Evening star. [volume] (Washington, D.C.) 1854-1972, 1954-02-26
House Chiefs Likely
To Delay Showdown
On Income Tax Cut
BY Robert K. Walsh

rear OF QeIeat Dy q demo-
cratic-Republican coalition may
cause House leaders to delay a
floor showdown on the Ways and
Means Committees tax revision
bill until the Eisenhower adj
ministration can muster stronger
opposition to personal income
tax cuts at this time.
This was disclosed by House
sources today in estimating that
at least 20 Republican members
threaten to line up with Demo-
Gratis favoring a provision in
creaSing income tax exemptions.
The committee. winding up its
item-by-item action on the 800
page bill today, still plans to
have it in final shape for report
ing to the House next Wednes-
day or Thursday. But some Off
Gals said that even if the bill
is reported out next week it may
be kept off the floor for another
week or more.
Time Is Sought.
This would give time for an
about administration effort to
explain to the public that such
tax reduction now would be eco
nomically dangerous. House de-
lay also would give time for
congressional leaders to persuade
some currently recalcitrant Re-
publican members not to join
Democrats in trying to amend
the revision bill.
Administration opposition to
cuts in individual income taxes
at this time was made clear late
yesterday by Secretary of the
Treasury Humphrey, repeatedly
with the advance approval of
Gen. Eisenhower.
Warns of Deficit Financing.
Mr.. Humphrey warned against
blanket increases in exemptions
that would throw us back into
substantial deficit financing" In
siSting that the administration
tax program has not changed, he
apparently left the door open for
income-tax relief of some sort in
the future. But he emphasized
that this is not the time, eSpe-
cially for cuts of the size urged
by Democrats in the Senate and
House
I'VE must pay the bill for the
cost of our national security"
he said. This cost is coming
down but is still very high, and
it is the reason why taxes must
continue to remain relatively
high until Government spending
can be further reduced with
safety"
A House Democratic plan to
increase exemptions from the
present 5000 to $700 would cost
the Treasury $2.2 billion a year.
A proposal by Senator George,
Democrat. of Georgia. for
$1,000 exemption would cost $40
billion.
Mr.. Humphrey noted that
committee changes in the mas
sive revamping Of the Federal tax
laws would save something like
SIS billion for taxpayers but does
not call for any acrosS-the board
reduction in income taxes.
Deduction Increased.
At an all-day session yester-
day the committee voted to:
/. Allow taxpayers to take
maximum deduction of 80 in
stead of 20 per cent for contri-
buttons to religious organiza-
tions, educational institutions
and hospitals.
2. Amend an earlier-adopted
provision exempting up to $1,000
in income for retired persons.
The new version would apply
only to persons IS and over and
would limit the maximum tax
saving at $240 year.
3. Enable the Internal Reve-
nue. Bureau to seize salaries of
Government employees who fail
to pay their income taxes.
4. Prevent a tax delinquent
from possibly losing his shirt"
if the Government attached his
property because of tax liability.
The provision would exempt
wearing apparel, school books.
fuel, provisions and some per-
Sonal effects and furniture up
to $500 from attachment in such
cases.
5. Give the Secretary of the
Treasury discretion to let tax
payers file return in whole dollar