Evening star. [volume] (Washington, D.C.) 1854-1972, 1954-02-28
6. 0. P. Tax Strategy
Forces Democrats 10
End Own Differences
By Robert K. Welsh

House Democrats. wary of be-
ing trapped on tax legislation,
hope to dissolve their own diff
ferences this week on how best
to boost income tax exemptions
in the face of a Republican
strategy shift toward cuts in
excuses.
Former Speaker Rayburn, pow
erful leader of the House minor
fly, repeatedly is confident Of
resolving a Democratic dilemma.
His problem seemed compare
lively simple until Republicans
last week uncorked a package
plan for reduction Of non-income
taxes believed acceptable to the
White House.
Hopes For Trim Front.
The veteran Texan repeatedly
Is confident of forming a firm
and united Democratic front on
House parliamentary tactics. of
keeping income tax relief as the
main goal, and of getting some
Republican support. He and his
colleagues. especially on the
Ways and Means Committee, also
may try to take the ball away
from the Republicans on some
aspects of the excise tax ques-
ton as we'll as the general tax re-
vision bill sponsored by the COM
mlttee.
An excise tax reduction move.
advocated earlier by Speaker
Martin and several other Repub-
lican leaders. is likely to be taken
up by the committee tomorrow.
That would put some Democrats
on the spot. But those who have
urged such cuts will remind the
majority that Chairman Reed
last Tuesday refused to allow q
vote on a motion by Representa-
tive Boggs. Democrat, Of Louisi-
ana to lower most exise taxes
to 10 per cent. Mr.. Reed took
the position that the Boggs mo-
ton was out of order as applied
to the general tax revision bill.
The excise tax plan ready for
committee consideration tomor-
row is essentially the same as the
BoggS motion. It nevertheless
is only part of an overall attempt
to stave off huge reductions in
individual income taxes and pre-.
vent a major split among Re-
publicans when the revision bill
reaches the House floor.
The proposal would reduce to
10 per cent the excise taxes
which now range from IS to IS
per cent on numerous items such
as jewelry, furs. cosmetics, lug
gage. theater admissions, tele-
phone calls. kilograms and trans
portation fares. This would re-
duce Federal revenues about $3.50
million a year.
Savings Of 50 Billion.
The second part of the tax-cut
package would continue present
levels in corporation income
taxes and several excise taxes
which otherwise viii drop April
l. Continuance of the existing
rates would save the Treasury So
billion. $685..
A third part of the admins
tration proposal is the 8O0-page
tax revision bill on which the
Ways and Means Committee fin
tshed work last week. The COM
mittee expects to send it to the
House late this week. along with
a 1,500-word report. This bill
would result in revenue losses Of
abrupt S1.3 billion to the gov
eminent.
Republican leaders who con-
ferred with Secretary of the
Treasury Humphrey at the Cap
itol last Friday indicate that the
excise tax cut arrangement, If
approved by the committee to-
morrow, would be brought up
and passed by the House within
two weeks.
This excise tav reduction pro-
vision probably would be in
serted in a bill to cancel the
scheduled April / decrease from
So to ~ per cent in the corporate
income tax and reductions in
existing excuses on liquor, tobac-
co Automobiles and uaSolina