Evening star. [volume] (Washington, D.C.) 1854-1972, 1963-10-17
Democrat Hits
TaxCut Bill as
FaVOrinu Rich
By LEE NJ. COIN
star staff Writer

~ LII va SAA-N
star staff Writer
Senator Gore, Democrat of
Tennessee. charged today that
the Kennedy administrations
tax program violates Demo-
cratic principles and would
give the biggest breaks to-
wealthy individuals.
Instead of reducing tax rates
across the board. he said, legis-
lation should increase the $500
personal exemption.
Senator Gore said he will
fight as hard as he can to kill
the Administrators bill and
substitute increased exemp-
tons. He said this approach
would concentrate tax relief on
those in low-income brackets.
in line with principles Of social
justice"
The administrations pro-
gram, Senator Gore charged.
amounts to a reputation Of
the records of Franklin D.
Roosevelt, Harry Truman and
all the Democratic platforms Of
the past 80 years, including the
one Of 1860"
Policies Seen Subverted
He told Treasury Secretary
Dillon, who was testifying be-
fore the Senate Finance Com
mittee; II am amazed and
alarmed at the extent of your |
success in subverting the ira
ditional liberal economic poll
cies Of the Democratic Party"
He added:
when the country votes
conservative, it votes Republic
can; I don't know If that would
please you or not"
Mr.. Dillon is a Republican,
and Senator Gore recalled that
he had opposed his appoint
ment by President Kennedy as
Secretary Of the Treasury.
Senator Gore charged that
Mr.. Dillon'S total program is
not stimulative and expansive.
but restrictive and repressive."
On the question of personal
exemptions, Mr.. Dillon said an
increase from $500 to $1,000
would cost the Government |
more than the S1l billion rev.
enue loss Of the administra-
tiop's bill.
Approach Criticized
Moreover, he commended, this |
approach would be inequitable
and ineffective. and would fail
to stimulate business invest
ment.
Senator Gore directed his
main criticism at the admins
tration's decision to try to
stimulate the economy and re-
duce unemployment through
tax cuts rather than by in
creasing Federal spending.
He said Federal public works
programs and the area redevel-
opment program are cheaper
and more effective in combat
ting unemployment.
He said such programs can
be specific and can direct as
sistance to areas and industries
needing help most, while tax
reductions provide relief in a
scatter gun" fashion.
More Spending Urged
Because Of the tax cut bill, !
Senator Gore said Congress Is
in the mood to cut appropria-
tons. He quoted a Democratic |
leader of the House as saying
that the tax bill has created a
political atmosphere that will
make it impossible to pass
legislation to extend area re-
development and accelerated
public works programs this
year.
The economy's real need,
Senator Gore said, is for in
creased spending by the Gov
eminent, not increased income |
for private individuals and
businesses.
Mr.. Dillon agreed that the
administration is putting
greater emphasis on the pri-
vate sector of the economy and
less on Federal spending.
But this does not mean. he
said, that Federal programs
will be neglected. He said the
economy needs both tax re-
auctions and such programs as
area development.
To achieve needed stimula-
ton of the economy on a ma
tional basis through public
works, he said, the Government
would have to spend close to
$40 billion.
Produces Figures
If the administration insists
on cutting taxes instead of in
creaSing spending, Senator
Gore said. the tax bill is the
wrong way to do it. He pro-
duced figures designed to show
that the bills rate reductions
would increase after-tax in
come much more for wealthy
individuals than for those in
loW-income brackets.
Mr.. Dillon replied that Sen
ator Cores figures are "out Of
kilter."
Senator Gore charged that
Mr.. Dillon has given up too
easily in his campaign to close
tax "loopholes" benefiting
wealthy individuals. Mr.. Dillon
replied that he has fought as
hard as he could in this area
and has made substantial
progress.