Evening star. [volume] (Washington, D.C.) 1854-1972, 1955-09-04
Reed Doubtful
If Income Tax
Cut Is Feasible
New Yorker Cites
T.. Initiation Danger,
Military Expense
By the Associated Press

Hhsbt0s 6APS"SS
By the Associated Press
Representative Daniel A. Reed.
Republican Of New York. raised
Ia big caution signal yesterday to
Republicans and Democrats who
have spoken hopefully Of income
tax cuts next year.
Citing dangers of imitation and
a need for continued high mill
tary spending. Mr.. Reed said
such talk is premature and may
be "overly optimistic"
His go-slow statement was MIR
Reeds first comment after
months Of recovering from an
illness. AS senior G. o. P. member
of the tax-writing House Ways
and Means Committee, the 79-
year-old New Yorker is a lead
ing Republican spokesman on
tax questions in the House.
Declares Caution Needed
Mr.. Reed noted that 1856 is
an election year and "as q re-
suit it is to be expected that
tax reduction should play an
important part in political
thinking" He added:
II hope that tax cuts do In
fact prove feasible and appro-
PIRATE. Certainly the Taxpayers
of this country deserve such a
reduction at the first safe op-
Iportunity.
ION the other hand, I know
that the American people would
not favor placing political ex-
Ipediency above either the mill
|tary security or the economic
stability of the Nation. believe
a word of caution is in order at
this time"
Mr.. Reeds statement appeared
aimed at taking some OF the glow
of tax-cutting talk which sprang
up after Secretary of the Treas
|ury Humphrey announced his
revised budget estimates for the
fiscal year ending next June 80.
Deficit Is Indicated
The new estimate indicated a
SIT billion deficit. reduced al
most 80 per cent from last JAM
uary's calculations, and Secre-
Itary Humphrey said that with
reductions in spending and con-
|tinued high prosperity the bud
get could and should be balanced
by next June.
Mr.. Humphrey himself said it
was too early to talk about tax
cuts, but many congressman
took the improved budget picture
as u signal to drive for a big in
come tax cut.
MIR. Reed declared:
THE heartening prospect Of a
balanced budget has already
given rise to announcements by
leaders within both parties that
there should be further substan-
|tial tax cuts next year. While
I am in complete sympathy with
this objective. / believe that such
statements made months in ad-
vance OF the next session OF
Congress are premature :.
"A balance budget and con-
tinued reduction in Federal
spending can only be predicated
on the assumption that there
will be no worsening of the in
.ternational situation
Soviet Intentions Uncertain
Until the Soviet leaders back
uA their protestations of friend
Ily intentions with definite. con-
crete evidence of their willing
ness to seek a peaceful solution
Ito international tensions, the
American people must maintain
Ia healthy .Skepticism toward
what may prove to be only
another propaganda trick. In
the meantime. there is little
Immediate prospect of any sub
stantial reduction in our mill
tary expenditures. Until that
day comes, we should not be-
come overly optimistic about
substantial tax cuts"
Mr.. Reed said he fought for
tax cuts in 1853 and 1854 when
the economy was showing signs
of a downturn and needed a
stimulus. He said tax reductions
in 1854 are entitled to a major
share of the credit for our eco
nomic growth" Then he added:
To-day, however, certain in
flationary pressures are again
apparent. The cost of living has
begun to edge upward in the
wake of wage and price in
creases."