Evening star. [volume] (Washington, D.C.) 1854-1972, 1954-08-16
First Complete Tax Overhaul
In IS Years Goes in Effect;
Burden Is Eased for Millions
President Signs
Bill Ending Over
SO LoophoIes
By Gornett D. Homer

EIGSlQGI1G Eisenhower GOQay
signed a monumental tax revi-
sion bill which he described "a
good law" that will benefit all
Americans"
Congressional leaders gath
cred around the Presidents desk
and watched him sign the
measure that will cut taxes for
many Americans and close more
e than so loopholes through which
Gen. Eisenhower said some tax
payers may have tried to avoid
their fair share of the tax
burden.
AS he finished signing the
legislation-929 printed pages
bound in a thick book-the
President turned to Chairman
Millikin Of the Senate Finance
Committee and Chairman Reed
Of the House Ways and Means
Committee, and said:
There is lot of work in
there for lawyers"
Heaviest In Martins Time.
House Speaker Martin told re-
porters it was 1.-The heaviest bill''
passed by Congress Gin my time"
And it is a simplication BILL"
interjected Senator Ferguson,
Republican of Michigan.
The first complete revision of
the nations tax laws in IS years,
the new law will give what Gen.
Eisenhower described as "fairer
tax treatment" to millions of
Americans.
He issued statement review
ing provisions of the measure
that will cut tax payments for
many individuals and "help to
expand the economy" by re-
vising some taxes on business.
Gen. Eisenhower described the
new law as "the excellent result
of cooperative efforts by Con-
gress and the Treasury Depart
ment.
Result Of Cooperation.
Following is the text of Gen.
Eisenhower's statement on the
bill:
"This bill which today be-
comes law is the excellent result
of cooperative efforts by the
Congress and the Department of
the Treasury to give our tax
code it's first complete revision
in rs years. It is a good law.
It will benefit all Americans.
This law brings tax relief to
large numbers of our citizens.
1t is, in fact, part of a COM
prehensive tax program which,
since January l of this year,
will have provided for tax cuts
totaling STA billion-the largest
dollar tax cut in any year in
the Nations history.
ct is a law which will help
millions of Americans by giving
them fairer tax treatment than
they now receive. For example:
1.-THE parents of dependent
children who work can continue
to claim their children as de-
pendents, no matter how much
the children earn.
Retired people and widows
living on retirement income
other than social security will
receive a tax credit which will
in effect be equal to the tax
credit now given to people liv-
ing on social security income.
New Rule on Dependents.
Taxpayers will now be able
to claim as dependents people
who are not related to them,
so long as they provide more
than one-half Of such depend
ents' support.
Farmers active in soil and
water conservation will be able
TO deduct from Chelr income the
cost of such conservation work,
up to Is per cent of their gross
income.
people with large medical
expenses will now be able to de-
duct from their income all such
expenses which exceed 3 per
rent (rather than 5 per cent?
of their incomes, and the maxi
mum amounts deductible will be
twice as large as they were in
the past.
Working widows and many
other mothers with child care
expenses will be able to deduct
from their income up to 5000 a
year for the costs of taking care
of their children.
People receiving sick bene-
=