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Show NO COMMENT WASHINGTON It is clear that President Eisenhower Eisen-hower did not close the door to tax reform in formally requesting re-questing Congress to continue corporation and excise taxes tax-es at their present level. In fact, he left the door wide open by emphasizing that "consideration of fiscal measures will continue to be made in the light of the developing economic situation and , with full regard to both the short and long range effects of any proposal." Therefore, they who believe that enactment of legislation legis-lation like the Sadlak-Herlong tax reform bill would be in the best Interests of the nation plan to continue their campaign. This measure would make the! present tax system more eqult- able for all by lowering personal and corporation income tax rates' to a maximum of 42 by a ser- ies of annual reductions spread over five years. There would be a reduction of at least 25 in! every personal income bracket. Furthermore, it is the most' moderate tax proposal with respect re-spect to revenue impact pending! in Congress. And the expectation Is that this type of tax reform would so stimulate the economy' that tax revenue actually would' be Increased soon as a result and a return to a balanced bud- get more quickly assured. So, the Sadlak-Herlong bill Is advocated to lift the nation out of its present recession, in addi-j tion to providing a fairer tax system to promote permanent j prosperity and to make a vital cvontribution toward winning the economic race with Soviet Russia. It has bi-partisan support in Congress, having been introduced introduc-ed by Rep. Sadlak (R-Conn.) and by Rep. Herlong (D-Fla.). Both are members of the tax-initiating House Ways and Means Committee. Their bills are identical. iden-tical. Those familiar with how things are done in Washington think the present tax situation is about as follows: Mr. Eisenhower, for several months, has been getting a great deal of conflicting advice from his associates as to what course he should follow. While this debate de-bate continued, time marched on toward the June 30 deadline when automatic raductions take place in corporation and excise tax rates unless new legislation Is enacted in the meantime. Under Un-der present law, the corporation tax would drop from 52 to 47 and certain excise taxes (on automobiles, au-tomobiles, cigarettes and liquor) would decline to pre-Korean levels. lev-els. Since Congress must be given giv-en time to consider tax recom-mentations recom-mentations from the Administration, Administra-tion, Mr. Eisenhower decided he could not wait any longer. He recommended that the stat'is quo with respect to corporation and excise taxes be continued, j Never before, however, has he ! emphasized that the Administration Administra-tion would continue to re-examine the fiscal situation and would be ready to adjust its policy pol-icy as developments Indicated. There is ever-present possibility, possibili-ty, also, that tax reform sentiment senti-ment in Congress shared vig-I vig-I orously by some members of the I Administration might spread I to formidable proportions irres- pective of recommendations by j the Administration and by De-I De-I mocratic Congressional leaders. I It is vitally important that any . movement for tax reduction be channelled in the right direction direc-tion along the lines of the Sadlak-IIerling Bill so that a permanent improvement in the nation's economy will be made possible. |