Evening star., 1954-01-03
Chuirmun Bucks
Eisenhower on
Issue Again
By Robert K. Wolsh

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thorn in the tax. side of the
Eisenhower administration. will
buck the White House by de-
manding a further cut in indi-
Nidual income taxes in the new
session of Congress.
Soon after Congress returns
this week, informed sources said
yesterday. the House Ways and
Means Committee chairman viii
urge a 4 or S per cent reduction.
This would be in addition to the
10 per cent drop that became
effective January /, although it
might not apply until 1855. It
would trim Treasury receipts by
more than 81 billion a year.
The veteran New York Re-
publican was vacationing when
House and Senate Republican
leaders conferred with President
Eisenhower last month on the
1854 legislative program. He has
not disclosed detailed tax meas
ures he will sponsor. He never
thelesS has insisted that another
chop in individual income taxes
is necessary now and that
eventually the rates must go
down "a per cent to the pre-
Korean level.
Faces Rugged Battle.
Mr.. Reed thus faces a rugged
fight with the White House and
Treasury as well as some House
Republican leaders and several
members of his committee of Is
Republicans and 10 Democrats.
He nevertheless holds a stronger
position than last year when he
tried unsuccessfully to start the
10 per cent income tax cutback
and end the excess profits tax
last June 80 instead Of this
month.
Eisenhower headquarters at
Augusta, Ca. announced yester-
day that the President would
send a separate message to Con-
gress on taxes and would pro-
pose a modified program" Of
change. Gen. Eisenhower said
several weeks ago he will not
ask for higher taxes.
The administration hopes to
Offset as much as possible Of the
overall So billion in revenue
losses that will result from the
1854 tax changes already in ef-
feet or scheduled for April /.
1t expects to save an extra SIS
billion in operating costs and
keep expenditures within SGT
billion. 81.
Insists on Spending Cuts.
Mr. Reed insists that the gov
ernmental and foreign aid
spending could safely be slashed
still more and clear the way for
lower tax rates and removal Of
"injustices" in the tax laws.
His drive for more slashing Of
income taxes. and his earlier
recorded opposition to continu-
ance of corporation tax rates
scheduled to drop next April,
held particular interest at this
time because of a vast tax law
revision program he spearheads.
staff findings of the far
reaching study and full commit
tee hearings with almost 600
witnesses last year will be the
committees first order of busi-
ness this month. Mr.. Reed has
made no secret of a wish to cap
his legislative career of more
than 80 years by putting through
this codifcation and moderni-
zation Of the Federal tax struc-
ture.
Probable recommendations
would broaden provisions for
medical expenses, give greater
deduction allowances to some
working mothers and to parents
whose children earn money. free
thousands of lower-bracket tax
payers from filling out detailed
tax forms or declaring estimated
income, ease if not remove the
double taxation Of corporation
dividends, and provide for larger
depreciation deductions in busi-
ness.
Treasury and committee ex-
.perts have worked together on
this project and the Treasury
has given at least tentative ap-
proval of most Of the prospective
changes. But a main concern
of the administrations fiscal
officers is that the revision would
take away at least SIS billion
from the Governments annual
revenue.
This loss. would be ON top Of
(See TAXES. Page A-4.1