The Key West citizen. [volume] (Key West, Fla.) 1879-current, 1954-05-31
rage the KEY WEST CITIZEN Monday, May 81, 1884
Three Proposals Will Meet
Crucial Tests On Capitol Hill

Crucial Tests @
WASHINGTON @LThree major
proposals in President Eisenhow.
er's legislative program headed
for crucial tests on Capitol Hill
this week-with mixed prospects.
Both the House and Senate took
today off because of the Memorial
Day holiday.
The House will take up tomor.
row an Observation-Disclosures bill
to add new millions of persons to
the social security program, in
crease the benefit payments and
boost the annual contribution by
employees and employers. Passage
seemed assured.
The Senate has scheduled debate
starting Thursday on a House p-
proved housing bill. While passage
in some form is virtually certain.
New opposition from some south
ern Democrats cast considerable
doubt on the fate of the Presidents
request for authority for a four
year public housing program.
The Senate Finance Committee
hopes to complete by Friday its
version of the administration tax
revision bill, already passed by the
House. COP leaders have voiced
confidence that the committee will
approve it about in the form the
administration asked. But Demo.
cratic senator's plugging for a new
income tax cut have said they will
carry their fight to the Senate floor
if they lost in the committees
closed-door sessions.
The tax revision, a bulky S75.
page bill, would make no changes
in major levies but would cut tax
es about 81, 400, 00O. 900 in its first
year of operation through various
benefits for individuals and bust
neSSeS.
Sen. George (D-Ga) and two col
leagues are sponsoring move to
cut individual income taxes about
Az billion dollars this year by
boosting from 5000 to $500 the per-
sonal exemption allowed each taxl
payer and dependent. A Democrat
ic drive for boost to 500 lost mar
rowly in the House.
The administration is fighting
the move on the ground the gov
eminent can not stand that loss of
revenue.
Democrats have coupled their ef-
fort with a move to knock out of
the house bill an administrations
backed provision which would give
substantial tax relief to stockhold-
ers on their dividend income. The
revenue loss would be 24O million
the first year, and S14 million an
nually when fully effective.
The social security bill, Rep.
Daniel A. Reed (R-NY) said Sat
urday night, will win ''overwhelm.
ing" House approval. The Senate
has not acted. Two COP opponents
Reps. Mason (Ill) and utt (Calif)
assailed the bills main points but
indicated they thought it would
pass.
Reed, chairman of the Ways and
Means Committee which handled
the bill, hailed it as representing
substantial progress towards
achieving universal old-age and
survivors insurance coverage with
benefit levels adequate to provide
a realistic minimum protec-
ton ;"
Mason and UT conferred their
fire ON a provision to increase
from $500 to 400 the maximum
annual wage on which both work
ers and employers contribute, cur
rently at a rate of 2 per cent.
On the housing issue, Senate
Democratic leaders were reported
looking for some compromise
which might avert a party split
over a civil rights issue. The pos
sibility of such a split was raised
last week when the Supreme Court
threw out an appeal in behalf of
racial segregation in a public hous-
ing project.
Sen. Maybank (D-SC), previous
ly a strong advocate of low.rent
public housing, then announced he
would move in the Senate to strike
out all authority for such projects.
Eisenhower asked authority to
build 10000 units over a four
year period. The House eliminated
all public housing authority, and
the administration had been count
ing on the Senate to restore it.
Sen. Ellender (D-La) said over
the weekend he would continue to
support public housing, but he
conceded the Supreme Courts ac-
ton would undoubtedly affect the
thinking of those who are luke.
warm
The issue is not likely to come
to a Senate vote before next week.