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Show internal nternal Revenue Es Is iternal Eternal Problem P ruble @ Income Tax Spectre Haunts HauntsNext HauntsNext HauntsNext Next Session of Congress CongressBy By BAUKHAGE BAUKHAG BAUKIIAGE BAUKHAGENiws BAUKIIAGENews N Niws News ws Analyst Anayd Anaydlnd ! / and /lnd lnd Commentator Commmtator CommentatorWASHINGTON CommentatorWASHINGTON fall and the last tat tattered tattered tattered WASHINGTONIt WASHINGTON -It It - It is a cloudy day , otherwise otherWlse bare barebranches barebranches barebranches fluttering fluttermg nervously on tered brown leaves are to make the plunge plungenow plungenow plungenow branches , , wondering wondenng whether it is better now or wait walt for more favorable breezesAbout breezesAbout breezes breezesAbout About the same thing is going on in an old colonial mansion on Con Connectlcut Connecticut Connecticut nectlcut necticut avenue where beneath those high ceilings and once arIstocratic arIstocraticsurroundIngs aristocraticsurroundings aristocraticsurroundings surroundIngs RepubUcan Republican national committee typewriter tpewntera typewriters ) * are clicking clickingmimeographing clickingmimeographing clickingmimeographing mimeographing machines are whir whirring ng and sweet telephone bells ' jangle 'angle angle out of 01 tune time tuneParty timeParty tuneParty Party leaders like the uncertain uncertainleaves uncertainleaves uncertainleaves leaves are wondering wondermg whether the thetwice thetwice thetwice twice vetoed tax bill bl1 ! carefully careul1y ! re- re reupholstered reupholstered re-upholstered re upholstered - - upholstered and furnished furmshed with withwhat withwhat withwhat what they hope in m non bounceable bounceableequipment bounceableequipment bounceableequipment equipment , , will bring in m the votes votesthis votesthis votesthis this time tlme tlmeDown timeDown timeDown Down the block and acr6ss acrOss the thestreet thestreet thettreet street in lD m an office building bUlldmg where wherethe wherethe wherethe the plaster on thewalls thewalls the _ walls is hardlydry hardlydry hardly "dry dry " dry sit st ! their opposites opposites op- op opl - - l lposites posites membersof membersT members T jof of the DemocratlC Democrat J x Vic lC is nahona national ] commlttee corn com coin | t ts tmittee s mittce mlttee mittee in their theirbrand theirbrand theirbrand brand new quar quarters quartens quarters ters tens They are arehopefully arehopefully arehopefully hopefully pre predlctlng p predieting r e edieting dlctlng dieting that anyeffort any anyeffort t teffort effort to make makethis makethis makethis this tax reduc reducbon reduction reduction bon tion bill a law lawwhen lawwhen lawwhen when the world worldIs worldis worldIs Is trembling on onthe onthe onthe the edge of dlS dis dlSaster disaster disaster aster will boom Baukhaee Baukhage erang erangDemocrats Democrats say that if it a tax re reductlon reduction reduction ductlon duction bill should pass is vetoed vetoedand vetoedand vetoedand and the veto overridden what it itdoes itdoes Itdoes does for the folks foks ] with over $5 5 $ $ 000 000lIlcome 000income 000income lIlcome income a year will be balanced of off offby offby ! by what it doesn doesnt t do for the folks folksbelow folksbelow folksbelow below that income bracketYou bracket Sou You remember the 'orlgmal orlgmal briginal 'orlgmalbill briginalbill ' torlcmalbill bill (11 11 ( H n R I 1 1) 1 ) the first bill IDto into IDtothe intothe intothe the house hopper Jannar } ) 3 31917 1947 At that time Democrats Democratsla Democratslabelled Democratslabelled la labelled belled it the 10 20 30 b II ll IIchurned llclaimed Uclaimed churned claimed K It would save the man manwith manwith manwith with two dependents and Ss S * ? 500a 500a 500 a } ) car ear income IDcome only 59 cents a * aweek aweek week while it would save lhe the lheman theman theman man with a $100 100 $ 000 year yearl ! > ) in 10- 10 in- 10come income income - come $250 250 $ a weekBut week weekBut But that tax reduction b U II ll and a alater alater alater later one substantially substantlaJIy the same samewere samewere samewere were squashed by pres dential denhal veto vetoand vetoand vetoand and congiess congress congl ess upheld the veto But Butnow Butnow Butnow now the possibility POSSlbll1ty of somethln something somethingnew somethinnew " , , new ( and very attractive attracbve ) has been beenaddedA beenaddedA beenadded added-A added A - A community commuruty property tax taxprOVISion taxprovision taxprovision prOVISion for every taxpayerBnefly taxpayerBriefly taxpayer taxpayerBriefly Briefly Bnefly this means that a husband husbandand husbandand husbandand and w wife e may divide their mcome Income mcomemto Incomeinto incomemto mto into two equal parts computing computmg lhe the lhetax thetax thetax tax on each of those parts and mul rnul mulbpI rnultiply multipping bpI tiply ) mg ing by two This naturally cuts cutsthe cutsthe cutsthe the total amount of tax to be paid paidUnder paidUnder paidUnder Under present tax schedules tor for ex example example example ample the tax on two ) joint Jomt oint incomes incomesof of $ $50 50 $ 000 each comes to less than thanthe thanthe thanthe the tax on a $100 100 $ 000 net income mcome be because because because cause of the steeply g aduated sur surtax surtax surtax tax ratesGOP rates ratesGOP GOP Confident Confidentof ConfidentOf I Of Bdl Bill's Bills ' , PassageThirteen Passage PassageThirteen Thirteen Tillrteen states - Oregon Wash Washington Washington Washington ington California Cahforrua New Mexico MexicoAnzona MexicoArizona MexicoArizona Anzona Arizona Nevada Idaho Texas Ok Oklahoma Oklahoma Oklahoma lahoma Louisiana Nebraska Mlch Mich Mlchigan Michigan Michigan igan and Pennsylvania Pennsylvama - already alreadyhave alreadyhave alreadyhave have community commuDlty property tax pro proVISIOns provisions provisions VISIOns So has Hawaii Hawau The pro pro- proVISion provision provision - - vision if i1 11 msertedm insertedin inserted mserted m in a federal tax taxbill taxbill taxbill bill . would ould put citizens of the other other35 35 states on the same basIsThe basisThe basis basisThe The money savings under the thecommuruty thecommunity thecommunity commuruty community property tax elause clause elausewould clausewould clausewould would not benefit beneflt those married cou coupIes coupies eoupies pIes whose combined combmed net income IS ISless isless isless less than $3 3 $ $ 000 because the rates ratesdon ratesdon ratesdon don t change up to that point paint That Thatis Thatis Thatis is why opponents say this tills commu commuruty commumty community ruty mty property tax proposal too IS ISaimed isaimed isaimed aimed at saving savmg money tor for the big bigger bigger bigger ger taxpayers and doesn t help out outthe outthe outthe the little l1ttle fellows ( although the tax taxadvIsor taxadvisor taxadvisor advIsor to the ways and means com corn commlttee cornenittee cornmittee mlttee enittee tells me that neither would wouldany wouldany wouldany any benefits accrue under th s pro proVISion provision provision VISion to the married couple whose whosecomb whosecomb whosecomb comb ned income mcome is $5 5 $ 127000 l27 127 000 a ayear ayear ayear year ) But Cut the Republicans Repubhcans feel sure that surethat this proposal would could ould carry a tax atax Theyclaim reduCl reducine reducing g bill through They claim many Democrats living hvmg In Inslales instates inttates slales states contiguous to the commUOIty cornmunity corn com mUOIty munity " unity property tax states stateswould stateswould stateswould would wouldhupport wouldbupport Mipport hupport bupport itHere It ItHeres Here Heres s the way Democrats view viewthe the s tuat onThey on onThey billm They know that the last iast tax bill m ght have been passed theveto thevelo over the velo veto some say it certa nly my could couldhave includedthe meludedthe have been passed had it meluded included the comnunity coml1uruty comr-iumty comr iumty " ' - property tax provi prove provision provislOn slOn 5100 They are not a fl fi ppant about the theRepublicans theRepubhcans Repubhcans Republicans ability abll1ty to muster the necessary thenecessary t vo thirds vote this time timeto to override a vetoBut vetoBut veto vetoBut But Democrats nourish this bope hope hopeThat bopeThat That if it tax debate is insisted mslsted upon before uponbefore the question of o1 lower prices pricesand pricesand pricesand and European aid ( including includmg the thelong long range Marshall plan as weU well as asemergency asemergency asemergency emergency aid ) is settled the public publicwill publicwill publicwill will willsay fiddlingwith fiddJJngWIth say Republicans Repubhcans are fiddJJng fiddling WIth politics pOhbcs whUe whlle while Europe burns burnsand burnsand burnsand and will repud ate those Republ c cans cails cans ans ails at the pollsEven pollsEven polls pollsEven Even if i1 11 a tax bill should surmount the surmountthe veto hurdle Democra Democrats ts st II li hope Dhope IIhope lihope it will WIU boomerang on the ta to tamilJar tomiliar ( amiliar milJar miliar argument mentioned earlier that it gives uncommonly little httle to tothe tothe tothe the common man and is balm of ofgllead ofgilead ofgilcad gllead gilead for the high bracketsRepublicans brackets bracketsRepublicans Republicans counter with the theassertion theassertion theassertion assertion that ta ( at , ' relief reUef Is a cry crylug crying crylag lug ing need They feel Americans AmericansWIll Americanswell Americanswill WIll well not be too anrry angry If U 1f theIr theIrfinancial theirfinancial theirfinancial financial load is fs Ug-htened Ug htened Ughtened lightened - at the theexpeuse theexpense theexpense expeuse expense of Europe provided providedthat providedthat providedthai that emerfency emergeney emergency relief is voted votedand votedand votedand and perhaps a \ Marshall I\larshalI I larshalI plan ac- ac accepted accepted ac accepted - - cepted In principle prmclple but consid considerably considerably consldenbly erably shaved down as to the thetotal thetotal thetotal total actually authorizedYou authorized authorizedYou You may have read the report reportTaMs reportTaxes reportTaxes TaMs Taxes and the Budget a Program Programfor Programfor Programfor for Prosperity In a Free Economy Economya a document issued by the non part parts partssan partisan ! san non profit Committee for Eco EconomIc Economlc Economic nomIc nomlc Development This group em employs employs employs ploys a large staff of experts who whostudy whostudy whostudy study go got go\ernmental go ernmental \ , ernmental problems and andreport andreport andreport report on them at frequent mter inter mter31s interS inter\als inter als \31s 31s \ S \ als There is much mucb in this latest report reportto reportto to give aid and comfort to the tax taxreduction taxreduction taxreduction reduction school but it also conta ns nsthe nsthe nsthe the . warning arnlng that it is not neces necessary necessary necessary sary or desirable to make final de deC1Slons devisions decisions C1Slons visions about 1948 tax policies polJcles at atthis atthis atthis this time It will be necessary early earlynext earlynext earlynext next year At that time it will be bepossible bepossible bepossible possible to get a clearer picture of off ofthe offthe ofthe the expenditure expendlture outlook ahead and andof andof andof of the degree of inflat mflat onary pres pressure pressure pressure sure which then existsBut exists existsBut But the question of mflatlon inflation mflatlonary inflationary inflationary ary pressure and how to ease easeIt easeit caseit It is alreidy alre'ldy alreldy already ' a highly pohtlcal political politicalpne politicalone pne ne Both part cs es realize reahze that thattl thatti thattley tl ti ey haie hae hate , to grab the reins If Iftl ifti iftl tl ti ey are coins gomg going to get credit for forgUiding forguiding forCUidin gUiding ; the country out of a aboom aboom aboom boom bust ccle cycle C cycleEi ccleZt } ) cle Zt HI Ei ? PartrsanshlP Partisanship PartisanshipApple PartisanshipApple Apple Cart Tipped TippedWhen TippedWhen When Preslde President Presidet ( l Truman revealed revealedthe revealedthe revealedthe the fact that he intended mtended to use the theemergency theemergency theemergency emergency session of congress con convenmg convening convenmg venmg vening November No\ember No ember \ 17 not merely to toconsider toconsider toconsider consider aid to Europe but also to toponder toponder toponder ponder a program for lowered loweredprices loweredprices loweredprices prices it upset the apple cart as asone asone asone one Republican Republ1can said to me An Anagreement Anagreement Anagreement agreement had been reached to gIvePriority givepriority give givepriority priority to aid toE to toMsT MsT ' E Europe u r 0 p e Senator SenatorTaft SenatorTaft Senatorr \ , Taft boss of theRepubl theRepubl the theJ thens ns Republ can policy policycomIDlttee policyI J ' _ VH ' &t t & ! Jt ' committee comIDlttee lmrnedlately imme lmrne " " * % W theW < y3 ? : diately dlately made thereassurmg thereassuring the , reassurmg reassuring s tat t a t e ement ment that he felt feltthe IX IXthe the que question s t Ion of ofemergency ' : yl "Agency Agency emergency ' " aid and andpossible andk andj k < | possible preliminary preliminary prelimi prelimitj -tj tj - nary legislation onthe onTaft on onthe the Marshall plan plancould planlalt planTaft Taftthe Taft Taftcould could and would besatlsfactonly besatisfactorily be besatisfactorily satisfactorily satlsfactonly taken takencare takencare takencare care of by December 19 He didn dldn t tsay tsay tsay say what else if anything anythmg he had m in mIDlnd inmind inmind IDlnd mind for the boys on the hill lull to tohandie tohandle tohandle handie handle But he did assure them they theywould theywould theywould would be home well before the theChristmas theChristmas theChristmas Christmas hoi hol daysThen daysThen days daysThen Then came the Truman announce announcement announcement announcement ment that efforts to check inflation inflationwould inflationwould Inflationwould would be cons dered on a par with withthe withthe withthe the aid to Europe plan He said the thetwo thetwo thetwo two . were ere clo closely cloely , ely interwoven mterwoven be because because because cause if the dollar continued to toshrink toshrink toshrink shrink the purchases of supphes supplies supphescoudn suppliescouldn suppliescouldn coudn couldn ] t be stretched to meet the theneed theneed theneed theneedAfter need needAfter After that Taft lost little time bme in intossmg intossing intossing tossmg tossing any impi Impl ed bi bl partisan pro program program program gram for the congressional session sessionto sessionto sessionto to the winds wmds It If Truman was to m in melude inelude inelude elude cons deration deratton of a domest c ceconomy ceconomy ceconomy economy program all bets were wereoff wereoff wereoff off All ot of the policies pol1c1es of the pres present present present ent adm nistration nlstratlOn nistratton said Senator SenatorTaft SenatorTaft SenatorTatt Taft were so bad he couldn t go goalong goalong goalong along wi h themAnd them themAnd And so the bi bl partisan apple applecart applecart applecart cart was upsetVJ1at upsetWpat upset upsetWhat What \VJ1at VJ1at Wpat \ is going gomg to happen is de decldedIy decidedly dccidedly cldedIy cidedly hazy at this writing wrltmg |