Evening star., 1955-02-22
Tax Cut Move
kayDraw Blast
By Eisenhower
Press Session Stond
Hinted; Democrats
Foee Hard Fight


speak out strongly against the
acknowledgements proposal
for a $20-a-head personal in
come tax cut at his news con-
ference tomorrow morning, il
was indicated at the White
House today.
The President discussed the
tax situation in a conference this
morning with Republican Senate
and House leaders who told re-
porters afterward they believed
the Democratic proposal should
not be passed. The cut was ap-
proved by the House Ways and
Means Committee yesterday, Is
to 10.
House Republican Whip Arends
said he was against the tax cut
move now because lit smacks Of
politics 100 per cent"
Revenue Loss Cited.
Senate Republican Leader
Knowland said he opposed the
measure because of the $2.3 bill
lion loss of revenue to the Gov
ernment involved.
Senator Knowland refused to
discuss how Mr.. Eisenhower feels
about the tax cut proposal, but
told reporters he believes the
President will make his views
very clear within the next few
days"
Asked what that, might mean,
White House Press Secretary
James c. Hagerty reminded re-
porters that the President. has
scheduled news conference at
10:30 am. tomorrow.
Democrats Tighten Lines.
Meanwhile, House Democrats
frightened their lines and re-en-
forced their arguments for a
hard fight in the Rules Commit
tee tomorrow and a close vote in
the House itself on Thursday.
Sponsors of the $40 tax credit
for each taxpayer and depend
ent beginning next January /
rolled over administration pro-
tests vehemently voiced yester-
day by Secretary of the Treas
ury Humphrey.
The 25-member Ways and
Means Committee-with IA Dem
ocrats and one Republican for
the proposal and nine Republic
cans and one Democrat against
it-approved the proposal. The
committee also approved pro-
visions. originally recommended
BY President Eisenhower, to con-
tinue for another year the So
per cent corporation income tax
rate which otherwise would drop
to ~ per cent April /, and like
wise extend present excise tax
rates ON alcoholic beverages,
cigarettes, gasoline. automobiles
and a few related items.
Seeks "Clean" Bill.
Ways and Means Chairman
Cooper. Democrat. of Tennessee,
planned to introduce a clean"
bill when the House convened
today mainly for the reading of
Washingtons Farewell Address.
In the outSpoken opinion of
committee Republicans. notably
Representative Reed of New
York, the measure is anything
but clean" with an income tax
cut rider. -.
The next hurdle for the Demo-
crats-and it may be high
one-iS to get Rules Committee
clearance tomorrow. They hope
the bill can be debated for four
hours Thursday in the House
under a closed rule banning
amendments other than those
presented by the Ways and
Means Committee.
Representative Smith. Demo-.
crat, of Virginia. who heads the
Rules Committee of eight DEM
ocrats and four Republicans, told
reporters he personally does not
favor an income tax reduction
at this time. He did not say
specifically. however, that he
would vote against clearing Mr..
cooper's bill with the tax credit
amendment presented by Rep
resentative Mills, Democrat, Of
Arkansas.
May Be Blocked.
Opponents of the proposal
said it could be blocked in the
Rules Committee tomorrow II
(See TAXES, Page A-8.)