Evening star. [volume] (Washington, D.C.) 1854-1972, 1954-02-11
Tax Law Reyisers'
Cuts Of ST. Billion
Near Proposed Limit

Tax law changes approved by
the House Ways and Means
Committee since January Is
already represent cuts of almost
$1.2 billion and soon will ex-
coed the SIS billion in decreases
recommended in President Eisen-
hower's program for the next
fiscal year.
With at least another two
weeks of daily sessions for ap-
prevail Of more revisions and
reductions, especially in the field
of capital gain taxation. the
committee is being eyed with
growing apprehension by some
Treasury authorities.
Committee officials estimated
many months ag,' that its over
all tax revision project would
result in savings Of about $1.2
billion for several million indi-
viduals and corporations-and q
corresponding drop In tax reve-
nue. to the TreaSury-during the
first year Of operation. Recent
estimates have indicated that
the cuts would amount to ap-
proximately So billion in the
third year and thereafter.
Equal Early Estimate.
Unofficial but undisputed cal
culations showed today that re-
visions voted by the committee
during the last month practi-
cally equal the earlier estimate
of $l.2 billion. They showed also
that the actual total represented
by all the revisionS adopted thus
far might be even higher. At
this time there is no way of de-
termining exactly how some of
the approved changes would
affect the revenue picture. COM
mittee sources say.
Administration officials do not
object to many of the reviSionS
already voted or to others ex-
pected to be accepted by the
committee. President Eisen-
hower'S budget message proposed
a 25-point program of tax re-
vision, with estimated savings
Of about $1.3 billion for tax
payers. Committee members
have said they will agree on
all except perhaps one of the
rs specific proposals.
But the committee does not
plan to stop there. Moreover,
some Republican members of the
committee and of the House are
likely to oppose Gen. Eisenhow-
er's request that Congress block
at least for another year the
scheduled decreases in income
taxes on corporations and in ex-
else levieS on alcoholic bever-
ages. gasoline. automobiles, Gig
aretteS and sporting goods.
Those reductions which other
wise would take effect April l
would cut Treasury revenues by
a total Of So billion a year.
Fiscal OfIicials Worried.
Thus, administration fiscal Of
flcialS repeatedly wear q more
worried look as the committee
goes ahead in preparing its gen.
eraI tax revision bill, with every
sign that the eventual total of
savings" will be many millions
more than the present $1.2 bill
lion figure
At a long session yesterday
the committee approved almost
q score Of changes. most of them
technical. The revenue losses in
many instances we're described
as likely to be negligible" while
in few others they could not be
estimated short Of actual expert
ence in operation.
Chairman Reed said the COM
mittee agreed to liberalize
present provisions for taxation
Of proceeds from the sale of
personal residences. The change
would allow a person, in COM
putting the sales price of such
a house. to deduct expenses such
as painting and pepering to put
the house in condition to sell.
Another provision would per-
NIT inventors, under certain cir
cumstanceS, to spread the in
come from their inventions over
LOST.