Evening star., 1955-01-23
Democrats Assaiied
By Reed for Insisting
On Tax Cuts in 1855
By Robert K. Welsh

By Robert K. Walsh
House Democrats talking Of
possible attempts to cut taxes
this year were accused yester-
day by Representative Reed. Re-
publican of New York, of "un-
pardonable responsibility" He
warned that such bill would
''run into a certain presidential
veto"
Mr.. Reed, ranking minority
member Of the House Ways and
Means Committee that handles
taxation measures, thus emerged
as a major champion of the
Presidents plea to hold the line
on taxes in 1855. AS chairman
of that committee two years
ago, Mr.. Reed waged a vigorous
but unsuccessful fight for tax
cuts then opposed by the ad-
ministration.
The President in his tax and
economic messages to Congress
last week held out the hope
Of q modest" cut In taxes in
1856 II the budgetary situation
improves.
Several House and Senate
Democratic leaders have indi-
Gated they would go along with
him for continuance Of various
excises and corporation income
tax rates otherwise scheduled to
decrease April /. and for avoid
ance of other tax reductions at
this time.
But some Democrats on the
Ways and Means Committee are
known to favor passage Of bill
this year either to increase indi-
vidual income tax exemptions or
lower such tax rates.
Charges Political Jockeying."
One member said privately
that such a bill, even If pro-
viding for cuts to take effect in
1855, should be put through at
this session. This could assure
the Democrats prime credit for
any tax cut that might occur
during the Eisenhower admini-
stration and before the 1855
presidential elections. he re-
marked.
Mr.. Reed denounced such ideas
as political jockeying." He at
tributed them mainly to certain
Democrats who for political
reasons hope to embarrass the
President"
IF they persist in their threats
to scuttle the administrators
tax program, he warned, "they
will run into determined oppo-
sition from Republicans and
many Democrats who place the
fiscal solvency Of the Nation
above political jockeying."
He predicted, moreover, that
even If they succeed in getting
Q tax-cut bill through Congress
this year it will be vetoed by
the President and the vote will
be upheld by sufficient votes
In both houses of Congress to
defeat such irresponsible legis-
lation."
Mr.. Reed said he agreed with
the President that the fiscal state
OF the Nation precludes another
tax reduction until next year.
He also concurred In the Presi-
dents belief that q further tax
cut might be possible next year
II present tax revenues are kept
intact.
Praises Administrat tion.
His stand yesterday for the
Presidents tax policy. as well as
his record Of cooperation with
the administration last year, in
dicated that he harbors no AMI
mostly as a result Of defeat in his
battle with the White House two
years ago.
On that occasion he sought
elimination Of the excess profits
tax, which the administration
wanted continued for another
year. and for q cut in personal
income taxes. Those taxes sub
sequently were eliminated or de-
creased.
This administration" Mr..
Reed said yesterday" has every
reason to be proud Of its out
standing achievements in behalf
Of the American taxpayer who
received no consideration under
previous administrations during
q 20-year period.
"The New Deal and Fair Deal
were constantly riding on the
taxpayers back. That trend has
been reversed. We have given
and will give further tax cuts
when the fiscal situation permits.
You have the Presidents word
for 1t. You have my word for It,"
Thn Mon4ha,