Evening star. [volume] (Washington, D.C.) 1854-1972, 1954-03-06
Democrats May Seek
Tax Relief Through
'Quickie' Excise Bill
Fight Moy Come in
Bill Scheduled for
Study This Month
By J. A. O'leoN
By J. A. O'leory

Some Democratic Senators
were considering today the ad-
visibility of trying to raise per-
sonal tax exemptions through an
amendment to the "quickie" ex-
else tax bill instead of waiting
to attempt writing it into the
general tax revision bill.
Senator George. Democrat. of
Georgia, leading sponsor of a
proposal to allow each taxpayer
and dependent an exemption of
$500 instead of 5000 this year.
said he has not decided which
bill to use as the vehicle.
But he admitted there is a
possibility the fight may come
this month on the excise bill,
which must pass before April /.
He said some of his colleagues
want to raise the issue on the
first bill because they fear the
second measure may never reach
the Senate.
Plans Conference.
Senator George said he would
confer next week with members
of both houses before making up
his mind.
The excise tax bill comes up
for House action Wednesday.
The Rules Committee yesterday
cleared it for four hours of gen.
eral debate. Republican leaders
predicted overwhelming passage
despite Democratic opposition to
some of its provisions.
Democrats, however, centered
their main attack on the vast
general tax revision bill expected
to be taken up March II by the
House. House Democrats said
today they have decided to put
up a floor fight to try to kill a
Republican-sponsored provision
reducing taxes on personal in
come from corporation stock
dividends.
They already have served no
tice that even before the big
bill reaches the Senate they will
move to amend it by adding a
proposal increasing individual
income tax exemptions from the
present $500 to $700.
Were Split on Strategy.
Until now House Democrats
have been divided on strategy in
attempting to change the revision
bill. Some have favored merely
adding the exemption increase.
Others advocated striking out not
only the stock dividend provision,
but several misunderstanding
sections such as more rapid tax
allowances for depreciation of
new plants and equipment.
The compromise strategy. If
enacted, would result in a $2.4
million loss in Treasury revenue
because Of increased income tax
exemptions. But it would save
about $24O million in revenue by
blocking the proposed tax relief
on stock dividend income.
There is not much basis for a
fear that the general revision bill
will not reach the Senate later
in the session. House leaders
have made that virtually certain
by placing in it the administra-
tons recommendation that the
present So per cent income tax
rate on corporations be extend
ed for another year. This tax Is
due to go down on April l to Al
per cent, but House leaders say
no revenue will be lost If Con-
gress waits until May or June to
extend the So per cent rate. be-
cause it can be made retroactive.
Must Act Soon.
The excise tax bill must pass
during. March because it extends
indefinitely about 81 billion of
taxes on alcoholic beverages, Gig
arettes, automobiles and parts
which would expire on April /.
Overriding administration de-
sires. the House Ways and
Means Committee also has writ
ten into this bill reductions In
other excise taxes which viii cost
the Treasury 1912 million or al
most as much as the extensions
will produce.