Show internal revenue is eternal P p problem income tax spectre haunts next session of congress by BAUKHAGE news analyst and ami commentator washington VAS HINGTON it is a cloudy fall day and the last tattered brown leaves are fluttering nervously on otherwise bare branches wondering whether it is better to make the plunge now or wait for more favorable breezes about the same thing is going on in an old colonial mansion on connecticut avenue where beneath those high ceilings and once aristocratic surroundings republican national committee typewriters are clicking mimeographing machines are whirring and sweet telephone bells jangle out ot of tune S party leaders like the uncertain leaves are wondering whether the twice vetoed tax bin bill carefully re upholstered and furnished with what they hope in non equipment will bring in the votes this time down the block and across the street in an office building where the plaster on the walls Is hardly dry sit their opposites po sites members of the democratic national committee in their brand new quarters they are hopefully p r e dichting dieting that any effort to make this tax reduction bill a law when the world Is trembling on the edge of disaster will boom Bank baukhage hage erang democrats say that it if a tax reduction bill should pass is vetoed and the veto overridden what it does tor for the folks with over income a year will be balanced off by what it do for the folks below that income bracket you remember the original bill nr IJ 1 the first bill into the house hopper january 3 1947 at that time democrats la belled it the 10 20 30 bill claimed it would save the man with two dependents and 2500 a year income only 59 cents a week while it would save the man with a yearly income a week but that tax reduction bill and a later one substantially the same were squashed by presidential president lai veto and congress upheld the veto but now the possibility of something new and very attractive has been added A community property tax provision tor for every taxpayer briefly this means that a husband and wife may divide their income into two equal parts computing the tax on each of those parts and multiplying ti by two this naturally cuts the total amount of tax to be paid under present tax schedules for example the tax on two joint incomes of each comes to less than the tax on a net income because of the steeply graduated surtax rates GOP confident of bills passage thirteen states oregon washington california new mexico arizona nevada idaho texas oklahoma louisiana nebraska michigan and pennsylvania already have community property tax provisions so has hawaii the provision if inserted in a federal tax bill would put citizens of the other 35 states on the same basis the money savings under the community property tax clause would not benefit those married couples whose combined net income Is less than because the rates dont change up to that point that is why opponents say this community property tax proposal too is aimed at saving money tor for the bigger taxpayers and t help out the little fellows although the tax advisor to the ways and means committee tells me that neither would any benefits accrue under this provision to the married couple whose combined income is a year but the republicans feel sure that this proposal would carry a tax reducing bill through they claim many democrats living in states elates contiguous to the community property tax states state would support it heres hares the way democrats view the situation they know that the last tax bill might have been passed over the veld some say it certainly could have been passed had it included the community property tax provision they are not flippant about the republicans ability to muster the necessary two thirds vote this time to override a veto but democrats nourish this hope that it if tax debate is insisted upon before the question of lower prices and european aid including the long range marshall plan as well as emergency aid is settled the public will say republicans are fiddling addling with politics while europe burns and will repudiate those republicans at the polls even if a tax bill should surmount the veto hurdle burdle democrats still hope it will boomerang on the familiar argument mentioned earlier that it gives uncommonly little to the common man and Is balm of gilead tor for the high brackets republicans counter with the assertion that tax relief relict Is a crying need they feel americans american will not be too angry if thel their financial load Is lightened at the expense of europe provided that emergency relief is voted and perhaps a marshall plan ae accepted in principle but considerably shaved down as to the total actually authorized you may have read the report taxes and the budget a program for prosperity in a free economy t a document issued by the non parti san nonprofit non profit committee tor for economic development this group employs a large staff of experts who study governmental problems and report on them at frequent intervals there Is much in this latest report to give aid and comfort to the tax reduction school but it also conta contains ins 1 the warning that it Is not necessary orf or desirable to make final decisions about 1948 tax policies at this time it will be necessary early next year at that time it will be possible to get a clearer picture of the expenditure outlook ahead and of the degree of inflationary pressure which then exists but the question of inflationary pressure and how to ease it Is already a highly political one both parties realize that they have to grab the reins if they are going to get credit tor for guiding the country out of a boom bust cycle partisanship bipartisanship bi el apple cart tipped when president truman revealed the fact that he intended to use the emergency session of congress convening november 17 not merely to consider aid to europe but also to ponder a program for lowered prices it upset the apple cart as one republican said to me an agreement had been reached to give priority to aid to europe E u r 0 p e senator tatt taft boss of the republican policy committee immediately made the reassuring a statement t a t e that he felt the question of emergency aid and possible preliminary legislation on the marshall plan taft ta could and would be satisfactorily taken care of by december 19 he dian didn t say what else if anything he had I 1 in n mind for the boys on the hill to handle but he did assure them they would be home well before the christmas holidays then came the truman announcement ce that efforts to check inflation would be considered on a par with the aid to europe plan he said the two were closely interwoven because if the dollar continued to shrink the purchases of supplies be stretched to meet the need after that taft lost little time in tossing any implied bi partisan program for the congressional session to the winds if truman was to include consideration of a domestic economy program all bets were off AU ali of the policies of the present administration said senater taft were so bad he go along with them and so the partisan bipartisan bi bl apple cart was upset what Is going to happen Is decidedly hazy at this writing |