Show Conflicting Ideas Id as on Tax Reli Relief Must Not Rob P People ople of Any Relief at All AU With President Truman's adv advocacy acy of an individual income tax cut in his is State of pf f the Union message to co congress it Jt items i Beems ems certain that the overburdened American L. L taxpayer can look forward rd to some kind of f relief this y year year ar Just wha what hat t that at relief will b he be is o of course ourse still tm a moot question President Truman proposes a a. ki kind d of reduction which applies almost wh wholly lly to those with low incomes It ft is estimated that that 95 per cent of ui the tax reduction would go go to those with ith incomes inc mes under with approximately O J w inc income me taxpayers removed entirely from the tax rolls roUse No one denies that th those se with low incomes in- in in in- r eo comes es arc are In greatest need of relief They hey should be given lint first consideration There Is 15 however good good- reason to question whether tax relief should be granted only to this this' gr group up The in income ome tax burden burden burden bur bur- den on those with larger large incomes is to today today today to- to day 80 so severe that it is an efre effective deterrent to enterprise and initiative For instance a single man with a 30 30 income now has left after tax taxes s. s If it through increased effort and enterprise he increases his income to he gains gain only after taxes The government mak makes s' s almost twice as much from his increased effort and enterprise enterprise enterprise enter enter- prise as he do does s. s There is scant incentive there for the kind of work work and drive which makes the wheels of industry go round faster providing jobs and general prosperity The situation becomes even worse in higher earning brackets Mr r Truman's program likewise fails to correct the p present sent unfair tax situation situa situation tion ion between residents residents' of different states which results from community property laws A very considerable tax saving is possible for residents pr property prop perty p- p erty states tates tat s. s through division of income between husband and wife thus keeping in lower tax brackets This inequitable situation should be corrected All An American Amer Amer- ican jean citizens should b be on an equal basis when it comes coines to federal taxation regardless of where they chance to live Were We're glad to see Mr Truman recognize recognize nize the desirability of some individual j income t tax relief but we belie believe c his proposal proposal pro pro- is weak in these two respects The tax program by Representative Knutson the house Republican tax spokesman is far better from this stand stand- point The Knutson proposal would give very substantial tax relief f to those with lower incomes incomes incomes-he he says 77 per cent of the relief goes to those with incomes under yet ret yet it s still ill gives some relief relief re re- re- re lief to those with larger incomes and it likewise se ends the discrimination i in favor of residents of eo community property states Anyway it looks as if were we're going to have some of that tax relief everybody has been talking a about out for so long Republicans Republicans Republicans Re Re- publicans are for it Democrats in congress congress congress con con- gress are for it The president is for it All we have to do now V is work out a fair program program which will be ac acceptable to all It is the responsibility of congressmen of both par parties es and the administration to work out such a solution and not to permit clashing ideas on tax relief to rob the people of an any relief at all |