Show House Republicans Kill Kil I Treasury Tax Plan WASHINGTON Oct 19 UP Republican P-Republican members of the tax-framing tax house ways and means committee took a solid standI stand Tuesday against any further federal taxes on individual or corporate corporate cor cor- I I cor-I incomes in in effect killing outright the administrations administration's new tax pro proS gram In a statement issued by Representative Representative Representative Knutson R R. Minn the Republicans proposed a program of government economy economy Instead of further tax increases The statement made no mention of sales tax proposals but one Republican Republican Republican Re Re- publican member said That issue is dead lead Seen a as Death Blow v said s his statement was issued on behalf of the 10 Republicans on the member 25 ways and and means committee In view of known opposition on by bya a bloc of Democrats to the administrations administration's administrations administration's admin admin- program program which proposes proposes proposes pro pro- poses increases in individual and corporate income tax rates and larger excise levies the Republican can statement was viewed as dealing dealing deal deal- ing the death blow to the program The treasury has failed to justify justify justify jus jus- its proposal to add an additional additional addi add to our tax load the statement said On On the theother theother theother other hand witness after witness has shown conclusively that an increase increase in increase in- in crease in taxes at this time would probably undermine our whole economy We do not wish to assume the responsibility for doing anything that will weaken the nations nation's war var effort or make harder the trem tremendous tremendous tre tre- tre- tre m task of of industry when the he war war is over From the inflation standpoint we believe that the further tax increase would be inflationary in itself since it would Inevitably leac to a demand for higher wages to meet neet the increased tax burden Thus the vicious spiral would con con- Raises Serious Doubts The statement raised serious doubts that con congress ess would be able to produce a tax bill embracing even half of the amount recommended recommended recommended mended by the treasury The Republican Republican Republican Re Re- publican statement left the way open for support of some Increases in n excises on cal so called so ed luxuries es Turning to its proposals for economy as an an alternative for further urther increases increases jn In n taxes the Republicans said aid The president sho should ld forthwith proceed to to set government fi finances finances finances fi- fi nances In order by effecting needed needed need need- needed ed economies economics in expenditures which would obviate the necessity for an equivalent amount mount of borrowing borrowing borrowing bor bor- rowing and therefore of taxes Let him without delay sever from irom the government pay payroll roll the whom Senator Byrd D D. Va chairman of the foint committee on nonessential federal expenditures has said can be bt removed without in any way impairing the war var effort We likewise Vise recommend that the president study the possibility of eliminating waste and extravagance gance r.-ance in military expenditures Representative John Taber of New NewYork NewYork NewYork York ranking Republican member member member mem mem- ber of the committee on appropriations has pointed out how a a. anet anet net savings of bor or more snore can be made without in any anyway anyway anyway way reducing the production of implements and munitions of war war |