Evening star., 1955-02-27
$40 TaxCut
Hard 10 Defeat,
rdConcedes
Bill Coins Support
Due to Congress Pay
Raise, Senator Adds
BY the Associated Press

BY the Associated Press
Senator Byrd, Democrat of
Virginia said yesterday an i'm
pending congressional pay in
crease may make it more diff
cult to defeat a $20-a-person
cut in next years income taxes.
The House voted for the tax
reduction yesterday and sent
the legislation along to the
Senate.
Senator Byrd opposes the re-
duction. But he said the fact
that both Houses have voted to
lift members salaries from $15,-
900 to at least $22,5 500 is being
used to line up Senate support
ers-particularly among Demo-
crats--for the income tax re-
duction.
The Senate sent the pay bill
to a conference with House
in a move to strike out
a $3.50 tax-free allowance.
Final action on it may come this
week.
May Set Precedent.
So far as he is concerned,
Senator Byrd said he is just as
opposed to the tax cut as he was
to the salary increase.
"If this $40 proposal is voted
by Congress it will set prece-
dent for lump-sum tax CUTS" he
said. Next year somebody will
propose a $50 cut and it won't
be long until somebody else ad-
vocates 500. That is no way to
handle tax legislation"
Senator Byrd. who heads the
Senate Finance Committee, said
he remains confident that group
will strike the $40 provision out
of a bill which also would con-
tinue corporation and excise
taxes at present levels instead
of permitting them to drop next
April /.
But Senator Kerr, Democrat Of
Oklahoma, said he thinks the
issue is touch-and-go within the
committee. He added that much
may depend on the attitude Sem
ator George. Democrat of Geor-
gia. finally takes toward the $40
proposal.
Calls For New Canvass.
Senator George, who previ-
ously had observed that the tim
ing of the proposed tax cut was
Hunwise and unfortunate" called
for a new canvass of the situa-
ton in the light of the 242-175
House vote for passage Of the
tax legislation.
The Georgia Senator said he
is worried lest the House refuse
to accept a narrowed measure
providing only for extension of
the corporation and excise levies
which raise about So billion in
revenue yearly.
He said he doesn't now believe
the House will reverse the 210-
205 vote by which it nailed into
the bill a proposal to give each
taxpayer and each of his de<
pendents an automatic $40 tax
cut in 1856. This reduction could
be expected to cost the Treasury
$22 billion over a full year.
Working On Substitute.
Senator George disclosed that
he is working on a substitute
proposal for the $40 tax cut
which he said lis something that
might compromise all the differ
ences" over the bill.
Senator George declined to
elaborate except to say that his
proposal, which he said would
lay before the finance Commit
tee tomorrow wouldn't lose any
revenue"
In an obvious reference to
statements of House Speaker
Rayburn that Republicans would
live to regret their charges of
"irresponsibility, black-jacking
and vote buying" Senator George
said that the whole matter had
become "a matter of pretty in
tense feeling on the part of some
people"
1T is highly important that We
continue the corporation and
excise taxes" Senator George
said. otherwise we would double
the anticipated deficit. the
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