Evening star. [volume] (Washington, D.C.) 1854-1972, 1958-07-30
House Ignores
Blasts al Tax.
Relief Moves

ny AVMEMA n WALSH
~ . altar stan writer
The House seemed unmoved
today by some charges that
bills providing more than 81
billion IN tar relief and q meas
ure 10 increase social security
benefits are innationary, un-
tim ely. discriminatory and
mainly for election-year pur-
poses.
The bill for a 7 per cent boost
In old age and survivors insure
ance benefits. along with high
er payroll taxes on employees
and employers. comes up for
four hours Of general debate.
probably tomorrow. With sur
prising ease 1t was cleared by
the Rules Committee late yes
terday. despite admitted con-
fusion over It's intricate pro-
visions and questions about It's
possible effect on the national
economy,
Pass Tax Relief hin
The House at the same time
passed in less than a half-hour
and with only q few noes on a
voice vote. q bill 10 give tax
relief 70 self-employed persons
by permitting them TO defer
payment Of some Federal In
come taxes.
A doctor, farmer or business
man. for instance, could put
on until the age Of IS the pay
ment Of taxes on as much az
$500 Of his annual income II
he placed that amount in a
special retirement fund. He
would be subject to income
taxes on that money when
drawn out In annulties. But his
overall income at that time,
presumably would be smaller
and in a lower tax bracket.
Despite Treasury Depart
ment opposition and estimates
Of a $685. million annual loss
in Federal tax revenue, passage
of the bill was urged by Ways
and Means Committee Chair
man Mills. Democrat Of Arkan-
sas. and Representative Reed
Of New York. the committees
ranking Republican, and many
others. 1t was introduced by
Representative Keogh, Demo-
crat Of New York, and Jenkins,
Republican Of Ohio.
Differ on Bill
Mr.. Keogh said the bill was
timely because ut is time to
correct inequities." He noted
that existing law gives tax de-
ferment privileges to employed
persons covered by company
pension plans. Representative
Byrnes, Republican Of Wiscon-
sin. the only member to speak
at length against the bill yes
terday, conceded that some in
equities exist but he said many
other persons do not have such
tax deferment opportunities.
Mr.. Ktogh contended the bill
was in no sense "class legisla-
ton" because there are more
than i've million self-employed
persons.
Corridor and committee
room criticism. however,. con-
tinues on what some members
Informally describe as o tax
relief legislative trend that has
picked up speed as congress
sional adjournment and the
election campaign draw near.
Repeal Freight Excise
One of the first breaks in
the earlier policy Of holding
the line against tax cuts oc-
Cured when House and Sen
ate agreed on repeal of the
excise tax on transportation of
freight, coal and oil. That will
cost the Treasury about $485
million a year, according to
committee estimates.
The House last week APP
proved a small business tax
relief bill that could cause a
$3.50 million revenue decrease
Pending in the House is a bill
to give an estimated $50 mil
lion in tax relief to workers
under the Federal Railroad
Retirement Act.
The Social Security Act
amendments in the bill re-
ported out by the Ways and
Means Committee and cleared
by the Rules Committee would
not affect the general Federal
tax structure.
Representative Delaney,
Democrat Of New York, a
Rules Committee member, said
at the hearing yesterday, how
ever, that he feared the pro-
posed increases might contrib
ute to imitation. Several other
members indicated they were
disturbed by an added pro-
vision to increase Federal sub
sides for needy persons on
State-cperated public assistance
rolls. This would cost about
$3.50 million a year.
Mr.. Mills told the Rules
Committee that the bill, far
from being infiationary, was
designed to assure stability Of
the social security system. He
said it thus is an "anti-infia-
ton measure"