Evening star., 1962-08-30
Gore Critical
OF President
On Tax Bill
BY j. A. OLEARY
star staff Writer

Kennedy administration of
running out yesterday on its
own program for ending the
abuse Of deducting entertain
ment as b business expense on
tax returns.
Another administration pro-
posal to withhold at the source
taxes due on dividends and
Interest income also was
knocked from the tax revision
bill yesterday. 66 to 30. But
Senator Gore was not referring
TO this defeat because the ad-
miniStration has known for
weeks 1t had no chance of
saving that recommendation
after the Finance Committee
turned 1t down.
But the TenneSseean insisted
the White House could have
saved q stronger provision on
expense accounts by support
ing his effort to eliminate an
+. amendment he said will con-
tinue expense account abuses.
The Tennesseean was defeated,
81 to 80.
Recalling that the President
had asked in his state of the
Union message for tighter con-
trolls on entertainment deduc-
tons, Senator Gore charged
that yesterday the White House
took . defeat without q fight.
The Tennessee Democrat
listed three members of the
Democratic leadership-Sena-
tors Mansfield, Smathers and
Kerr-as having voted against
the administration on expense
accounts.
Senator Kerr, Democrat OF
Oklahoma, handling the tax
bill for the administration, was
optimistic today over the
chances Of passing it In the
Senate by tomorrow.
: After the Senate had refused |
to apply the withholding system
to dividends and interest, Sen
ator Douglas. Democrat Of Illi-
, nois, tried to have Withholding
abolished for wage earners. He
argued that II 1t Is not to be
applied to stockholders, all
should be treated alike. But
the Senate killed his amend
ment by tabling it, 50 to II.
Retirement Provision
The most serious threat to
early passage Of the bill is an
amendment Republican Leader
Dirksen will offer to let self
employed persons take a tax
deduction Of up to 81. $50 a year
for money set aside to finance
their own retirement.
Senator Dirksen said he
sees little chance Of finishing
the bill this week. He said he
is confident the Senate will not
table his pension amendment
and admitted opponents may
filibuster against 1t.
Senator Dirksen said he now
thinks October ! would be "an
optimistic guess" for adjourn
nlent.
Supporters OF the Dirksen
amendment say they have 70
votes. more than enough to pass
it on its merits. But Democratic
Leader Mansfield will try to
keep 1t off the tax bill by mov-
ing to table 1t. with a promise
to call 1t up as q separate meas
ure before adjournment.
Senator's may get q three day
recess for Labor Day If they
finish the tax bill tomorrow.
Otherwise, Senator Mansfield |
announced he will call o Sat-
ur6ay session.
Modification Possible
Senator Gore, although losing
the fight on expense account
deductions. got from Senator
Kerr an indication that the
item may be modified when the
bill goes to conference with the
House.
As the bill stands, it is not |
all that President Kennedy |
asked for, but administration |
supporters say its main feature |
the 7 per cent tax credit for !
investment in machinery and
equipment-will stimulate busi-
ness expansion.
A sharp exchange between
Senators Kerr and Lausche,
Democrat Of Ohio. enlivened
,today's debate. While the Sen
ate was considering q series Of
minor amendments intended to
grant special tax relief to in
dividual cases of hardship,
Senator Lausche protested that
the Senate should not tie these
relief provisions into q general
tax bill.
At the time the Senate was
debating q provision relating to
taxation Of q Minnesota bus
company, and Senator Lausche
said he would oppose it, be-
lieving 1t should be a separate
bill.
Lausche Amendment
Senator Kerr interrupted to
remind the Ohio Senator that
' the Senate had already agreed
; to another relief amendment
at the request Of Senator
Lausche. This amendment
would have given American
citizens owning property over
seas more time in which to
dispose Of 1t before it would
become subject to inheritance
taxes.
Il call attention to that fact
to show that the Senator from
Ohio is not always fighting for
application OF uniform laws
with reference to all" said Sen
:, ator Kerr.
Senator LauSche shouted
that he would mot be made
, to appear as q base individual.
He said that he had spent 30