Evening star. [volume] (Washington, D.C.) 1854-1972, 1955-03-06
Foes Of $40 Tax Cut
Rally Senate Forces;
Floor Debate Nears
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sponsibility for it happening" he
said.
6. Senator Long. Democrat. of
Louisiana. acknowledged that
right now I suspect we are a
few votes shy OF what We need"
in the Senate to get the tax cut
approved. He denied reports that
its supporters we're stalling to
keep the bill from coming up on
the Senate floor soon. He added
but we do want some time to
get together the facts and figures
upon which we buttress our
case"
Z. Senator Ellender. Democrat,
Of Louisiana. last night Joined a
growing group of fellow Demo-
Gratis opposing the $40 tax cut.
In a statement prepared for
radio broadcast in Louisiana. the
Senator said he is convinced the
people would lose money in the
long run because the inflationary
effect Of such a tax cut while the
Government is in the red would
cause further shrinkage in the
purchasing power of the dollar.
Taxes Go Down April /.
It is generally agreed that if
the corporation income rate
dropped April / from So to Al
per cent through failure of the
two houses to agree on the pend
ing extension bill, the higher
rate could be restored later with
no loss of revenue.
But if the excise levies on alco-
holic beverages, tobacco, auto
mobiles, trucks and gasoline
should go back to the lower rates
April /, the Government would
begin to lose money Immediately.
Some lawmakers think it would
not be easy to get Congress to
reimpose the present rates after
even a brief lapse.
If a new tax bill is not passed
by April /, the excise rates would
60 down as follows:
On whisky, from $1,000 to SO
per gallon; on beer, from SO to So
per barrel; on cigarettes from 81
to $3.50 per 1000; on gasoline.
from 2 to IL cents a gallon.
Varying reductions also would
apply to wines.
The tax on manufacturers sale
price of passenger cars and mo-
torcycles would drop from 10 to
7 per cent. and on trucks. buses
and trailers, from 8 to S per cent.
No Date for Tax Debate.
There has been no formal
agreement on date to start the
Senate tax debate, but the Dem
ocrats on the Finance Commit
tee who favored the $40 cut have
until Tuesday to file their mi
nority report. It is expected that
efforts will be made to get the
bill up Wednesday.
Informed sources now believe
that at least 10, and probably
more. Democrats will support
the position taken by Senator
Byrd aaginst the $50 cut. If this
estimate proves correct. the
House cut would be beaten is
votes or more.
House Republican Leader Mar
tin has pointed to the possibility
that if the Senate sides with
President Eisenhower by reject
ins the $40 cut, the House could
avoid conference fight by vot-
ing to concur in the Senate
action.
That would require a reversal
of the 2l0 to 205 vote by which
the House originally approved
the reduction. Mr.. Martin in
dictated he thought opponents Of
the cut in the House had gained
some strength, but House Repub-
licans will wait until the Senate
acts before deciding whether to
try for another test vote in the
House.
Speaker Rayburn said he has
not heard of any losses on the
Democratic side since the House
voted for the reduction.