Evening star. [volume] (Washington, D.C.) 1854-1972, 1954-03-16
Battle Over Tax Cut.
Legislation Nears
House Showdown
CONTINUED From First Page.)


few taxpayers but not to the
many" will lead two other Dem
ocratic spokesman in a formal
rebuttal to the Presidents ar
guments tonight.
Three Democrats To Speak.
Mr.. Rayburn. Senator George
of Georgia, the ranking Demo.
crat on the Senate Finance
Committee. and Representative
Cooper of Tennessee, ranking
democrat on the House Ways
and Means Committee. will
argue the Democratic side of the
case in. a television and radio
appearance tonight.
The battle comes to a head on
the House floor tomorrow, when
debate opens on the administra-
ton tax revision measure to
which the Democrats want to
add their exemption boosting
plan.
The House Democrats pro-
posal would increase individual
tax exemptions from the present
$500 to 500. Senator George
wants to go even further He
has proposed raising the ex-
emption to $500 this year and
81 900 next year.
President Eisenhower declared
last night that the loss Of reve-
nue. from such action would be
"a serious blow" to the Govern
ment. And he made it clear that
he thinks this is the wrong way
to cut taxes anyhow.
House Speaker Martin said he
Is quite sure the Presidents
address will have the effect Of
rallying many Republicans and
Democrats to his stand"
Party lines looked tightly
drawn as the test drew near.
The Republicans have only a
four-vote edge over the Demo-
Gratis in the House: 2l9 Repub-
licans to 215 Democrats with one
Independent.
Leaders of both parties pri-
vately expressed uncertainty over
the outcome of the key vote
Thursday. Some Democrats con-
ceded they may lose as many as
10 or IS of their members to
the other side. Earlier, they had
estimated all but five or six
Democrats would stay in line.
Some Republicans, on the other
hand. said 10 or IL of their
group appeared ready to cross
over. Another eight or so were
regarded as doubtful.
In an 18th hour effort to solid
ify their ranks. Speaker Martin
and other G. o. p. leaders called
a conference of all Republican
House members after the House
adjourns today.
One Bin Not Mentioned.
In his talk last night. Gen.
Eisenhower did not mention an
other tax bill pending in Con-
gress. This would cut about IS
excise taxes by 1912 million
year-a reduction the President
also opposes. 1t already has
passed the House. 4ll-3. and is
expected to clear the Senate
easily next week.
There have been reports the
Administration has virtually
abandoned hope of averting this
revenue reduction and is con-
centrating all its efforts against
the income tax exemption in
crease.
The President hit out last
night at what he called the pro
fessionally faint-hearted" as well
as the "unwise tax-cutter. He
said the faint hearted are saying
that I'VE are on the very brink of
economic disaster" and said
such talk is only to be expected
in an election year.
Emergency Denied.
But the truth is that I'VE do
not have a depression" the
President declared. He empha-
sized that economic conditions
do not call for an emergency
program that would justify larger
Federal deficits and further in
flation through large additional
tax reductions at this time"
He said the carefully bal
anced" administration tax re-
vision program will cut the taxes
of millions of Americans through
liberalizing deductions as well as
make for more jobs and lower
prices by encouraging invest
ment.
Mr.. Eisenhower linked the
Democratic proposals for boost
ing personal exemptions to what
he said some think is good pol!
itics" which only looks good on,
the surface"
He pointed out that raising
exemptions means that fewer
people will pay any income taxes
at all. saying a 1000 exemption
would excuse one taxpayer in
every three from all Federal in
come taxes.
Declaring that he is for
everybody paying his fair share"
he said he doesn't believe that
any American wants somebody
else to pay his own fair and just
share of the cost of his Govern
ment.
The President specifically in.
dorsed a controversial provision
in the administration tax bill to
reduce so-called double tax
alton" of corporation dividends.