The journal. (Caldwell, Ohio) 1934-1961, 1957-06-20

Mil ID, Ark)
begins hearings this week on your
tax bill for next year
The subcommittee expects to
hear tax testimony by numerous
experts on how, where and when
TO reduce taxes. Although 1t has no
specific tax bill before it, the Joint
Congressional group expects to re-
port to Congress before the end
of June.
By the end Of this month, 1t is
expected. the Appropriations Com
mittees will have paved the way
for tax cuts by looping some SO
billion off of President Eisen-
hower's original S7l.8 billion 1858
budget.
Two big questions will remain to
be answered. who gets tax relief,
and when? There are all sorts Of
proposals as to who should be first
in line for tax reduction. Then,
there is the question of whether
to pass tax law this year, or
wait until next.
The hearings will tackle the
entire budget taxes topic by cover
ing four main subjects: The cur
rent economic situation and pros
poets for the future: the effect
budget cuts on government spend
ing; government fiscal control
policies: and the timing Of tax
reductions.
Hearings are scheduled to wind
up late next week with testimony
from Treasury Secretary Hum
phrey, Federal Reserve Board
Chairman Martin, and Budget
Bureau Director Brundage.
The most authentic estimates we
have seen indicate the Treasury
expects to collect about STA billion
In taxes this year. X the budget
is cut to 500 billion that would
permit a maximum tax reduction
of SIS billion
Congress is not likely to cut 1t
that close, however Treasury ex-
pertS have cautioned Congress that
, the maximum reduction could, If
there is even a slight business re-
cession, throw the government
deeper into the red next year
There is some support for an
across the board so tax reduction.
- effective next January / That,
i however, doesn't seem to be the
majority view. Selective tax cuts
here and there appear to be more
probable
There are more than 100 tax
bills before Congress now, and
they offer more than 100 ways TO
cut taxes Mills. however, says his
subcommittee will not DE geared TO
producing specific legislative rec
ommendation."
Since this Is joint committee,
made up Of both Senators and
Representatives, 1t cannot write
and report a tax bill All it can
@' do is point out some OF the things
that could be included, If other
committees decide TO write a bill
- There were, at last count, 81
- bills to raise the personal eXemp-
: ton from the present 5000 to any
where from S700 to 81 900 Mills
says this Is one of the proposals
to which the subcommittee will
give consideration.
There are all sorts Of specia
interests clamoring for a tax cut
Big business and little buslnes!
both plead the need for tax relief
Whatever happens, though, Con
gress isn't likely to leave tndivid
s uals out in the cold in an election
year.
The first question to be decides
will, however, be whether to G
ahead this year with a tax reduc
- tion to be effective next Jan /. O
to wait until next gear and max
any reduction retroactive to jar
].
Democrats, generally. favor goin
g ahead now with tax cuts for 1885,
They say that If they don't pas
tax legislation this year the Presi
dent will recommend reduction
next January, and that Republ
cans would claim credit In tt
election campaign.
Both parties agree that a ia
reduction is due, but each wan
to make sure 1t gets credit X
making 1t.