Evening star., 1954-11-10
Little Tax Relief Hope
Is Seen by Democrats
On Key House Group
by the Associated Press

Key democrats VINO leo b
futile fight earlier this year for
q big individual income tax
cut held out. little hope today
for any substantial taxpayer re-
lief in 1855. even though the
Democratic Party will control
Congress.
They indicated a less favor
able budget situation may post
pone a new individual income
tax cut until 1856, or at best
permit a smaller cut than they
advocated in the past congress
sional session.
All 10 holdover Democrats on
the tax-writlng House Ways
and Means Committee were
polled for their views on a pos
sible individual income tax cut
next year.
Only One Is Optimistic.
OF the nine who replied, five
voiced doubts about the prospects.
for such a cut. three declined to
make any forecast and only
Representative Dingell, Demo-
crat. of Michigan said the OUT.
look was bright. Mr.. Dingell on
Monday announced he will intro
duce a bill early in the new
Congress to boost individual ex-
emptionS for each taxpayer and
dependent by $100. The present
exemption is 5000.
When the Democrats tried un-
successfully to tack a similar
provision to a big tax revision
bill earlier this year, all 10 Ways
and Means Committee Demo-
Gratis supported the move. If
enacted, it would have slashed
Government revenue about $2.3
billion a year 1t also would
have relieved about seven million
taxpayers of any Federal income
tax bill.
Opposed by the Eisenhower
administration. the Democratic
move was beaten in the House,
210-204. A similar proposal was
defeated narrowly In the Senate.
IS Billion Deficit Forecast.
President Eisenhower's revised
budget forecast deficit Of al
most SIS billion for the fiscal year
ending next June 80. The Pres
ident has said this situation.
along with continued heavy de-
tense spending. seems almost
certain to bar any big tax cut
at this time.
Democrats used the tax issue
In the recent political campaign,
declaring a tax revision program
sponsored by Republicans pro-
vided hefty tax cuts for corpora =
tions and wealthy persons, but
did not give enough help to the
average taxpayer. Mr.. Dingell's
bill would repeal a section of the
new tax law providing relief to
stockholders on their dividend
income.
Commenting on the fresh in
dividual tax cut proposals, Rep
resentative Eberharter, Demo-
crat, of Pennsylvania. said: =
doubt if it can be done. We.
have to face the probability Of
higher deficit. We don't like
to advocate an increase in the
deficit which is already so high,
unless faced with an emergency
situation"
Representative Boggs. DEM
ocrat. of louisiana. who first pro-
posed the individual exemption
increase this year.. said he would
like to hope for lower income
taxes in 1855, but that "it de-.
pends largely on the fiscal OUT
look. which is not too bright
now."
Representative Gregory, Dem
ocrat, of Kentucky Said he would
like. to see individual income
taxes cut as soon as possible but
II doubt if it is possible now in
view of the fiscal situation"
Representative O'Brien, Dem
ocrat. of Illinois said he would
support the move IF it comes up,
but I'm not sure yet any action
will be taken. I don't see how
we can do lot until we get rid
OF the deficit
Several members asked not to
be quoted by name. One of
them said that if Democrats
were sincere in their 1854 fight,
they ought to push equally hard
now.
Mr.. Dingell said he was con-
f1dent Representative Cooper,
Democrat. of Tennessee, slated
to be new chairman of the Ways
and Means Committee, would go
along with his view. However.
Mr.. Cooper has said only that ne
will await Gen. Eisenhower's
new budget message in January
and other economic develop
ments before speaking out on
1855 tax issues.
Representative Rayburn of
Texas. who is in line to return
to the House Speakers chair,
has said Democrats will seek to
r0rrnct toy incn,1ifioc