Evening star. [volume] (Washington, D.C.) 1854-1972, 1954-03-04
House Gets Bill
Cutting Excise
Taxes Today
Would Be Saving
OF 1912 Million
Yearly to Consumers
BY Robert K. Walsh

Inc House receives from its
Ways and Means Committee to-
day a bill to save consumers $912
million by cutting a score Of
sales taxes on goods and services.
effective April l, but to retain
another 81 billion in Treasury
revenue by continuing several
excuses which otherwise would
decrease on that date.
Following a final vote on
technically corrected version, the
committe planned to report out
the measure formally to the
House this afternoon for floor
debate early next week. To all
intents and purposes, the COM
mittee approved the bill late yes
terday. Adoption came only
after an Unexpectedly long and
rugged all-day closed session.
Democrats tried unsuccessfully
to insert at least IS further cuts
that would have totaled another
81 billion.
The bill. as approved by the
committee. is essentially the
same as when Chairman Reed
introduced it last Tuesday. It
is only half way satisfactory to
the Eisenhower administration.
President Eisenhower said at
his news conference yesterday
that he opposes the plan to cut
the special excise taxes. The
Reed bill nevertheless will go
through the House. probably
next Wednesday. by an "over-
whelming" vote, Republican
Leader Halleck predicted.
Would Extend Some.
Secretary of the Treasury
Humphrey said the administra-
ton favors the provision to ex-
tend the excuses that would drop
April ! on alcoholic beverages,
tobacco. automobiles and gaso-
line. That would enable the
Treasury to retain slightly more
than 81 billion during the COM
ing fiscal year. But the ADMIN
iStration, Mr.. Humphrey de-
clared. believes the Treasury at
this time cannot afford the COM
mittees cuts totaling 1912 mil
lion in excuses on a variety OF
items and services.
At one stage of the commit
tees proceedings yesterday. men,
bers disclosed that a 13-to-12
vote had removed all Federal ad-
missions taxes on college and
high school athletic events. Sew
eral hours later. the committee
took another look on the same
proposal. 1t voted Is to IL to
keep 10 per cent tax on such
admissions. Representative UT.
Republican, of California re-
portedly was the member who
shifted his vote.
Cut to 10 Per Cent.
In general. all of the excise
tax rates affected by the meas
ure will be 10 per cent on April
l, as compared with present lev
els ranging from IL to IS per
cent.
Excise taxes that would be re-
duced from Is to 10 per cent
are on long distance telephone
service and leased wire teletype
or talking circuit special service.
Those that would be slashed
from 20 to 10 per cent are on
jewelry, furs, luggage and wom-
ems handbags, cosmetics and
toilet preparations, admissions to
theaters and other entertainment
including sports events: night
club charges, club dues, elec-
trio light bulbs and tubes,
Photographic apparatus and
equipment and safe deposit
boxes. In general, the tax
on admissions would represent
one cent for every 10 cents or
major fraction, instead of one
cent for every cents.
Taxes that would be decreased
from IS to 10 per cent are on
local telephone calls, domestic
telegraph, cable and radio mes
sages, railroad, airline and SINH
lar transportation tickets. Gig
arctic, cigar and pipe mechanical
lighters. fountain pens. mechanic
cal pencils and ball point pens,
and sporting goods and equip
ment. The present II per cent
tax on firearms. shells, pistols
and revolvers would drop to 10
per cent.