Evening star., 1960-06-19
Tax Bill! Fight
Slows Senate
Drive 70 Quit
BY J. A. OTEARY
Star Stan Writer

0lhE 0lAn WTlJer
A fight over tax reform
slowed down the adjournment
drive in the Senate yesterday,
but leaders still hoped to wind
up the session during the week
of July 4.
After passing six major bills
on Thursday and Friday, the
Senate struck a Snag yesterday
on the bill extending 81 billion
of Korean War tax rates and
gave the Treasury another
temporary increase of So bill
lion in the $285 billion national
debt ceiling.
Calling attention to a list
of at least 20 major issues still
awaiting action, Democratic
Leader johnson of Texas tried
to persuade the Senate to dis
pose of the tax bill yesterday.
AADCA AIS 7 ldn OduCuS
But a group of liberal Demo-
Gratis sought to delay action
until tomorrow or Tuesday to
get a party caucus on their
proposals to raise more revenue
by closing what they regard as
loopholes in the taxing of cor
porationS and stockholders.
The Senate took time out,
however, to pass more than so
minor relief bills.
Most of yesterday afternoon
was taken up with debate on
one amendment by Senator
Gore, Democrat of Tennessee,
which he said could save the
Treasury as much as $500 mil
lion. 1t would apply depletion
allowances on minerals only to
the raw materials taken from
the ground and not to the
finished products.
After several hours of debate,
Senate Democratic Leader
johnson got rid of the Gore
amendment by moving to table
1t. The motion carried SO to 26.
But the chair had ruled that
adoption of the Gore amend
ment would also have approved
repeal Of the telephone and
travel taxes because Senator
Gore had tied his amendment
to the repeal section. Some
Senators indicated they voted
to table because of this ruling.
This prompted Senator Gore
to announce he would offer his
amendment again as a sepa-
rate proposition before the bill
passes.
Other amendments are pend
ing to repeal the 4 per cent
credit allowed stockholders on
their dividends, to reduce the
oil depletion allowances on
large producers, and to curb
the deductions corporations
may make for entertainment
ds a business expense.
Clark Leads Group
The liberals, led by Senator
Clark. Democrat of Pennsyl-
vania, contend Congress should |
raise more tax. money through |
these changes to meet the in
creased appropriations this
Congress is voting for national
defense, Government salaries
and other purposes.
They also argued that this .
new revenue would help replace |
the more than $3.50 million
that would be lost by the rec
omendation of the Finance
Committee for repeal of the 10
per cent tax on travel tickets,
local telephone bills and tele-
grams.
There were reports yesterday
that If the Senate does not |
raise new taxes, it may reverse
the Finance Committee by not
repeating the travel and COM
munications taxes.
Finance Committee Chair
man Byrd, Democrat of Vir-
ginia, who opposed repeal of
these taxes, read to the Senate
yesterday a letter from Treas
ury Secretary Anderson, urging
the Senate to pass the tax bill |
as it came from the House. |
This would mean extending
existing taxes as they are and
raising the debt ceiling to $293 |
billion for the coming year.
If Congress is going to close
up shop before the July poll
tical conventions, both Houses
will have to move at top speed |
for the next two weeks.
The major issues in the
home stretch drive are the
foreign aid appropriation bill, |
Federal aid to school construc-
ton, medical care for the aged
and Improvements in the min
imum wage law.
Aid Bill Pushed
Senate Republican der
Dirksen said a strong effort will
be made to have the Senate
increase the $3.5 billion House
figure for foreign aid, closer to
the SAL billion requested by
the President.
The House will act this week
on a series of social security
amendments, including a med
ical care program for the
aged patterned after the ad-
ministration plan of state con-
trolled aid with federal grants.
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