Speaker Martin made a similar
prediction. Repeating his earlier
conviction that Gen. Eisenhower
would veto the massive revision
bill If Democrats amend it to in
crease personal income tax ex-
emptions from the present. $500
to $500. Mr.. Martin told report
ers:
II base that on the belief that
the bill would not be satisfactory
to the administration because of
the added loss of revenue. 1t
would put the fiscal policies of
the country in worse shape than
II the entire bill is killed"
Estimating that the income tax
proposal would cost the Govern
ment between $3.5 billion and 81
billion when in full effect. the
Speaker asserted that the Demo-
Gratis thus would wreck the bill
and be responsible for preventing
a wide range of immediate tax
relief provided in the revision
measure.
The 875-page bill, first COM
prehensive revamping of the tax
structure in some 70 years. would
result in estimated savings of
1912 million the first year for
business and individuals. It
also would enable the Treasury
to retain about STA billion by
continuing the SO per cent cor
poration income tax rate which
otherwise would drop to Al per
cent April l..
Reed Cites His Record.
Mr.. Reed. who hopes to cap
his So years in Congress by en-
actnent Of the revision project,
said his record in favor of indi-
vidual income tax reduction is
as good as, or better than. that
Of the Democrats. He recalled
that he waged fight last year
to have a 10 per cent cut in
such levies take effect last June
80 instead of the start of 1854.
He protested that the revision
program for "fairer tax treat
ment for millions of people at
moderate cost" was endangered
by a Democratic drive he said
has "the sole purpose of de-
stroying this long overdue tax
reform"
The proposed exemption in
creaSeS would remove from 5 to
IA million of our people from
income-tax liability" he stated,
that this proposal has certain
political appeal / have no doubt.
However, am convinced that
every American is ready to pay
his. fair share of the cost of Gov
eminent. I am convinced that
every American is willing to as
sumo some responsibility toward
meeting the cost of the Ma
tons security. / believe that
what the taxpayers of this coun-
try really want is not to be re-
lieved entirely of this RESPONSE
bility. but to be assured that
their tax burdens will be re-
duced to reasonable levels.
"Democatic plans to remove
millions of people from the Fed
eral tax rolls will only mean
shifting the financial burden to
a smaller segment of our peo-
pie. The American people should
not be fooled by this sudden
solicitude of the Democratic
Party for the taxpayer. For 20
years the Democratic Party had
its opportunity to cut spending
and cut taxes. What was it's
record? Ever more spending and
ever higher taxes.
when the Republican Party
left Office in 1882, personal ex-