2738 CONGRESSIONAL RECORD-HOUSE . MARCH 27 To be chief shi p's clerk The Journal of the proceedings of yes April 9 on account of official business in Ballard, Edward A. terday was read and approved. my district. To be chief pharm acist. MESSAGE FROM THE SENATE The SPEAKER. Is there objection to Carpenter, Seth J. the request of the gentleman from A message from the Senate, by Mr. Louisiana? To be ch ief pay clerks Frazier, its legislative clerk, announced There was no objection. Allen, Albert F. Lewis, James H. that the Senate had passed bills of the Allison, Sidney C. Nash, Finley A. , Jr. following titles, in which the concur EXTENSION OF REMARKS Digonno, Theodore Stearns, William rence of the House is requested : Mr. PASSMAN asked and was given Groman, John M. Tremblay, Philip A. permission to extend his remarks in the Jones, Robert L. Wiggins, George A. S. 565. An act to amend section 3539 of the Revised Statutes, relating to taking trial RECORD and include a newspaper article. IN THE MARINE CORPS pieces of coins; and Mr. SMATHERS asked and u as given APPOINTM ENTS IN THE REGULAR MARINE CORPS S. 566. An act to amend sections 3533 and permission to e~end his remarks in the To be second li eutenants 3536 of the Revised Statutes with respect to RECORD and include an editorial. deviations ·in standard of ingots and weight Eugene J. Ambrosio . John D. McLaughlin Mr. FOLGER asked and was given per of silver coins. R obertS. Anderson Merrill J . Melton mission to extend his remarks in the Herbert J. Bain Charles A. Meyer LEAVE OF ABSENCE RECORD and include an article by Hon. Frederick W . Baker, Jr.Rex Z. Micha el, Jr. Harold Ickes entitled "Proposed Loans to Neil E. Barber Jack L. Miles Mr. WHITTINGTON. Mr. Speaker, I ask unanimous consent that the gentle Greece and Turkey Become Less Clear Foster W. Blough Lester Miller With More Light." Norman H. Bryant Roland E. Miller man from Mississippi [Mr. RANKIN] be Lyle W. Bullard Mason H. Morse granted leave of absence for today on Mr. CASE of South Dakota asked and Thomas R. Burns Herbert A. Moses account of illness. was given permission to extend his re Harrison M. Butler Stanley A. Myzienski The SPEAKER. Is there objection to marks in the RECORD in two instances and John W. Carraway John H. Papurca the request of the gentleman from to include certain correspondence of in James G. Costigan Joseph .- A. Piedmont, Mississippi?· terest to the Sioux Tribe of Indians. Charlie J. Dunkley Jr. COMMITTEE ON ARMED SERVICES AND Frank M ·. Fitzpatrick,Ollie B. Porter There was no objection. Jr. Charles A. Read COMMITTEE ON PUBLIC LANDS COMMITTEE ON THE JUDICIARY Homer D. Frison Augustine B. Reyn- Mr. HALLECK. Mr. Speaker, I ask Melvin K. Green olds, Jr. Mr. WELCH. Mr. Speaker, I ask unanimous consent that the Committee unanimous consent that the Committee Richard P. Grey Edward L. Roberts on Armed Services and the Committee on Robert Hall George C. Schmidt, Jr. on Public Lands be permitted to sit dur Ernest C. Hargett Clarence R. Stanley ing general debate today. the Judiciary may meet today during LeRoy C. Harris, Jr. Richard E. Stansberry The SPEAKER. Is there objection to general debate. Joe L. Hedrick Charles S. Stribling the request of the gentleman from The SPEAKER. Is, there objection to William J. Heepe Alfred C. Taves California? · the request of the gentleman from In Hermann Heinemann David S. Taylor diana? John v. Huff Eul W. Thompson There was no objection. There was no objeCtion'. Clarence M. Hurst Owen I. Thompson EXTENSION OF REMARKS GENERAL DEBATE 0~ THE TAX BILL James D. Jordan Homer E . Tinklepaugh Mr. POTTS asked and was given per Jack F. Kelly William P. Vaughan Mr. KNUTSON. Mr. Speaker, I ask James F. King Alan J. Warshawer mission to extend his remarks in the unanimous consent that the time for Harold R.. Kurth, Jr. James 0. Webb RECORD and include an editorial from the general debate on the bill
from Illinois EMr. MASON J within the Illinois came to Michigan to advise us the take-home pay of the · $300,000-a last 2 or 3 days said publicly, ''l am in about the passage of a sales tax bill in year married man with no dependents favor of a.straight 26-percent across-the- M1chigan. would be increased by about $4-7 ,000~ or board cut." I am sorry, with all the Mr. SADOWSKI. Mr. Chairman, will more than 70 percent, w~ile the $4.COO-a knowledge of tax. matte1·s, that he was the gentleman yield? year man would be increased by $118 .. or not able to convince hfs. Republican col- Mr. EBERHARTER. I Yield. 3% percent. leagues that they should bring out a Mr. SADOWSKI. 1 was a member of The-Members of this House, Mr. Chair 20-percent across-the-board reduction. the.Legislature of Michigan at that time. man, no doubt are interested in what this Mr. MORRIS. Mr. Chairman, wm If I remem,ber correctly, what the gen- bill does for them. Well, a married per the gentleman yield? tleman from Illinois proposed to us at son With a net income of $12AOO b""fore Mr. EBERHARTER. I yield. that time was the infamous sales tax, personal exemption would receive an Mr. MORRIS. I have the highest re- unjust in its workings, which· taxed the additional $.60~, or 6.S percent in take- gard and· respect for the gentleman from milk of the babies and the food of the home pay. , illinois who has just spoken, but it may underprivileged. The man making $50 I wonder, Mr. Chairman, whether the be that on this particular subject his a month· would have to pay a 3-percent members of- the majority, who seem to much learning hatll almost made him tax on every bit of food he bought or think the tax reduction joy ride such a a "KNUTSON.' '" every piece of clothing he wears. It is fine · campaign issue, have stopped to Mr. EBERHAR.TER. l thank the the most onerous, the most indecent consider just bow many people in their gentleman for his contribution. thing ever put upon our State. districts will receive this 70-percent m I want ·.. o further· call attention to the The Republican poliicy of high prices crea~e in spendable income given to tax fact that in illinois they do not have any for consumers, high profits, and high tax· payers above $300.000. The figures of the State income tax. So that all that ex- reductions for the rich is already· re.., Secretary of the Treasury show that only perience which the gentleman ha.d per- sented by the great masses of peQple, as around 1.000 taxpay~rs in the entire haps is responsible for Illinois having :recently demonstrated by the teachers' country make this much money. It is what is known as· on·e of the most re- strike and the thousands of letters that my pre~etion that the Republican Party gressive tax systems l.n the col,Ultry, be- I am now receiving. I think this fore- will rue the day· when H. R. 1 was born. - cause nearly an of their :revenue is de- tells the end of Republican rule in Con The .ts.ooo.ooo taxpayers \\i.th incomes rived from excise taxes.. So f1 the Hous,e · gress. tmder $5~000 . all of whom. even after the wants to follow . the gentleman from .Mr. MASON. Mr. Chairman, will the illusory 30-percent committee amend Illinois [Mr., MAsONl in a 20'-percent gentleman yield? ment. would receive less than a, ._perc~nt -strai3ht-across-the-board reduction and Mr. EBERHARTER. I yield to the . increase in take-home pay~ ~y wen ask his method of raising revenue by excise gentleman from Michigan. His name a few embarrassing questions. Nor may taxes, then we wm acknowledge bis bas been Dlentioned so many times it is aU the·taxpayers be too pleased with the superiority over 'the gentleman from only fair to yield to him. fa'et that Members of Congress receive Michigan -EMr. DlNGELLl whom be men- Mr. MASON. What 1 said was that I a higher tax benefit than they. tioned about seven times but to whom did not hear the statements made by the · No; the Republicans do not deny the he refused to· yield. ·gentleman from Michigan [Mr. DnmFLL]. dis:paritie$ I have outlined. They seem Mr. DINGELL. Mr. Chairman, will I did not say they were not made on the prcnd of providing .this vast. windfall for tl1e gentleman yield? fioor. the wealthiest taxpayers. Of course, Mr. EBE,RHARTER. I shall be glad Mr. DINGELL. That was the only in- they become a bit nervous when it is to yield. _ _ fe'tence I could draw. pointed out .that the original 20 pe-rcent Mr. DINGELL. Tbe gentleman from Mr. MASON. & .condJy, I was 'called across-the-board plan would have in Illinois [Mr. MAsoNJ referred to me but to Michigan to do a definite job, to eXi creased the take-home pay of the high would not permit me to answer. - I may plain the sales tax which I had voted ,est brackets by nearly 100 percent. And say to my friend from Illinois that the against in the Illinois state Senate; but what. a. shock it was to find that the orig remarks to_which he objected, and im- I was called there to do. a job and I did it. inal plan· would have resulted in tax plied. at least that they were not made Mr. CURTIS. Mr. Chairman, will the payers with net income above a. million on the floor, tbat they were definitely gentleman yield for one ·question?' dollars actually paying leS.s taxes than ma~e on tbe fioor;· and the gentleman "Ml·. EBERHARTER. I will yield for a before the war. This obviously was from Mississippi [Mr. ABEENETHY J, ·by question, but" I cannot spend all my time political dynamite-even to the Mellon my side. ~eUs me he beard me mak:e them yielding to others to carry on this dis- minded majmity. · You may have won . on the :floor, and there are other Mem- pute. - dered. as I did; wher-e the lOYz-percent bers on the :floor today . who heard me ~ Mr. CURTIS. It appears that· the mi figure in the case of taxpayers over $303,- make . those references. This· much nority is not. going along with this bin, 000 came :f.rom. Well, Mr. Chairman, m~t be conceded, however, that under but I wonder who is on trial, the gen chart 1 on patre 35 of the minority views tbe rule I have the right to revise and tleman from Minnesota [Mr. KNuTsoN] in the report on H. R. 1 shows that this extend my remarkS and ·1 could if I cb~e or the gentleman from lllinois [Mr. 10% percent is .t:h~ highest figure that place an added thought or a graphic MA.soxl. _ coUld ·be applied in the upper brackets, illustration in them. Mr. EBERHARTER. I wiH let the and still not re.stm·e them quite ta .the Let me say just one other thing to my committee decide that. prewar level. · · friend from Dlinois: If he were called to Mr. REED of New York. M.J·. Chair- Yes; Mr. Chairman, this bill would Michigan to advise with the legis}ature man. will the gentleman yield? enable ihe high-bracket taxpayers to for in 1933 it; was for the express purpose M1·. EBEBHARTEB. Mr. Chairman, I get that World War II ever oectJITed. probably of trying to correct a tax situa- decline to· yield fw·ther. · The people who benefited most from the tion that was a mess from the previous There are just two points I want to wartime levels . of business activity and administration under Republican misrule. make clear ~bout this-bill in the time at the, highest profits in our history now Mr. MASON.· Mr~ Chairman. will the my· disposal: First, H. R. 1 favors the are ta have their share of the war debt gentleman yield? . rich against the poor; and, second, the transferred to the shoulders of the Mr. EBERHARTER. I have only 15 :few crumbs for the low-income taxpayer smaller taxpayers-the veterans' labor minutes. If the gentleman from Min- are tossed him in such a complex way ers. and other persons of modest in nesota [Mr. KNu.rsoml will yield me an as to seriously disrupt the.simplified sys come-who. did the fighting and sacri extra minute or two I will yield to the tem of individual income-tax payment. ficing to win the war. gentleman, but I cannot otherwise. On the first point, it is crystal clear Yet the Republicans have the crust, Mr. DINGELL. Mr. Chairman. will that H. R. 1 favors the rich against-the Mr. Chairman. to attempt to justify this the gentleman yield for one question poor. Even the Republicans do not deny prepristerous scheme. They say that the furtlter? that the amount of dollars added to the special consideration for the wealthy. is Mr. EBERHARTER. I yield. spendable income of upper-bracket tax- necessary -to stimulate venture capital Mr. DINGELL. I am prompted at this payers is vastly greater than the pittance and managerial incentives. On page 10 moment by my distinguished colleague addeil to the.. weekly · salary of the tax · of their report it is stated: from Michigan ·[Mr. SADOWSKI] that it payers with net incomes under $5,000. New investments are believed to come pri is presumed that the gentleman from No; the Republicans do not deny that marily from incomes of more than $10,000 to 1947 CONGRESSIONAL RECORD-HOUSE 2743 $15,000. Those with smaller incomes can No; the unsullied record of the Demo tax liability is $228, whereas if they file save little, and what they do save is likely cratic Party cannot be used to hide the separate returns their aggregate tax is to be invested in old, well-established busi ness. Such persons have neither· the· infor sticky fingers of the majority advocates $212.90, or a saving of $15.10 with sepa mation nor the time to examine the possi of H. R. 1. If ever a tax measure pro rate returns. In contrast, assume that the bilities of making investments in new ven vided, in the words of the late President husband of the second couple has an in tures, and cannot afford to assume the risks Roosevelt, "relief not for the needy but come of $2,700 and the wife $300. The tax involved. for the greedy,'' H. R. 1 does. advantage here would be with the joint My second point, Mr. Chairman, is return-$228 as compared with a tax of What a contradiction is this concern the mockery H. R. 1 makes of our ef $258.40 on a separate return basis. The for the well-to-do and the wealthy with forts to simplify the tax laws. Enact problem would be still more complex if the tears shed by the Republicans f6r the ment of H. R. 1 would be a set-back to we were to consider the matter of al low-income groups in the views of the the program of tax simplification whiCh locating deduction items under separate Republican minority on the tax adjust has advanced so far in recent years. It returns; so complex, in fact, that I shall ment bill of 1945. ·In these words 9 of would complicate the rate structure, the not undertake to lead you through any the present 15 Members of the majority tax-return form, and the withholding illustrative examples. on the Ways and Means Committee wept system. The "notch" provision would be The point to be stressed is that under for the small taxpayer: confusing. Employers using the per present law this sort of complication need In these low-income groups will be found centage method of withholding would be not be faced by married couples with one the millions of so-called white-collared em required to compute the amounts to be child with aggregate net incomes of less ployees-school teachers, clergymen, shop keepers, salespeople, bookkeepers, barbers, withheld on the basis of four-rates rather than $3,50.0. Under H. R. 1, however, clerks, and .professional or semiprofessional than the two provided under present law. millions of married couples would have workers, not to mention small-farm opera The retroactive tax reduction and the to start to worry about the type of tax tors, mechanics, janitors, caretakers, skilled split first bracket under H. R. 1 would return whether separate or joint that I and unskilled laborers, many of whom are greatly increase the number of refunds. they should file in order to minimize their
self-employed individuals. Most of these The split first-surtax bracket would in tax liability. # individuals are not organized and none of crease the number of ~eparate · returns of In other words, the married couple with them has experienced any measurable war husbands and wives and thus greatly small income would have to compute the time prosperity. The purchasing power of increase the work load of the Bureau of tax liability under both methods before their dollar, moreover, has shrunk by more they could actually know which method than 40 percent below 1939 levels. With the Internal Revenue. _ heavy rates o! taxation now in effect, and. The gentleman from Arkansas [Mr. is more advantageous. with living costs constantly increasing, these MILLS l yesterday explained: in some de H. R. 1 allows a taxpayer an additional groups have either been reduced to a sub tail how H. R. 1 complicates . the tax $500 exemption for himself if he is over standard o! living, or are rapidly approaching forms and creates problems · of educa 65 years of age. In the case of a joint that level. The successful solution of our tion and compliance in case of taxpayers return, an additional $500 exemption is entire reconversion problem will very largely with small incomes. Though his re allowed· with respect to each spouse pro depend upon the resources of this paJitic marks might well bear repetition, I mere vided such spouse is over 65 and has a ular segment of the taxpaying public. With in this group we find the bulk of the Ameri ly direct your attention to them on page taxable gross income of $500 or more. can market for the products of agriculture 2667 of yesterday's RECORD. Other ad If the taxable gross income of either and industry, not to mention the sources of ministrative problems include the fol spouse is less than $500, no exemption capital used in 'the production of agricul lowing: is allowed.- This provision would operate tural and manufactured goods and mainte First, H. R. 1 would aggravate the in somewhat as follows: nance of essential services. If tax demands equities resulting from application of Take the case of Mr. and Mrs. Jones, continue for too long to empty the pockets the State community property laws. each over 65. Mr. Jones has a net in of these citizens, the results can be serious You are familiar with the_unequal tax come of $1,500 and his wife has a net on a broad scale. treatment that now exists as between income of $500. They file a joint return Do you wonder, Mr. Chairman, that we taxpayers in community property States claiming two special exemptions, and Democrats now suspect these tears of and taxpayers in other States. H. R. 1 under H. R. 1 incur no tax liability. 1945 to be more of crocodile than human would serve to expand greatly the area In contrast, take the case of Mr. and origin? within which such inequities would arise. Mrs. Smith, each also over 65. Mr. In a final desperate effort to absolve It appears that in community property Smith, like Mr. Jones, has a net income themselves from guilt, the Republican States the number of couples with surtax of $1,500, but Mrs. Smith has a net in sponsors have pointed an accusing finger net incomes between $1,000 and $2,000 come of only $499 or $1 less than Mrs. across the aisle. They say, "The 1945 is about the same as the number with Jones. Mr. and Mrs. Smith file a joint Revenue Act made a fiat percentage cut surtax net incomes above the $2,000 level. return claiming only one special exemp in individual income tax." This means that the number of couples tion and incur a tax liability of $66.37. But, Mr. Chairman, this is but a half accorded preferential tax treatment In both the above cases, the wives were or third of the story. While the 1945 act simply by virtue of their residence in assumed to have no deductions. provided a 5-percent decrease, this was community property States will be 'about Thus, H. R. 1 creates a most unusual only one of three major changes affect doubled. And for the first time low in situation whereby an additional dollar come taxpayers in noncommunity prop of income serves, not to increase the tax, ing individual income liability. In addi but to reduce it by $66.37. The Bureau tion to the 5-percent cut, the 1945 act erty States in the bracket under $2,000 would be discriminated against. of Internal Revenue is constantly faced provided for an increase in exemptions by with taxpayers who understate their in raising the fiat $500 normal tax exemp Second. A new choice problem will be presented for the first time to millions comes to reduce their taxes. SurelyI tion for the taxpayer to the surtax level of taxpayers. though, this will be the first time that of $500 for the taxpayer, $500 for his Under H. R. 1, every husband and wife the Bureau will have to concern itself spouse, and $500 for each dependent. It who have separate incomes, that together with taxpayers who may find it decidedly also reduced surtax rates by three per represent over $1,000 of surtax net in advantageous to overstate their income. centage points throughout the scale. . come-that is, gross income minus deduc As a condition to the allowance of the The increase in exemptions and three tions and exemptions-are faced with the ·additional exemption to persons over 65 point decrease in surtax rates recognized choice between filing separate returns or years of age, certain benefits which are the principle of progressive taxation in ·a single joint return. This question can not at present treated as income are re accordance with ability to pay. In ·con not be answered merely by reference to quired to be included in gross income for trast with the reductions proposed under the total amount of net income nor by tax purposes by H. R. 1. The compli H. R. 1 which range from 30 percent at any other equally simple method. For cated rules dealing with these benefits the bottom of the income scale to 10 per example, consider two married couples, defy explanation. cent at the top, the tax cuts under the each having one child, and each having Let me read a portion of. H. R. 1, be 1945 act ranged from 100 percent for aggregate net incomes of $3,000. Sup ginning with line 2, page 19: some 12,000,000 low-income taxpayers to pose that in one instance the husband has This subsection shall not apply- less than 7 percent for the high~st in- . $2,200 income and· the wife has $800 in (1) to amounts excluded from gross in comes .. come. If they file a joint return the total come under section 22 (b) (5); except that 2744 CONGRESSIONAL RECORD-HOUSE MARCH 27 this subsectlon shall apply to amounts re I was rather amused when I read the Third. The taxpayers. will make their ceived as a pension, annuity, or similar al CONGRESSIONAL RECORD this morning to lowance for personal injuries or sickness tax return for the calendar year ending resulting from active service in the armed see the reference my friend, the gentle December 31, 1947, on March i5, 1948, forces of any' country, unless such amounts man from· Minnesota, made to the tax claiming $1,900,000,000 refund. are also excluded from gross income by a ftrll'.. or the taX experts, DINGELL, ENGEL, Fourth. The Republican Congress will provision of law other than section 22 (b) and GORE. Mr. Chairman, if it is a have to pass an appropriation bill re (5) ' question of taking the expert opinion funding this additional $1,900,000,000 in I do not know just how the folks in 'the and I am no tax expert and have never taxes collected during the previous fiscal Bm·eau of Internal Revenue can explain held myself out as such-of a tax firm year, together with the cost of reprocess this to the taxpayers, even though they called DINGELL, ENGEL, and GORE, or a ing every income-tax return that is made are supposed to be pretty good at that tax firm known as Dr. Townsend and on March 15, 1947. Net result: The sort of thing. Frankly though, I do not KNUTSON, I wm take the former every Democrats gain the $1,900,000,000 in understand it myself and I challenge any time. taxes they have collected for the last half Member here to take the floor ...and ex Mr. KNUTSON. Mr. Chairman, will of the fiscal year ending June 30, 1947, to plain this passage to the House. the gentleman yield? balance tlie budget with, and the Repub lican Congress will have to somehow In conclusion, equity a~d simplicity Mr. ENGEL of Michigan. I yield. are priority requirements for the success Mr. KNUTSON. Of course, the gen make up this $5,700,000,000 more, includ ful administration of the individual in tleman missed the point. When I re ing the $1,900,000,000 refunded, to bal come tax. H. R. 1 is written without re ferred to the gentleman as a ·tax expert, ance the H?4C budget. gard for these considerations. It should,. it was irony. It is my candid opinion that the Demo therefore, not pass. When the working Mr. ENGEL of Michigan. Oh, it was; crats will balance the 1947 budget and men back home see just what the Knut was it? I am very· glad the gentleman there is a great possibility of the Re son 20-percent acros.s-the-board tax plan informed me it was irony. publicans having unbalanced the 1948 does for llim and what it does for the By the way, the gentleman from Min budget. The task has been made a great , rich man up the street, and how it com nesota is a poet. He is a distinguished deal more difficult by the policy of our plicates the job of making out his income poet. I picked OUt of the CONGRESSIONAL Government supported by many able Re tax return, he is going to have the gen RECORD a gem. that should not be lost to publicans in pouring bi1lions of dollars tleman from Minnesota [MT. KN-uTSON] future historians when they write up the into foreign· governmen_ts. The fol and the Members w:bo vote for this bill - debate on this particular bill. When lowing are a few of the requests for "across the barrel." the other taJC bill came up in 1945, to be the two fiscal years, 1947 and 1948: Mr. KNUTEON. Mr. Chairman, I yield exact, on October 30, in twitting the $1 ,450,000,000 for relief· of occupied such t~me as he may desire to the gentle chairman of the Ways and Means Com areas-these appropriations are sup man frorr.. New York [Mr. REED]. mittee fMr. DoucHTONJ, the_gentleman ported by former President Hoover, Sen Mr. REED of New York. Mr. Chair from Minnesota [Mr. KNuTSON] quoted. ator ARTHUR H. VANDENBERG; chairman Of man, the gentleman seem::: tc change his the following little poem, which I assume the .Senate Foreign Affairs Committee, position. He was shedding tears, it was original: and Mr. EATON, chairman of the House seems, in the Seventy-nipth Congress, How sweet it is to hear the faithful watchdog Foreign Affairs Committee; $400,000,000 because he introduced H. R. 5293, a bay · for loan and aid to Greece and Turkey; graduated-tax bill in which the highest As we draw nigh to election day. $350,000,000 to feed people in liberated countries, to mention only a few of these tax to be paid by either· a corporation or On August 2, before the Republican bills.· Tiler~ has also been approved by ail. individual was 50 percen ~ . He seems election in 1946, the gentleman from to have changed his tune. He was. then cur committee an additional $489,000,000 Missouri '[Mr. CANNON] my distinguished for the Army to make up a deficiency interested, of course, in his distipguished former- chairman of the Committee on visitor from Pittsburgh. Ther.. he was ca,used by the passage of the Army-Navy Appropriations, engaged in the follow Pay Act and by reason of the fact that weeping tears. He was then ready to re ing colloquy wth the gentleman from lease venture capitaL the Army carried over more men than Mr. KNUTSON. Mr. Chairman, will Minnesota~ they told us they would have .when the Mr. CANNON of Missouri. The gentleman the ge~tleman yield? · 1947 budget was made up. Here we have from- Minnesota I Mr. KNUTSON} is going to approximately $2,700,000,000 extra ap Mr. REED of New York. I yield to the cut taxes 50 percent? How? pr-opri~tions to mention only a few, gentleman from- Minnesota. Mr. KNUTSON. Of course, when I made that Mr. KNUTSON. Is the House to un statement I was going on the assumption which must be raised by taxes. If -you derstand that the gentleman who has that Republicans were going to control the are bound to pass this. tax bill . at least just taken his seat [Mr. EBERHARTER] in House and cut all the waste. do not make it retroactive to January troduced a bi~l in the Seventy-ninth Con 1947. · Start its operation not earlier gress that would have given a 50-percent Did I hear a watchdog bay, or was it than with the beginning of the fiscal tax reduction to those individuals and just a. little rat terrier yipping? year 1948, which begin's July 1,1947. corporations in the highest brackets? Then, according to the RECORD here, Let me state my position on this tax Mr. REED of New York. _That is right. yesterday he pointed with a great deal of bill clearly. First, and -above all, we Mr. KNUTSON. Where were his tear pride to the fact that nearly 1,400 000 hRve to balance the budget. We ca-n ducts then? - senior citizens-of the age of 65 and ~ver not continue to borrow; we cannot con Mr. REED of New York. Now he are being removed from the tax rolls.· tinue to go in debt for operating ex comes here to ihdict us. Mr. Chairman, this ought to be known penses of this Government. When I say Mr. EBERHARTER. Mr. Chairman, not as the Knutson bill, not as H. R. 1, balance. the budget, I want it distinctly will the gentleman yield? but it ought to go down in history as the understood that I want included in that Mr. REED of New York. The gentle Dr. Townsend-Knutson bill. budget not only the interest on the na man did not yield to me when I asked Mr. Chairman, the House has before tional debt but inclusion in each annual him, and I am not yielding now. I just it H. R. 1, a bill to reduce income taxes budget of an amount which will liqui want to say that the gentleman is·giving by approximately $3,800,000,000 a year. date that debt upon a sound plan of a perfect demonstration of the fact that This bill was made retroactive to January amortization. If there is anything left the human mind · has infinite resources 1, 1947. Here is the picture as_I see it: after we have balanced the budget for resisting the introduction of knowl- First. H. R. 1 reduces income-tax rev including an amount for amortizing edge. · enue for ·the fiscal year ending June 30, debt, the ·great masses of people in the Mr. ~SON. Mr. Chairman. I 1948, by $3,800,000,000. low-income group who require that yield 10 mmutes to the gentleman from Second. In addition to the above money to live should be given the maxi Michigan [Mr. ENGEL]. amount, the bill, being made retroactive mum benefit of that reduction. M1·. DOUGHTON. Mr.. Chairman I makes subject to refund $1,900,000,000 1945 TAX BILL GAVE CORPORATIONS $3,136,000,000 yield 10 minutes to the gentleman !r~m or such other sum as will have been col TAX .Jt~IEF Michigan. lected during the last half of the :fiscal In 1945 Congress passed the first post Mr. ENGEL of Michigan. Mr. Chair year ending June 30, 1947, and for the war tax reduction bill. This bill gave man, before I discuss the merits of the period of January 1, 1947, to June 30 the biggest tax reduction to those who bill I want_to make a few observations. 1947. , made the biggest.profits out of the war. 11)47 CONGRESSIONAL RECORD-HOUSE 2745 It gave $3,136,000,000 in tax reduction to $320 bought in 1939 what $500, which is aggregate though the smallest individual corporations-$2,550,000,000 of this tax an individual tax exemption, buys to income. In trying to prevent waste of reduction went to ·19,100 corporations, day and $640 bought in 1939 what $1,000 the taxpayers' dollar in the past, I re 900 of whom benefited . to the tune buys today, which is the exemption of a peatedly called attention to the fact that of $1,797,000,000 in excess war profits husband and wife. In 1939 that husband the tax burden of the future, made n~c alone. All this, while individual taxpay and wife had a $2,500 exemption. That essary to repay these wasted dollars, ers received a reduction of $2,641,000,000. is what your tax law and your cost-of would fall heaviest on that great mass of The bait which induced some of us to living increase have done to your low small taxpayers in the Nation. I did not vote for this bill was that we were told income taxpayer. expect, however, that the Republican it took 12,000,000 of low-income indi HOW MANY PEOPLE CONSTITUTE THE Party would advocate a policy which viduals off the tax rolls. LOW-INCOME GROUP? would give the greatest tax relief to the Now we have before us another tax Let us examine the record and see just higher income group including those who bill which gives the largest individual how many people we have in this low made the largest profit out of the war benefits to individuals with the highest income group I am speaking about. Let who would now under this policy receive incomes. This time it is a Republican - us use $2,500 as the top figure for the the largest tax relief. · bill and a part of the Republican political sake of illustration. I addressed the HOW DOES REDUCTION OF TAXES AFFECT THE TOTAL bait that is supposed to satisfy us and House on this subject in 1945 and again TAX COLLECTION ,AND WHY? induce us to forget our scruples in that in 1946. I had obtained from the Treas There are many people in both the Re it will get the Townsend vote by giving ury Department tables showing the in publican and Democratic Parties, in fact people 65 years of age and over an addi come of the various groups in 1944, one I believe they constitute a majority of tional $500 tax exemption. I have no of our largest national income years. .I those parties, who believe that if you will objection to this exemption. I know found that in 1944 there were: only give tax relief to the man on top the these people need it. However, I also First. Twenty-one million.six hundred benefits will trickle· or percolate down to know there are millions of others in the thousand individuals with annual in the little fellow below. This argument low-income group who are equally wor comes of $1,000 or less, 12,250,000 of has been and will be again advanced in thy of consideration. whom were single persons and 9,010,000 trying to justify the passage of this bill. A 20-30 PERCENT TAX REDUCTION IS NOT FAIR TO were heads of families. It is based upon the theory that by cre THE LOW-INCOME GROUP Second. There were 12,430,000 individ ating new investment capital the workers The Republican party has had a splen-· uals, 7,450,000 of whom were married will obtain jobs. I cannot agree fully did tax record in the past insofar as the or heads of families with incomes from with this theory of government. I agree low-income group of our Nation is con $1,000 to $1,500. that under a capitalistic form of gov cerned, as pointed out in my remarks Third. There were 11,990,000 individ ernment or under a profit system we must on the floor of the House on January 27. uals with incomes of from $1,500 to permit the retention of enough profit so REPUBLICAN POLICY HAS ALWAYS BEEN TO GIVE $2,000, 9,580,000 of whom were married that industry can expand. However, all TAX RELIEF TO LOW-INCOME GROUP FIRST persons or heads of families. the capital in the world will not create A Republican Congress passed five tax Fourth. There were still another 7,- jobs except insofar as it creates purchas reduction bills from 1921 to 1930. In 550,000 with incomes of $2,000 to $2,500, ing power in the erection of new fac four of these bills the low-income group 6,590,000 of whom were married persons tories, and so forth. was given special consideration. Tax or heads of families. The depression of 1929 to 1940 should exemptions were increased during that This was according to the Treasury satisfy the most skeptical that those period from $1,000 to $1,500 for a single report furnished me taken from the in benefits do not adequately trickle or per · person and by several steps from $2,000 come tax records. Summarizing we find colate · down to the little fellow below. to $3,500 for a married person. The tax we had, in 1944, 53,230,000 individuals My theory is that in order to have per rate on incomes under $4,000 was re with incomes of $2,500 or under. If we manent prosperity one has to beg"in by duced from 6 to 4 percent to .2 to 1¥2 assume that each head of a family in this increasing the purchasing power of that percent and finally one-half of 1 per group had at least one dependent, we great mass of people-86,000,000-in the cent, successively. all by a Republican find that we have 85,860,000 people in·this low-income group. It is only by increas Congress during that 10-year period. country or 61 percent of the population ing the purchasing power and raising the At the same time taxes were reduced who were dependent on individual or standard of living of this great mass of on a sliding scale on the higher income family incomes of $2,500 a year or under the people that we can have real and in 1944. · permanent prosperity. By increasing group. The higher the income the less mass purchasing power I do not mean the tax reduction. I introduced my bill because I wanted taking the tax dollar from one taxpayer The same attempt to reduce taxes for the Republican party to have the credit and giving it to another. I mean in the few in the high-income group at the for being the first to recognize that need. creasing the farmer's and worker's pro expense of the many in the low-income I stated repeatedly both on and off the . ductive capacity and giving them a group I am informed was made then as floor of the House that I wanted the low grefl,ter share of the selling price of the now. The attempt was defeated by this income group to get tax relief first in thing they produce on the farm, in the House then and I hope it will be defeated order to increase both their living stand factory, mine, or whatever it may be. now. It was because I wanted the Re ard and their purchasing power. They If you will do this the man above is publican Party to continue that policy have to have tax relief to live decently. bound to obtain his share of the profit. that I introduced a bill last year and I do not want them to have tax relief Let me illustrate what I mean. If the again this year to increase tax exemp to the exclusion of everyone else. wife of a low-income worker from whom tions on the low-income group. During KNUTSON BILL GIVES GREATEST TAX RELIEF TO we are taking 10 cents a week in pay-roll the period from 1921 to 1940 the need for MAN WHO MADE GREATEST WAR PROFIT tax should take the 10 cents a week and revenue was not as great as it is now. The Knutson bill gives a man who buy a spool of thread from the corner On the other hand-living costs had not made the biggest profits during the war drygoods store to patch her husband's advanced to the high level that they have the biggest tax relief, while the individual pants, everyone from that corner store advanced since 1939 and the need for who had little or no increase in income, up through to the manufacturer of the tax relief to the low-income group to such as teachers and other white-col thread and back to the farmer who grew maintain a decent standard of living was lared groups, is now asked to continue to the cotton that went into the thread not nearly so great as it is now. accept increasingly low-living standards would get a part of the 10 cents. If that THE LOW-INCOME GROUP MUST HAVE TAX because of such increased costs. Giving $2,500-a-year worker could take a part REDUCTION a 10 percent added reduction to the ex of the $187 you were going to tax him The need of the low-income group for tremely low-income group is no fair solu under the original Knutson bilf to buy a tax reduction can best be measured by tion of their problem. The added reduc a suit of clothes for himself or a dress the increased cost of living since 1939. tion for them is so small as to be of little for his wife, everyone from the store According to a recent issue of the United importance. I recognize the fact that which sold him the suit or dress through States News it took $1.56 in February with the tremendous tax load we have to to the manufacturer and back down to 1947 to buy in living cost what $1 bought bear we must tax the broad base or the the farmer who grew the cotton or wool in 1939. On a living-cost basis therefore, · great mass of people who have the largest that went into the suit or dress is bound 2746 CONGRESSIONAL RECORD-HOUSE MARCH 27 ' to benefit. But if that worker is not left from $1,000 to $2,000 let us increase it to lief.'' I honestly believe that the average enough to buy a suit or dress, everyone $1,500 or even to $1,250 and leave the man will go along with us despite the fact from the store where he would -buy the dependent's exemption where it is at that we have not given him the tax relief suit or dress, or whatever it may be, up $500. Surely no one can argue that tak he needs to live. He will not go along to the textile mill and manufacturer who ing taxes out of incomes above $1,000' a with us if we permit the high-income would make that dress and suit of clothes year on a household is not taking the group with incomes running into the mil and back down to the farmer who raises necessities of life where that income is lions to feast luxuriously like Dives at the the cotton or wool will be the loser. below $2,000 or $2,500 a year. Again if table of tax relief while we expect this It was for this reason and not because we cannot give everyone that increase·, low-income group whose very living we the tax relief was given to the higher limit it to families where the aggregate are taking m taxes to be satisfied like bracket taxpayer that the revenue in the income of the husband and wife is $5,000 Lazarus with a few crumbs of tax relief Treasury for a time increased in the past, or under as we did in 1921. If that takes that may accidentally fall from the table despite the reduction made in income too much tax money, limit its application of Dives. tax rates. I recognize the fact and I to cases where the aggregate income of WHAT REPUBLICAN TAX PROMISES WERE MADE have said so repeatedly that we have the husband and wife is under $4,000, AND TO WHOM WERE THEY MADE? passed that critical point in the rate of under $3,000, or even under $2,000. Much has been said about promises taxation, where the law of diminishing Surely that sort of a plan can be ar made by the Republican Party during returns is now operating. Under a cap ranged without taking too much tax the campaign that we would reduce italistic or profit system you must leave revenue. All I want is to give that low taxes 20 percent straight across the enough profit to the businessman so he income group a break. board. I heard no promises of that kind can have capital to expand his plant to I do not want to give him, the low made by responsible Republican leaders take care of increased business. On the income group, that break to the exclu during the campaign. I heard some rash other hand no business can expand and sion of everyone else. I want to divide statements made as to tax cuts, such as no profit system can survive without the amount available for tax reduction were made by the present chairman of profits and there is no profit on a pair in the same way as we divided it in. the the Ways and Means Committee on the of overalls, a ~mit, or dress that the low 1921-30 period. First, give the low floor of this House on August 2, 1946, income group does not buy. Mr. Henry income group an added exemption how when the following . colloquy took place: Ford, Sr., undoubtedly had this very ever small. Second, divide the balance Mr. CANNON. The gentleman from Min policy in mind when for the first time in such a way so that every taxpayer nesota (Mr. KNUTSON] is going to cut taxes he established what was then considered gets the same reduction on a sliding scale 50 percent. How? extremely high a $5-a-day minimum just as we did during the previous Re- Mr. KNUTSON. Of course when I made wage in his factory. publican administration. . that statement I was goi:t;~.g on the assump Let me repeat that a sound peacetime I do not want to go into the next elec tion that the Republicans were going to con prosperity can only be built upon that tion, and I do not believe the Republican trol the next Congress and that they would cut out au waste. basis. It is only by building up the in Party does, and tell that husband and come and productive capacity of the low wife with a $1,200 income to maintain That statement was of course ridicu income group that you can have a na a household and from whom we are tak lous and bound no one. The only prom tional income large enough to pay our ing $38 a year living money that we are ise to cut taxes straight across the minimum current operating expenses, now going to give them $8, $9, or $10 a board which I heard at that time was pay our national debt and not have fur year relief and continue to take $30, $29, made by the chairman of the Ways and ther inflation. or $28 a year of their living money, and Means Committee and he was not talk THE HOUSEHOLDER CLAUSE MUST BE RESTORED then give the man with an annual in ing for me nor for the Republican Party come of $6,000,000, $540,000 a year in so far as I am concerned, when he added Only by restoring the householder tax relief. clause and increasing exemptions can we the words "straight across the board." I do not want to say to that single per Again the same gentleman in a.Ietter give real low-income group tax relief. son who has room rent, clothes, food, By doing that we need not increase the inserted into the RECORD on July 22, 1946, and so forth, to buy on an income of $600 promised a Mr. Scott, of a large Minne exemptions of the dependents. As the a year and from whom we are taking $19 law now stands every member of the apolis firm, a 20-percent straight tax re a year ·in living money: "We are giving duction after speaking of cutting taxes family receives the same exemption of you tax relief, we are only going to take $500. A widow whose husband died and 50 percent. $15 out of your living and give you $4 a Again on October 30, 1945, when the who has the care of the dependent chil year tax relief," and then give the man dren loses her husband's $500 exemption tax bill was up--which reduced taxes with $1,000,000 a year income $110,000 a $5,900,000,000 in largest p.art on corpora despite the fact that she has to maintain year in tax relief. the same household and at the same time tions-and in ribbing the then chairman That is sure to be the issue upon which of the Ways and Means Committee, the support the fatherless children. The the next Congress is going to be elected if same is true if the mother dies and leaves gentleman from Minnesota waxed very we pass this bilL Does anyone honestly poetic when he quoted from some un the responsibility of supporting the chil believe that we can go into that next dren to the ·father. The householder known poem: election and convince these people that How sweet it is to hear the faithful watchdog clause recognized the fact that the ex we had their interest at heart and are emption should be maintained for both bay entitled to their support if you vote for As we draw nigh to election day. father and mother after one dies because and pass this bill? the same household must be maintained. If we, the Republican Party, lose this Speaking of election-day promises, I ' After the household is maintained the House and the Presidential election in heard some watchdog bay-ing about a 20- added expense for rent, heat, and so 1948, it will be because of the short , percent straight-across-the-board tax forth, for each successive child is not in sightedness of our leaders and not be reduction before eleGtion day. I hear creased on a numerical basis. I would cause of a few of us who have tried to them baying again today in the attempt restore the householder clause and give avoid having our party placed in such a to get the Townsend vote. But I wonder the householder an added exemption. vulnerable political position. I want to just to whom the Republican Party made This would of course reduce the amount go to these people and say, "Here is what a promise to cut taxes 20 to 30 percent required because the exemption of the we were able to do for you. We tried to straight across the board? Let me ask children would not be increased. This help you. It was not all we would like to the Members of this House: Did you principle was recognized until recently. have done, but the terrible financial con make that promise to cut taxes 20 to I want to go back to it. dition of this country, the tremendous · 30 percent straight across the board? Today that householder has only public debt, much of which was caused by If so, to whom? Did you tell the low $1,000 exemption for the father and waste and extravagance, makes it im income farmers of your district, if you mother, or the equivalent of $640 in 1939 possible for us to give you all the relief we have any, that you were going to give purchasing power. It is not enough would like to have given you. Go along the man with an income of $1,000,000 a under present conditions. If the amount with us and next year when we get some year $110,000 tax reduction and the mar available for tax reduction is not enough of these financial liabilities out of the ried man with $1,200 a year $8 or $9 a to increase the householder exemption way we will try to give you further re- year reduction? Did you tell the work- 1947 CONGRESSIONAL 'RECORD-HOUSE 2747 ers, organized and unorganized, in your ises I never heard about to someone on I heard with interest the remarks of district that you were going to give the this 20-percent across-the-board tax the gentleman from Michigan. I do not men with $&,000,000 annual income $540,- cut. May I inform the gentleman that think any of us on our side of the aisle 000 a year tax reduction, and the mil out of the hundreds of letters I received are going to be very much concerned lions of people, including workers with on my stand, 95 percent approved my about what our voters will do to us when .. annual incomes under $2,500 a year an position and less than 5 percent disap we pass this bill. I heard his heart bleed average of $26.50 or perhaps $35 a year proved. It seems to me that he is a for the little fellow. I do not think any tax reduction? Did you address any bit confused in thinking that the 5 per one of us yields to him in our desire to large meeting of the low-income group cent who make the larger campaign con- . take 20,000,000 people off the tax rolls, of voters and tell them just what you tributions elected a Republican Congress and in. our desire to spare 20,000,000 peo were going to do to them in this amended instead of the 95 percent of the voters, ple a $6,000,000,000 tax load. But my 20-percent across-the-board tax reduc Republican and Democratic, who actu friend from Michigan· forgets, and his tion? .Did you get any applause when ally cast their ballots on election day. colleagues in the firm of DINGELL, ENGLE, you told them, if you did? Just to whom He is the one who is in a fog. Unless and GoRE, forget that Republicans did did you make the promise? Was, it to that fog is cleared from the brain of not put these people on the tax rolls. We those in the low-income group, includ some of our Republican leaders, they would like to get them off. We have the ing farmers and workers, or was it to will find themselves once more a mi deepest sympathy, all of us, with every the wealthier persons who were best able nority party when the next election rolls one who pays taxes, and particularly to kick into the political campaign fund? around. . with those at the lower end of the tax Was it to the workers in United States Mr. HOLMES. Mr. Chairman, will the scale, on whom the burden of rising costs Steel, Weirton Steel, or other steel cor gentleman yield? of living falls so heavily. poration? Or was it to the financiers Mr. ENGEL of Michigan. I yield. Why are they on the tax rolls? Why behind those steel' companies to whom Mr. HOLMES. Are you taking into must they stay on the tax rolls? Ask the this promise was made? I heard noth consideration any changes in amended gentlemen who for 14 long years sup ing from responsible parties about a 20- income-tax returns in relation to your ported the wild extravagances of the New to 30-percent straight-across-the-board figures? Deal and supported the new schemes of tax reduction during the campaign. Mr. ENGEL of Michigan. The pay government activity that cost money. I was told recently by the president of roll tax will be in. Your first-quarter Those things now are coming home to one of the financial institutions and by estimates are in. Everybody paid into roost. Those things will have to be paid one of the wealthiest oil operators in the the Federal Treasury our estimated re for and paid for by every citizen in the State of Michigan, who reside in my turns for the year. United States. On top of that, there was district, just what they are going to do Mr. HOLMES. Do you take into con a great war with a cost beyond all imag to me in 1948 and 1950 if I did not change sideration the changes in amended in ination, with a national debt and an my opinion on the question now before come-tax returns? annual cost burden that can not possibly be met unless everybody stays on the tax the House. I did have a vice president Mr. ENGEL of Michigan. Re~ardless of one of the largest steel corporations, as to whether the 1947 tax return is re rolls. Gentlemen, we did not put them who is a friend of mine, call me and try duced by amendment or the tax paid is there. They were put there by the Dem to convince me that I should withdraw refunded, the result is the same. It ocratic Party, the Democratic Adminis my opposition to H. R. 1. I did have the -comes out of the tax receipts collected tration, and the war. Republican national committeeman of on March 15, 1948, when the final 1_947 The rriost important issue, the one issue my State phone me and ask me to change returns are made. that we confront here today, is the issue my mind. To save him embarrassment, of whether or not we are going to adopt Mr. HOLMES. Will the gentleman let a tax bill and a policy of taxation in the I shall not give the reasons he gave as me finish? true American tradition of fairness, jus to why I should change my mind. In fact Mr. ENGEL of Michigan. I beg your tice, and equality all along the line, for I received many long distance calls and pardon. I have the floor. all citizens, or whether we are going to letters from the higher-income group Mr. HALLECK. You yielded to him. adopt the line of tax policy advocated by disagreeing with me, and some of them Why do you not let him say what he the gentleman from Michigan and the violently and I answered them frankly. wants to say? two Democratic members of that firm I, together with other Members of Con Mr. ENGEL of Michigan. Well, now, and their colleagues, the liquidation of gress, have accepted campaign_ expense you are not running this. I ani running incentive tax policy-the destruction of money from my party. I always felt this end. You can run your crowd but incentive tax policy-the marxist, collec there were no strings attached to party you cannot run me. tivist . policy-a policy that more than contributions. I have always rejected Mr. BENDER. Mr. Chairman, will the anything else will tend to destroy free contributions from both labor and indus gentleman yield? · dom in the United States, undermine the try because of possible obligations such Mr. ENGEL of Michigan. I yield to economic strength of the United States, contributions might put me under. It the gentleman from Ohio. and will do more than ariything else to is the first time I have ever been criti Mr. BENDER. Is not that 20 cents deter the processes of economic expan cized for my position'by a member of our important to the little fellow? In my sion out of which alone the national debt National Republican organization. own State, a Democratic· governor put will ever be paid. This Michigan Republican national over a sales tax and after we had been on our friends on the other side speak committeeman wrote to other Repub this drunken spree for 14 years, does not sanctimoniously of paying off the na lican Members of Congress from Mich the gentleman think it is about time we tional debt: "Oh, no, not taxes-let us igan giving his views on this 20-percent do a little something for the taxpayers? not reduce taxes. Let us pay off the na tax reduction. In that letter he wrote, Mr. ENGEL of Michigan. Sure it is tional debt." That is the trap that they in part, as follows: important. It is the price of only a quart would like to lay for us. They know It is mast distressing to have the proposed of milk. I want that low-income tax that we Republicans are cast in the role 20-percent across-the-board tax cut ques payer to have more. of Simon Legree and Scrooge because tion ed so critically by some of our Members · Mr. KNUTSON. Mr. Chairman, I we are cast in the role of budget-cutters of Congress. From their reported remarks, yield 10 minutes to the gentleman frotn and are ot?ligated to effect economies in it would seem that they are a bit confused New York rMr. COUDERT]. as to which party elected them. the national budget. Surely they are Mr. COUDERT. Mr. Chairman, I not naive enough to think you can effect It was evident to whom he was re want to thank the distinguished chair economy in the national budget without ferring when apparently I was the only man of the Committee on Ways and stirring up widespread resentment and Republican Member from Micbigan who Means for giving me this brief opportun having to face the squawks of all those did not get a copy of this letter. This ity to participate in what I think is an individuals and their families and of the was the same gentleman who called me historic debate. I do not believe we can different groups who may feel aggrieved. on the telephone and asked me to' with exaggerate the importance of the bill They know that the national debt has draw my opposition to H. R. 1. Appar that is before this House and the action no Edgar Bergen to give it a seductive ently this gentleman made some prom- the House is going to take on it. voice. 2748 CONGRESSIONAL RECORD_:HOUSE MARCH 27 So what would they have us do? . They all men of imagination, initiative, and $3.20 taken out of his pay every week would have us bear the burden of effect good-will. The country owes a very real will welcome a reduction of that· amount ing economy with all the attendant pain, debt to the courageous chairman of the to $2.20, and you cannot tell me that the annoyance and trouble, and political Ways and Means Committee and a ma retired school teacher or fireman or risk, and they would come in next year jority of its members for squarely meet policeman, or Federal or State employee and give to the American people the ing the challenge. trying to get along on a pension that is benefit of our work and sweat in the The CHAIRMAN. The time of the gen subject to taxation, or, for that matter, form of a tax reduction. Of course, they tleman from New York [Mr. CouDERT] the large group over 65 who have laid are against tax reduction, and any bill has expired. aside a bank account or a few Govern that the Republican majority might Mr. KNUTSON. Mr. Chairman, I ment bonds or other securities and in bring in. yield 2 minutes to the gentleman from the evening of their lives, when they Our Democratic friends have long had New York [Mr. KEATING]. should be entitled to a measure of com among their leaders advocates of sound Mr. KEATING. Mr. Chairman, I pro fort and security, are worrying over their American tax policy. Going back to the pose to support this bill, and I speak, living expenses and the cost of meat anc father of the Democratic Party, Tom as did the gentleman from Michigan coal and rent, you cannot tell me that Jefferson, it was he who declared that the [Mr. ENGEL], as the author of a different these people will not welcome the tax re first principle of association was the tax bill from the one in 1uestion. My lief afforded by this raise in their exemp guarantee to everyone of the free exer tax bill, H. R. 2492, called for a gradu tions by $500. cise of his industry and of the fruits ac ated percentage method of tax reduc Thirty-one million of these small tax quired thereby. You do not get that tion, all the way from 35 percent in the payers in the lower-income and over 65 under the present tax structure, and lowest brackets to 7% percent at the groups, it is estimated, are benefited es would get it a great deal less under the top. ' pecially by the additional ·consideration program of the Democratic Party in the But I cannot go along with the gentle shown in raising the reduction from 20 House. man from Michigan [Mr. ENGEL] in two percent to 30 percent and in this special Franklin D. Roosevelt made a great respects. The first error I believe he is exemption for the older people. In addi speech that has so often been quoted, committing is in deciding to vote with tion, some· 15,000,000 more share in the that taxes are paid in the sweat of every some Democrats, not all, I suspect, benefits in the 20-percent and· 10-per man's brow who labors, and that exces against any tax reduction just because cent brackets. Just because this bill be sive taxation leads to unemployment and his particular bill was not accepted by fore us does not approach this tax-reduc misery. the Committee on Ways and Means or tion problem in precisely the manner I But I do not stop there. There are because he may have had some personal might wish, is no reason, it seems to me, living Democratic leaders who have differences with the chairman of that to deny these deserving and overbur taken a sound position and not hesitated committee. I sincerely hope he will re dened taxpayers any_relief at all. I con to state it-a position in the tradition consider that decision. In the second ceive it to be my duty to support this of Jefferson and the other great leaders place, I cannot go along with him in the legislation, and am confident tbat it wm _ of the old democracy. One of those allegation, or at least the implication, bring not only new hope to the people of leaders sits on· the floor of this House that the distinguished majority leader this country, but. also, by thus virtually today. Here is what he said in 1939, has been trying to tell him what to do. effecting a pay increase to the wage- and as far ~s I am concerned, I shall I did not, as the gentleman from Michi - earners, will give them more money to be glad to .have him join the firm of gan says he did, drop my bill in the spend on the good things of life, thus con KNUTSON and Townsend. Listen to him: hopper never expecting it to go through. tributing to the general prosperity, and One of the deterrents, probably the great I introduced it and I fought for ·it with · will release not only much needed ven est, to business e~pansion is the high surtax the members of the Ways and Means ture capital, but also, and even more im brackets of the ·Federal Government. At Committee with all the force and sin portant, the wells of confidence leading present our normal rate is 4 percent-- cerity I cou1d muster and by every legiti to increased productivity, business· prog That was back in the antediluvian days mate method I could devise. But I ress, full employment, and the- creation of 1939- recognize the fact that legislation is and maintenance of a high standard of a give-and-take matter and that all living for all our·people. but our surtax rates run to as high as 75 percent-- knowledge in the world is not reposed in As I stated when H. R. 2492 was intro the mind of any one man, least of all in duced, I hope the time is not too far ! thi:q.k they are 86 percent now- my mind. distant when the present exemptions of in some cases, and this does not include I want to assure the membership on $500 for a single person and $1,000 for a State income taxes. You can see from this both sides of the aisle that neither the married person can be raised somewhat statement-- majority leader nor anyone else has tried to a more realistic figure. There cer Says th_e gentleman- to tell me what to do, and I do not pro tainly is some bare minimum, it seems to · that a deterrent exists to business expansion pose to have anybody tell me what to do. me, beyond which we should not go in by new or venturesome capital. Furthermore, I am confident that he has requiring a man or a woman to contrib not told anybody what to do and I resent ute out of his or her income to the ex One would suppose that was our own deeply the fact that the gentleman from penses of running the· Government. This chairman [Mr. KNUTSON] speaking, but Michigan in his excessive zeal, no doubt, bare minimum might well be set some it is not.- has allowed himself to create any such what higher than the present figures. The best interests of the man and woman distorted picture of the majority leader The difflculty arises out of the amaz who is looking for a job call for a sharp ship in this body which has the respect reduction of the present surtax rates. This ·ing reduction in revenue which the and any other deterrents to business activity and admiration, even when in disagree Bureau of- Internal Revenue figures re should be removed as soon as possible. ment, of the Members of the House on veal as the cost of the Government of both sides of the aisle. raising the exemptions even $100. For Mr. Chairman, those are remarks I believe the fight I put up along with , instance, it is estimated that to raise made in a radio address on September -many of my Republican colleagues who . these exemptions $200 would result in a 13, 1939, by the then majority leader of shared my views has borne fruit and I revenue loss very nearly equivalent to this House, now the minority whip, the am happy to testify that the leadership the total amount expected to be the gentleman from Massachusetts, Hon. has at all times been ready and willing result of the passage of H. R. 1. JoHN W. McCoRMACK. to hear us. Contrary to the apparent Although special emphasis, it is true, Mr. Chairman, the responsibility of conclusion of my friend from Michigan, should be placed on relief in the lower this House is great. The eyes of our I believe up my way that the hard-work brackets, as I am happy to say this bill countrymen are upon us, from Maine.to ing charwoman who earns $18 a week now does, it would not be equitable, it California,· anxious eyes, wondering if about whom I told the House the other strikes me, to deprive of the benefits of we are going to stand up for true, sound, day, will be very grateful to receive a tax reduction single men with incomes traditional American policies; stand up check from· the Government for $20.28, over $700, or married men with incomes for equality of opportunity, for the prin which is the annual amount she·wm save above $1,200, which would be the result ciple of keeping the doors open to the on taxes, and the man with two children of adopting the suggestion of the talent, the door .open to opportunity for who is making $50 a week and having gentleman from. Rhode Island. 1947 CONGRESSIONAL RECORD-I-fOUSE 2749 Therefore, l conclude, a bill has been A BALANCED BUDGET AND TAX REDUCTION the people of the Ninth Congressional brought before us, not perfect, in my Mr. AUGUST H. ANDRESEN. Mr. District of Illinois. opinion, but embodying, to some extent, Chairman, I am supporting H. R. 1 with The Ninth Congressional District of the principle of graduated reduction, a certain reservations, and I feel that I Illinois is known as the gold coast dis~ bill worked out by resolving the sincere should make my position clear before trict of Chicago. This is a misnomer. and conflicting opinions and positions I cast my vote. In the first place, the It is true that the gold coast is located of many Members. There are those who Republican majority is committed to bal in the district and that some of the sincerely contend that a straight per ance the budget and to make a substan wealthy people in Chicago are my con centage reduction should be given to ital payment upon our national debt. stituents. On the other hand, mine is everyone. Others claim that reductions These commitments must be carried out. a district of extremes. It is the most should take the ·form of a raise in the Relying upon the presentation made cosmopolitan district in the United present exemptions. Still others, like by the members of the Ways and Means States. I represent both extremes in the myself, favor the graduated-reduction financial register. I represent people approach. We could argue here until Committee as to prospective tax income for 1947, I am convinced that the Fed who work and people who live off of next Christmas and beyond, if we all eral budget will be balanced, and that invested capital. In my district is to be stubbornly opposed any tax-reduction found every nationality, color, and creed bill except the particular one which we a substantial sum will be made available in Chicago. There are people of Irish, favored. The country looks to this Con to pay on the national debt. However, German, Scandinavian, and Slavic de gress for accomplishment. We must get no one can predict with any degree of scent; there is a large Italian-American on with the great work which lies ahead accuracy as to the curtailment in Fed population and a .large Jewish popula of us. Tax reduction is but one, albeit eral expenditures until after we have tion; there is a large colored population; an important one, of the constructive passed on all of the appropriation bills. also living in my district are one-third steps we must take along the path of It is my hope, which will be backed up of the Japanese-Americans who live in progress. with my votes; that Federal appropria Chicago; in addition, there is a large We have before us a good bill. Let us tions can be cut at least $6,000,000,000. number of Filipinos in my district. support it wholeheartedly. Let us give I feel that expenditures can be reduced Every religious denomination is repre the people of this country this relief, so in this amount, or more, without curtail sented. In fact, in my district there is long overdue and so richly deserved. ing essential services that the Federal both a Buddhist and a Mohammedan The CHAIRMAN. The time of the Government should perform for the peo congregation. I. represent people from gentleman from New York has expired. ple. I am also convinced that the ex all walks of life, and I recognize my re Mr. KNUTSON. Mr. Chairman, I penditures can be materially reduced sponsibility in trying to adequately rep yield such titne as he may desire to the for the Military Establishment without resent. them all. gentleman from New York [Mr. JAVITS]. injuring. our national defense and tak This tax bill could not possibly sat Mr. JAVITS. Mr. Chairman, I intend ing care of commitments to which we isfy everyone. There are features in it to support this bill because I believe that have been obligated by the administra which I, myself, would have liked to have people in the lower income and moder tion in foreign fields. I will do my part. seen changed, but it is a good bill, and ate income brackets, now 2 years after in voting to cut expenditures so as to it is the forerunner of other bills which the war, must have some tax relief from bring . about a balanc;ed budget, a sub will lessen the tax burden on the Ameri the high wartime tax structure to help stantial payment on the national debt, can people. them meet the high cost of living-up and tax reduction. I am glad that special consideration over 60 percent since 1939. I was against Under the Constitution, the House of is being given to those in the lower . an across-the-board tax reduction be Representatives must originate all tax income brackets. They are really the cause I considered it unfair to the ordi t ::ns. While I feel that the provision in ones who need relief. I am also glad nary citizen in my district and would be H. R. 1 to make tax reduction retroactive that consideration is being given to those against it today if it were before us .. to January 1 of this year is premature, I who live on annuities and pensions. The further reduction of the tax by one-· am nevertheless voting for the bill so With the increased cost of living, all third-from 20 to 30 percent-for the that it can be presented to the Senate people will welcome tax reduction now, great bulk of the taxpayers in my dis and be given consideration in time for and I am glad to vote for H. R. 1. trict does make enough of a difference' final action before June 30, 1947. In my Mr. KNUTSON. Mr. Chairman, I to ·them so that I must support the bill. opmwn, the tax-reduction program yield 10 minutes to the gentleman from Missouri [Mr. REEVES]. I still do not like the feature of the bill should not become operative until July giving a 20-percent t'ax cut to taxpayers 1, 1947, at which time definite informa Mr. REEVES. Mr. Chairman, I desire up to $300,000. I beli-eve that the cut tion will be available to Members of Con to express my support of H. R. 1. I agree gress and the country as to the amount with what my colleague the gentleman should have been graduated, this 20 from New York [Mr. KEATING] has said, percent cut down materially and the that we have b-een able to cut Federal expenditures. At that time we will also because, like him, I introduced a tax bill saving in the amount available for tax and urged the Ways and Means Com reduction used to increase the tax cut learn as to the amount of tax income for mittee to act favorably upon it. The to over 30 percent for those in the mid at least the first 6 months of this year. fact that it has not yet been given con dle and lower income brackets. How I also feel that a more substantial cut sideration does not in anywise change ever, the need of my constituents for in taxes should be approved for tax my opinion that this bill is sound, and some tax relief to help them meet living payers in the lower-income groups that it must be enacted to relieve the costs is so great that I feel that as their either by way of increased exemptions or American people from the overwhelming representative I must vote for the bill higher percentage reductions than the burden of taxes which they have car with its imperfections rather ._than vote 30 perc·ent approved by the committee in ried in recent years. So far as the ques for no tax cut at all. The figures also H.R.l. tions of the proposed rates, exemptions, show that this readjustment of taxes . '!.'he tax bill will come back to the House and the application of rates to various from war to peace will allow for a sub for· another vote after it has been con income brackets are concerned, the field stantial debt reduction-essential to the sidered by the Senate, at whi • 2752 CONGRESSIONAL RECORD-HOUSE MARCH 27 Let me say to the gentleman who spoke here is another chart I want to show the ship of the House, will, if enacted into a moment ago that the war tax bills Committee. law, take its proper place alongside of passed by almost unanimous vote. By this bill, taking for granted that other special privileged legislation for Percentages can be deceiving. That $3,840,000 tax relief ts conveyed by the which the Republican Party has long Is why 20 percent across the board is bill, you will give tax relief to 4 percent been famous. The gentleman from deceiving. But I am putting it on the of the taxpayers in the amount of Rhode Island [Mr. FoRAND] and other basis of percentages, too. The percent $1,441,000,000-and these are not my Democratic members of the Ways and ages begin with this $3,000 income. There calculations. I asked the actuaries of Means Committee have sponsored an was an increase of 4,650 percent 1946 the Treasury Department to supply me amended bill which will extend relief tax over the 1939 tax. How much do with this information, and they com- to the taxpayer in the lower brackets by you decrease it by this bill? Twenty plied with my request. · increasing the exemptions. This is the percent. · Let us look now at the middle income only practical method to relieve the tax Let us take the $5,000-income bracket. group, making up 43.3 percent of the burden on the millions who create the It was increased 898 percent. How much taxpayers. They will get $1,378,000,000. purchasing power of America. do you decrease it? Twenty percent. And then this lowly income group which Our Nation is just emerging from the · So you are transferring the burden of we have heard so much about, the· 52.7 greatest world war in history and is heav the war debt from those most able to percent, get only $877;000,000. Here it is ily burdened with a terrific national debt. pay to the backs of those who are least in table form. This is what you will be It is the contention of the opponents of able to pay. voting for. the present bill that substantial pay "Take-home pay" is a democratic, UNDER H. R. 1 (KNUTSON TAX BILL) ments must be made on our national debt workingman, farmer term. Every house Four percent get $1,441,000,000 tax and also to balance our Federal budget, wife knows what that means. It means relief. and then our Government should make what they have left to spend after paying Forty-three and three-tenths get $1,- a substantial reduction in Federal income their taxes. ·For this $1,200-a-year-in 378,000,000 tax relief. taxes. · The eighty-odd-million people come man that we have heard so much Fifty-two and seven-tenths get $877,- ·who purchased defense bonds must not about, you increase his take-home pay by 000,000 tax relief. have the value of those bonds jeopardized 1 percent. Take a look at this table: Mr. Chairman, the author attempts to by a politically conceiVed tax bill which Under H. R. 1 (Kntttson tax bill) as amended justify this on the promise that we are . will grant terrific reductions to the tax by Co~mittee on Ways a1td Means going to make drastic reduction in ex payers in the high brackets. Our Gov Married person Percent increase in penditures, that we are going to deeply ernment must continue on a sound fiscal with income of- take-home pay cut cost of government. Weeks ago, policy and we cannot maintain it if the $1.200-~------1.0 this Congress voted a resolution to cut Republican leadership insists on playing $1,500------2.0 $6,000,000. politics with our tax structure. At no $2,000------~------:$3,000 ______2.93.1 A disagreement with another body de time in our history is the average Ameri- . c~n taxpayer better able to make sub $5;000------3.8 veloped. Then conferees were appointed $10,000 ______~-- 5.~ and we waited for a meeting. ·nay -stantial payments .on. our national debt passed and day passed; no meeting; then than during these postwar years of $50,000$25,000------~------______19.711.4 prosperity. We must not postpone this $100,000 ______34. 2 the weeks began to roll by and still no meeting. Finally the distinguished responsibility ·of payment to some future $303~96------72.1 former chairman of the Ways and Means date and have the burden fall on the $500,000 ______~------70.7 shoulders of the boys who fought and $1,000,000------69. 2 Committee made some reference to the strange procedure and promptly a meet won the war. The CHAIRMAN. The time of the ing o! the conferees was called for last I fully realize that the Republican na gentleman from Tennessee fMr. GoRE] Saturday. I was a member of that con tional committee promised the voters has expired. · · · ference committee, and although I am that th3Y were going to cut Federal in Mr. COOPER. Mr. Chairman, I yield not privileged to disclose to you what come taxes 20 percent across the board. the gentleman five additional minutes. happened there, I assure you it was a The chairman of the Ways and Means Mr: GORE. The $303,000-income man rare privilege to attend, and I assure you Committee for several months has been gets a take-home pay increase of 72.1 further that those noted Aristotelian assuring the American people that this percent-$47,000. logicians of the Middle Ages who spent would be done. We find that he has The man who earns $1,200 per year long hours debating upon whether there even retreated from his position. will receive an increase of $11.40 in his was a homo genus and how many angels The legislation which will undoubtedly take-home pay, per year. could stand on the point of a needle would pass the House this afternoon is noth What does this mean to him? How have felt delightfully at home in that ing more than an empty gesture to the much can this man buy with that take conference. · American people , that the Republican home increase. He may be able to buy Mr. McCORMACK. Mr. Chairman, leadership is carrying out its wild cam a cheap spring hat for his wife. But will the gentleman yield for an inquiry? paign promise. I do not believe that the what can the man with an additional Mr. GORE. I yield. Republican leade1·ship in this House have take-home of $47,000 do with his extra Mr. McCORMACK. Where is this con any serious hope that House bill No. 1, as change? He can buy a dozen $50 hats., ference report now? Most of us are won it now stands, will ever be enacted into a mink coat, pay the grocery bill for dering where it is. law. This bill will merely serve as an an entire year, buy a new car, buy a new Mr. GORE. It is in the bosom of the instrument for the Republican National home at $20,0-CO, and pay cash for it; buy Republican leadership of the Congress, Committee to present to their corporate -a farm for $10,000 for a hobby, and pay and there I predict it will remain until campaign donors as evidence that they cash for that, too. the tax bill is passed. are endeavoring to recompense their Moreover, he will have enough left to Much has been said here today of the benefactors for the great campaign slush buy a yacht, I mean another yacht, for: spending spree of the Democratic admin fund of 1946. of course, he probably already has one; istration. Well, who are the spenders Millions of the smaller American tax and he can pay his membership in the now? In the first two appropriation bills, payers will. become acquainted with the golf club, take a cruise, a vacation, and this Republican House has appropriated tax-reduction provisions of this bill by still have $5,000 left with which to gam 50 percent more money than was ap the November election of 1948. They ble on the 'stock market. Is that what propriated to run the whole Government will then learn that the policy of the you are going to vote for? Well, that is in 1938. Republican leadership toward the masses what you will vote for if you vote for Mr. COOPER. Mr. Chairman, I yield has not changed since the lush days of the Knutson bill. such time as he may desire to the gen the Republican leadership in the 1920's. Mr. KNUTSON. Mr. Chairman, will tleman from Indiana [Mr. MADDEN]. Young America ·and the World War ll the gentleman yield? Mr. MADDEN. Mr. Chairman~ House veterans will see in this bill a scheme to Mr. GORE. I am sorry; later. No bill 1, known as the Knutson . tax bill, pass on the double burden of both fight wonder the gentleman is disturbed, but and sponsored by the Republican leader- ing and paying for World Warn. • .1947. CONGRESSIONAL RECORD-HOUSE 2753 On account of the Republican major ingman directly, by decreasing the tax increased purchasing powe1· to those in ity, it will be impossible to defeat. this ·on his income, but indirectly, by releas the lower-income brackets. The Nation bill, but I do hope that the Democratic ing a stream of venture capital from the will welcome this reduction, I am con membership remain solid and, with the upper income brackets into the field of :fident. Another provision contained in aid of a number of Republican Mem · productive- enterprise. This would not this bill, with which I am in complete uers, a sizable protest be registered · only enable established businesses to ex accord, is the provision granting to aH against this ill-advised tax legislation. pand, but allow the creation of new in those who bave attained the age of 6v Mr. REED of New York. Mr. Chair dustrial undertakings. The obvious re years an additional exemption of $500. man, I yield 5 minutes to the-gentleman sult is higher wages and more and better It is common knowledge among the from Pennsylvania [Mr. McGARVEY]. jobs for the workingman, who, ·accord Members of the House that the aged peo Mr. McGARVEY. Mr . . Chairman, ing to some, is so abused by this bill. ple of our country, those who have at much has been said lately of the need I would like to say here and now that tained the age of 65 years, are struggling for party unity. For this reason, I am · though I may be a freshman in Congress, to secure jobs, and many of them are un puzzled by those Republican Congress I am not a freshman in politics.- I know able to secure a job of permanent char men, who, in statements made on the what the people of my district want. acter. The mere pittance of their earn fioor of the House or to members of the They want tax relief, not 1 year or 2 ings, or the small amount which they press, openly criticize the proposed iri- years hence, they want it now. This is may receive by way of income of any . come-tax reduction. , the Republican PartY,'s first chance to character, is quite soon absorbed in the This is a party measure. It helped · give the American people what they payment of taxes. Under the• pending us to win the election in November, and voted for last November. It is expected measure these people, who are over 65 now we are being asked by some to . of us. Let us, therefore, cease this use years of age, will receive an additional forget its existence. less talk of revisions and amendments. exemption of $500, which will be very The original plan, calling for a 20-per Above all, let us stop, right now, any helpful, I am certain. I fully approve of cent across-the-board reduction, has· move favorable to the complete aban the action taken by the Ways and been changed in favor of the present donment of- the meastire. Means Committee with _respect to the measure, but still the critics are not This is a sound tax bill. It not only aged people of our country. I am confi · satisfied. They w·ould prefer still fur paves the way for better tax bills, but dent all of the other reductions con . ther revisions, or, better yet', a, complete is a necessary start in the restoration of tained in the bill, now presented to the shelving of the bill. · the economic stability of our country. Committee of the Whole House, will They call it a rich man's bill. They I therefore.urge your enthusiastic sup meet with the general approval of the claim that it benefits those in the upper port of this bill. This is our chance to Members of the House, and that it will income brackets to the detriment of show the American p'eople that the Re be universally approved by the people the workingman and farmer. Mr. publican Party does not make a mockery generally over the country. . Chairman, to me this pitting of class of -their campaign promises. Mr. Chairman, there is another, and against class. sounds strangely like . the Mr. REED of New York. Mr. Chair a most potent, reason for my approval beginnings of new dealism in the Repub man, I yield such time as he may desire of this measure and of all measures lican Party. Apparently some of our to the gentleman ' from Indiana [Mr. which will reduce the spending of the Members have forgotten the answer to SPRINGER]. ' taxpayers' money, and which will {orce that question heard so fr-equently before , Mr. SPRINGER. Mr. Chairman, I de the Departments of our Government to the last election. Perhaps they have sire to make a few remarks respecting reduce' their personnel and employees, forgotten the question. H. R. 1, which is now pending before this and which will place a firm and definite Well I, for one, have not forgotten Committee, and which measure provides limitation upon the amount of money that my constituents had enough and ·. for the reducti-on of individual income our Government will have available for voted for me in a district that has not tax payments. At the very outset, I wish spending, and that is this-the people had a Republican ·Congressman in 16 to state that I intend to support this have reached the end of the road in years. And I would like to make it clear measure. · It is high time that the peo their ability to pay, and they are entitled that it is not a rich man's district. The ple of this country have some tax relief. to a respite from this constant demand people in it are, for the most part, work During the war, and since the end of for more taxes, and for more money. ing people arid low:.income wage earners. the .war, the people have struggled, and The earning power of our people is These same people write me daily urg they are continuing that struggle, to largely fixed. Their resources are being ing my support of this so-called rich save and to prepare for the payment of sapped away by the payment of very man's bill. their income taxes. These are certain, high -taxes. They are, therefore, unable One Congressman, who opposes the as long as the law provides for such pay to purchase the commodities they need, bill for reasons best known to himself, ments. It has been written that there and they are unable to employ the people has decided that the new Members are . are two certain happenings in our lives, they should have to make repairs, and to to blame for the desire to produce an and these are death and the payment of · engage in construction; their purchasing effective tax bill. As you can readily taxes. That statement is unqualifiedly power is limited by the imposition of see, he picked an easy target. What true. These are "fixed charges" against these high and all-absorbing taxes, and · does a freshman Member do in Congress us, and the only variation is in the it was with this thought in mind, to but keep his mouth shut? His remarks amount of the tax charges, and this great gether with the desire to help the people that business interests have threatened legislative body has the power to fix just in the lower income tax brackets, and the new Members with withdrawal of their what that charge may be. In the pend aged people, that this bill was prepared support in the next election unless they ing legislation this body is called upon to and introduced. It is my fervent hope vote for the tax bill belongs in the in fix the amount of the tax charge against that this measure will be promptly passed teresting if true department; a polite the people of this Nation. by the House of Representatives, all to way of saying pure "bunk." Mr. Chairman, the people are eager the end that the much-needed relief pro If anyone has used coercion in regard for some tax relief. In the passage of vided in the bill may be extended to the to this matter, I would say it was he. the pending bill, I am certain that relief people generally in our country. This This gentleman issues dire warnings of will be extended to them. I am very measure, written into law, will also be a the loss of the little man's vote. To lis proud of the fact that the Ways and firm limitation upon our Government in ten to him for any length of time, one Means Committee has approached this the spending of the people's money. It would come to believe that we proposed problem upon the basis of the ability of will be a signal to those in control of to raise the income tax, instead of lower the people to pay taxes, and they have our Government, and the many and var ing it. seen fit to make a reduction to all those ious agencies thereof, to stop, look, and This distinguished gentleman is so en in the lower and small-income brackets; listen, a signal which has not been pre grossed with his press interviews that he the small-income earner, regardless of sented during the past 14 years. It is apparently has not had the time for a what his vocation may be, is entitled to a my considered judgment, Mr. Chairman, careful study of the measure.. If he had, reduction of his ta.x-he desires to en that this action is wholesome and that he would see the folly of his rantings. hance his power of purchase, and it is this legislation will redound to the ulti Not only does this bill benefit the work- wholesome to our Nation to grant that mate benefit of the people in our Nation. XCIII--174 2754 CONGRESSIONAL ~ECORD-HOUSE MARCH 27 This measure should be passed without a Democrat fl'iends took control of the three chickens on the platter instead of dissenting vote. House in 1933. They continued in con two. What do our Democratic friends Mr. REED of New York. Mr. Chair trol with an overwhelming majority for know about reducing taxes, reducing ex man, I yield such time as he may desire 16 years and during all of those years penditures, and reducing the national to the gentleman from -Massachusetts they did not present a real tax-reduc debt? They are experts on increasing [Mr. GoODWIN]. tion ·bill. On the contrary, they in taxes, expenditures, and the national Mr. GOODWIN. Mr. Chairman, when creased taxes and the national debt, and debt .. we pass this bill today, we will be fur it is a real pleasure to me, for the first I first carrie to the House in 1919. nishing additional proof that we propose · time in 16 years, to have the oppor Our Democrat friends had run true to to keep faith with the American people. tunity to speak and vote for an honest form during the years they had control They are looking to us to give them some to-God tax-reduction bill, a bill that of the Congress. _ They had raised taxes measure of relief from the burden of gives substantial tax relief to those with sky high. They bequeathed to us also individual income taxes. They have small incomes, to those of moderate in a great national debt. The Republicans courageously and patriotically carried comes, and some relief to those who have secured control of the Congress and the this burden during the war yearsr but larger incomes who provide much . of executive branch on March 4, 1921. The now at the threshold of the third peace the investment capital which creates high war taxes and the big debt were time year they desire and deserve such jobs and more tax-producing incomes. there. The Republicans proposed to re tax reduction as will enable them to save We have had a lot of figures submitted duce taxes and reduce the national debt, from their earnings something more to here by our distinguished friend the gen but our Democratic brethren brought in · spend for themselves and for the in tleman from Tennessee [Mr. GORE] ana figures and more figures, and also a lot creased comfort and enjoyment of their others. I have always heard that figures of Sam's logic as they have been doing families. · do not lie. I am glad to observe that here for the last 2 days on the present We should fail miserably in our obliga our friend the gentleman from Tennes tax bill. They insisted that taxes should tion to our constituents if we did not pass see [Mr. GORE] admits that he did not not be reduced and should riot and ought on to them as taxpayers the savings make the figures he presented here. You not be reduced. They almost shed tears which can be made and which we are know a lot of people make figures. Some pointing out how the reductions of taxes going to make by eliminating unneces good folks as well as others submit fig and the debt would ruin the country and sary· items in the cost of the Federal ures to uphold their contention· but are destroy the Republican Party. TheRe Government. very misleading. The gentleman from publican Congress did reduce the taxes It is natural that there should be a Tennessee [Mr. GoRE] reminds me of a . in 1921 and in that year paid a billion difference of opinion as to how. most story that I heard about a young man dollars· on the national debt and had a equitably to apportion to the different . in my own congressional district. He surplus because the lower rates had en income brackets the tax _savings to .- be was one of two brothers whose father couraged business and brought on an era effected by· cutting down Federal ex was a farmer. One's name was Sam .and of greatest prosperity this country has penses. I feel certain the committee the other Levi. The father was unable evel· witnessed. A number of other has approached this problem 'with ana to provide funds for a college education tax-reduction bills were passed by the lytical care and has reached a solution for both of these sons. He decided to Republicans before the depression in which will work substantial justice to send the elder son, Sam, to one of the 1930, and in 10 years we not only pro the entire taxpaying public. leading universities. Sam majored in vided well for aU of the agencies of the The benefit of the full 30-percent cut logic. After 5 years, and in the month Government but reduced the national is given to that great army of taxpayers of June when chickens were large debt by $10,000,000,000: It did not ruin whose income falls into the lower brack enough to broil, Sam returned to his the country; it did not ruin the Repub ets and who have been hardest hit by the home with his degree in logic. Levi had lican Party. So now these wild stories increased cost of living. At the same very limited educational opportunities. we now hear from our Democratic friends time the bill recognjzes the necessity for Sam daily astonished his father and that we cannot reduce taxes, that it will affording a tax reduction for those whose brother with his discourses on logic. He ruin the Nation and the Republican claimed by. the process of logic he could · Party. do not disturb me. taxable income is larger. The Democratic Party again got con- In this latter group are those upon prove black is white, green is red, and so on. · Sam· said one day: "You think . trol on March 4, 1931. They proceeded to whose capital we rely for the financing increase-taxes, proceeded to increase the of those business ventures so essential we are hoeing corn here on the south side of the Rockcastle River, but I can national debt by leaps and bounds in for an expanding economy. peacetime and before we entered the We must encourage the free flow of prove by the process·of logic that we are on the north side Of the Rockcastle war they had increased the national debt this risk capital if we are to maintain by more than $40,000,000,000 and the and increase a high level of production River.'' Finally the dinner bell rang and they went to the house for dinner. taxes also went up by leaps and bounds. and employment. I made the prediction some time after the Thus this bill will -·furnish incentive for The mother had broiled two fine young chickens and they were before them on Democrats took control that they would business expansion, stimulate our na increase taxes and increase the national tional economy and build up the wealth a platter. The father returned thanks and then was about to carve the chick debt so long as they remained in power. of the country. All our people will be That prophecy was fulfilled. I know you able to enjoy a higher standard of living ens and serve them to his two sons and himself. Sam, the logician, said: boast of the fact that in 1945 you did put through full production, and a corre through a tax-reduction bill but that was sponding increase in gainful employ "Father, now wait, I am going to prove to you that there are three chickens on a real "phony" tax-reduction bill. You ment. decreased taxes that year when we had a I am confident that the passage of this that platter." Levi remarked, after he became a man, in telling the story that deficit for that particular fiscal yP.~tr star bill will be enthusiastically hailed by the ing us in the face for more than $40,000,- great rank and file of our people as proof his brother Sam convinced him that 000,000 and in that same year and at the that this Eightieth Congress proposes to there were three chickens on the platter same time tJ;lat you were putting through move with expedition and certainly to instead of two. The father, however, that tax-reduction bill, a great campaign take from their backs the burdens listened patiently until Sam got through. was put on all over the Nation to sell brought on by the exigencies of war; to Then he took a fork and put one chicken · some 15 or more billion dollars worth' of give them now the privilege of having and on his son Levi's plate, and the other one bonds. In other words, while you were spending for themselves the tax-savings on his own plate and said: "Now my son handing out a tax reduction in one hand made by cutting the cost of Government Sam, as you proved to your own satis you were increasing the indebtedness of and by eliminating Federal employees no faction that there are three chickens on this"country by 15 billion or more. Now longer necessary, fit the Federal pay roll the platter, you may have the third you argue that 'with a surplus confront to the pattern of a peacetime economy. chicken for your dinner." ing the country for the coming fiscal Mr. REED of New York. Mr. Chair Now my colleague the gentleman from year of many billions of dollars that we man, I yield 10 minutes to the gentle Tennessee [Mr. GoRE] and other good cannot have a tax reduction. While man from Kentucky [Mr. ROBSION]. Democrats have, by the use of a lot of many of us supported and voted for that Mr. ROBSION. Mr. Chairman, I arise hypothetical figures and some of Sam's tax-reduction bill as it was the first ges in support of H. R. 1, as amended. Our logtc, tried to convince us that there are ture toward the reduction of taxes in 14 1947 CONGRESSION.AL RECO.RD-HQUSE 2755 years, I pointed out in a speech on the Republican- Party and they have con now retain from their income 23¥2 cents floor of the House what a ridiculous pro sistently in this debate chided the Re out of each dollar. posal it was with 14 years of going in publicans for having promised the peo It would not be much encouragement the red and a tremendous deficit for that ple last fall that if they were given con for a man to invest his money in job particular year, we were going out and trol of the Congress, they would balance producing and tax-paying enterprises borrowing billions of dollars by selling the budget, reduce taxes, and pay a sub if he must take all the risks of loss and bonds in order to secure the money to stantial sum on the national debt. The be permitted to retain no more than pay for the reduction in taxes, and it was Republicans did agree to balance the 13% cents out of each dollar for him to take effect on Jimuary 1, 1946. Were budget, reduce, taxes, and pay on the na self. Now, let us see how consistent our our Democratic friends thinking about tional debt. That is what I promised friend, the gentleman from Pennsyl the big election in 1946 involving the con and I believe that is what every Repub vania [Mr. EBERHARTER) is. He is an trol·of the House and Senate? In selling lican in this House promised. able Democratic member of the great these bonds we placed a first mortgage Who ever heard of one of our Demo Ways and Means Committee. He intro on the property and resources of every cratic brethren going, over his district duced a tax-reduction bill in the present kind of the people of this country and last year and telling the people he was Congress which fixes the maximum taxes used more than one half of the money against reducing taxes? Why did not to be paid by corporations as well as in to put through a phony tax-reduction our Democrati.c friends, who are today so dividuals, at 50 percent of their income. bill. Of course, it was unfair to the vigorously opposing any and all tax re Yes, he would let the biggest corporations Amelican people. That is just like a ductions, tell the people before the elec and the richest men' in this country off bank or a business concern putting a tion last year? I heard no Democrat at 50 cents on each dollar of their in first mortgage on their property to se last year in the House before the Novem comes. Yet, for some strange reasons, cure _money to pay a dividend. If a ber election, or elsewhere, claim that he he denounces the present bill as being board of directors did that in a bank wo_uld oppose the reduction of taxes. too liberal to the rich when it fixes the they would be put in jail and that would Insofar as I have observed. our Qemo-. tax at 76~ percent on . individual in be true in some cases of any business cratic friends joined with the Repub comes. concern. licans in urging the balanCing of the This bill does not reduce in any way · The bill before us will give a cut of 30 budget, the reduction of taxes, and re or at all the high taxes on corporations. percent on the present taxes to prac ducing the national debt. His tax bill and his speech, according to ticaUy 30,000,000 American taxpaY.ers I, as one Republican, intend to carry my lights, is very inconsistent indeed. - in the low ·income brackets. This will · out that pledge insofar as it is in my Later on the Congress will consider the save several billions of dollars in taxes power to do so. I want to keep the prom taxes of corporations, ·both large and to these 30,000,000 low-income taxpayers ise I made last fall to the people. that I small, and also excise taxes. This bill of the Nation. Those who have a · net represent and the American people, and deids solely and only with individual in taxable income above $1,400, and this I feel sure that practically every Repub come . taxes. If Mr. EBERHARTElt'S bill means after deducting all exemptions, lican in this House will do ·likewise. If should be adopted now, we could give and up to $300,000 Will receive a net re we have any Republican who has any very little relief to the income-tax payers duction in their taxes over present taxes doubt as to the popularity of this bill in the lower brackets and also to those of 20 percent. Those that have a net among the Members . of this House, as in the brackets of moderate incomes, but income now. of about $300,000 and are well as the Amelican people, I want such as it is, a man and his wife with two chil paying 86% percent will have a reduc Republican to listen when the roll is dren will pay practically no taxes on an tion of 10 percent on their present taxes. called in a short time and see how many income of $2,500 and will pay very little In other words, the taxes will be reduced of·our brethren who have been opposing if his irl.come does not exceed $3,300 . .The to 76 Y2 percent. Persons who are 65 our efforts to reduce. taxes vote fot the additional exemption of $500 fot· persons bill. I am sure tliat many of our Demo-· years of age or older will reeeive an addi 65 years of age will take perhaps a million tional benefit in exemptions of $500. cratic friends will remember the prom ises they made last fall before the elec of needy old people from the tax rolls. If a man and his Wife each are 65 years Tllis bill brings substantial relief to more of age, each of them will be entitled to tion and forget some of the speeches that were made on the floor during the last than 50,000,000 income-tax payers. this $500 exemption in addition to .the Some countries, for whom we have present exemption of $500 fo-r each of few days and will vote for this bill. I have every· reason to believe that the bill done so much and who still today owe us them. This, of course, is to bring some biUions and billions of dollars, have since relief to nearly a million .and a half aged will be adopted by a vote of perhaps people in this country who have small 2 to 1 or more, and I . honestly believe the war e~ded given their people sub incomes and wl:'.ose productive or earn that these Democrats who will vote for stantial tax reductions. The Australian ing capacity is practically at an end. the bill will be rendering a real service Government, that owes us a great deal to themselves and to our country. It of money, has given to her people two Two able former Under. Secretaries of tax reductions since the war. We have the Treasury .under President Roosevelt will be much easier to explain a vote for this bill, giving substantial reductions to been and still are the Santa Claus for strongly endorse this bill in their testi all groups of taxpayers, than vote op mony before the Ways and Means Com a the world. VVhy not do a little Santa posing a tax reduction to all groups. I Clausing for the tax-burdened American mittee. am sure that e-ach and every Member people? Mr. KNUTSON. What does the Good will find it much easier to explain his vote I have voted for- many tax bills during Book say about straining at a gnat and in keepi.bg his promise than in giving a swallowing a camel? my years of service in the House and vote contrary to the pledges he has made. Senate and this is the most popular· and Mr. ROBSION. Our Democratic One of the most vigorous speeches fairest tax bill that I have ever had an friends appear to be doing that very made agairist this bill was by our good thing. opportunity to support. Of course, I friend and colleague, Mr. EBERHAR'IEB, a wish the reductions could be much more DEMOCRATIC LEADERS OPPOSED Democrat fr~m .the State· of Pennsyl than they are. These reductions amount President Truman and his leaders, tor vania.. He declares that he opposes the to approximately $4,000,000,000. The some time, have expressed strong oppo bill because we have not cut the incomes American people will have just that sition to any tax-reduction bill. TheRe of the rich enough and have given too much more to spend for the necessities publicans again have inherited from the little consideration in the lower brackets. of life, their other requirements, and to Democrats the highest national debt in VVhat percentage of taxes do the so invest in homes and business enterprises. proportion to its :Population of any coun called rich pay at the present time? We hope, by restricting the waste of the Eighty-six and one-half percent of their try in the world and the highest pro rata tax money of the people, that there can taxes of any country in the world. Much net taxable income, or in other words, of this was due to the reckless squander they give to the Government in taxes be another tax ~ reduction in the latter ing of the people's tax and bond money 86% cents out of every dollar of their part of this year or next year. by the New Dealers for the last 14 or income and they have left only 13% CUT EXPENDITURES, TAXES, AND PAY ON NATIONAL more years, and, the Democrats now say cents out of each dollar for themselves. DEBT we cannot and must not reduce taxes or This bill reduces their taxes 10 cents on Our Democratic friends insist that we we will ruin the country and destroy the each dollar of their income and they can cannot cut taxes. They have denounced 2756 CONGRESSIONAL RECORD-HOUSE MARCH 27· us for our efforts to reduce the Presi The President estimated that ·our rev joined the chorus of promises to reduce dent's budget. The position of the Re enues this year will amount to $38,900,- taxes and reduce the national debt. publicans is that we can balance the 000,000, but it was conservatively esti I, for one, as a Republican, and I be budget; we can cut taxes, and we can pay mated by those who know that the reve lieve every Republican in this House will a substanti-al sum on the national debt, nues will amount to $39,100,000,000 on a do the same, am going to respond and and we must put forth every honest and basis of an annual income from. all keep the promises that we made to the reasonable effort to do so. sources of $165,000,000,000, but it is now American people last fall. When the Every day we hear the threat that claimed that the annual income of this roll is called, I wish some of my dear President Truman will veto this tax bill. country from all sources will be at least Republican friends who may be hesitat I sincerely pray that he does not follow $175,000,000,000. This, of course, will in ing on this question will listen to the roll that course, but if he does and we cannot crease the taxes proportionately. It is call and see how many of our dear pass it over his veto then it becomes his now generally admitted that the reve brethren will remember the promises responsibility and not the Republican nues of this Government for the year they made last November much more Congress'. beginning July 1, 1947, will amount to at than they remember the speeches that Let us examine for a moment this situ least $41,000,000,000. -If the cut of the they have made on the fioor in the last ation. We must do it because this was budget is not more than $5,250,000,000 few days. Many of them- are going to the _pledge by the Republicans and prac this fixes the President's budget at $32,- vote for this bill. tically all of the Democrats before the 250 ,000,000; there will be a surplus of ap Mr. DOUGHTON. Mr. Chairman, I November election in 1946. The 30-per proximately $10,000,000,000. This tax yield such time as he may care to con cent reduction will apply to 30,000,000 or reduction bill will cut the revenues ap sume to the gentleman from Arizona more taxpayers. These 30,000,000 will proximately $3,850,000,000. But assum [Mr. MURDOCK]. include single persons earning up to ing that the tax reduction will amount Mr. MURDOCK. Mr. Chairman, for $1,667, married men, with wives, earning to $4,000,000,000, then there would still the last 10 years I have heard my Repub up to $2,222, and married persons with 2 qe a surplus of approximately $6,000,- lican colleagues talking about balancing dependents earning up to $3,333. The 000 ,000. the budget and demanding that it be 20-percent reduction will go to some 15,- It has been urged that we apply two done: Now, I maintain it will be impos 000,000 taxpayers whose net taxable in and a half billion dollars on the national sible to balance the budget this year if come ranges between $1 ,400 and $302,- debt. This would still leave a surplus of we pass this bill. Therefore I regard this 396. The $500 additional exemption will three and one-half billion. Now, why bill as dangerous to our economy if passed give relief to 1,400,000 persons who are should anyone argue that we cannot re now, to say nothing about the unfair 65 years of age or over. There are 922 duce the taxes to the amount provided in ness and injustice of the methods used taxpayers only who will receive the 10 this bill? It can be done, and it must be in it. percent or more reduction: This bill will done, in the interest of all of the Ameri The provisions of the Reorganization bring relief to all individual income tax can people. Nothing could give the Act, admittedly difficult 'to carry out in payers of the Nation. Of course, this is American people more encouragement, the beginning of a . new Congress, ap based on a reduction in the expenditures stimulate business, and provide jobs. I pears not to have been fully carried out of this Government. realize how difficult it is to -cut expendi with respect to budgetary matters. The President Truman sent his budget to tures with the present administration in theory of the new law is correct and Congress asking for $37;500,000,000 for charge of the executive branch of the good, I believe, and is presumed to enable the fiscal year beginning July 1, 1947, and Government when they have been, for a balancing of the budget, but congres ending June 30, 1948: President Roose many years, following a course of taxing sional action taken thus far under the velt was rated as the greatest spender and spending. We must restore honesty, new law has not been adequate. Bal at the head of any government in all economy, and efficiency in our Govern ancing the budget presupposes a very history in peacetime. The highest ment. How can we justify spending. safe· and sane estimate of anticipated budget he ever asked for was about $12,- three times as much in a peacetime year revenues and also a conservative figuring 500,000,000. President Truman is asking as Mr. Roosevelt spent in any peacetime of all imperative expenditures. ·It is my for three times that amount for a peace year? Let us bear in mind that every information that we have had neither, time year. I realize fully there is some dollar we take from the American people aside from the President's budget of sev increase in the expenditures of our Gov in taxes takes just that much away from eral weeks ago . . It is for this reason that ernment but we certainly are not justified them in purchasing power. Of course, it seems unwise and dangerous to bring in calling upon the American people to some persons hint that We may soon get a tax-reduction bill before Congress at provide three times as much in a peace into another war. We should b') dedi the present time before supply bills are time year as Mr. Roosevelt called for, cated to do all within our power to avoid passed. · with all of his officeholders, bureaus, another costly, bloody, and destructive Only two of the appropriation bills commissions. agencies, relief. and so war. have thus far been acted on by the forth. Believing as I do that this bill, while it House, and neither of them has been Under a law passed in the last Con is not all that I should like, yet under the acted on by the other body or enacted gress; the Congress must before the be circumstances it is the very best bill that into law. It is a safe guess that both of ginning of each fiscal year examine the we can bring out under an administra those bills will total a greater amount President's budget and then fix a budget. tion that thinks in terms of heavy taxes of expenditure than they provided for as The Republicans in the House after ex and big spending. they left this body. I think such is a amining the Presidimt's budget decided Mr. KNUTSON. What does the Good safe guess concerning every one of that it could be cut at least $6,000,000,- Book say about straining at a gnat and the following appropriation bills. How, 000 without doing harm to the effi swallowing a camel? then, can we know with any certainty cient operation of our Government, and Mr. ROBSION. Yes; the Republicans what our bedrock expenditures must be did pass a measure cutting the Presi agreed to balance the budget, reduce for the coming year? dent's budget six billion, leaving a bal taxes, and pay on the national debt. Not only that uncertainty but several ance of thirty-one and one-half billion. That is what we promised. That is unforeseen expenditures have arisen The Senate cut the budget four and one what the people want. That is what I since the· President sent his budget to half billion. We are informed the Sen promised. That is what I believe every Congress a few weeks ago. Those in ate has offered to compromise on the Republican sitting in this House prom charge of our foreign affairs, both inside basis of a cut of five and one-quarter ised. Whoever heard of one of your and outside of Congress, both Democrats billion and there is no doubt but what Democratic brethren going out into his and Republicans, know that there must the minimum cut will be five and one district last year and saying that he was be large expenditures of money which quarter billion. If it cut six billion against reducing taxes? Why, you did were not contained in the President's then the President will have thirty-one not do that, and if anyone did, let him budget. That great Republican leader, and one-half billion to spend next year. stand up now and let us find out who it ex-President Herbert Hoover, has re If it is cut five and one-quarter billion was. So far as I ever heard any of cently joined with President Truman he will have thirty-two and one-quarter them speak on the floor of the House be since the President's budget was sub billion to spend· next year. fore the last November election, they mitted to Congress in recommending 1947 CO·NGRESSIONAL RECORD~HOUSE 2757 hundreds Of ·millions of dollars of ex- known, one of the :first questions that records of the Treasury Department show penditures in connection with our foreign came into the mind of the American that nearly 50 percent of the dividends affairs and particularly for the purpose people was whether or not the Repub of industry are received by those receiv of feeding the starving peoples of the Old lican Party would follow its traditional ing incomes of less than $5,000. This will World. The result will be that the Presi- policy of catering to wealthy interests show you where investment money in the dent's budget will be enlarged even more with almost total disregard for the wei past has come from. than it can possibly be reduced by sav- . fare of the average little man. If we are ever going to place this ings. Such savin.gs as an economy- All of their protestations· to the con country on a sound business basis we minded Congress can make in the regu- trary notwithstanding, the answer to this have got to have a systematic method of lar budget cannot ir.. all probability begin question is found in H. R. 1 which gives reducing our national debt which now to equal the loss of revenue by this·tax- · tremendous tax relief to those in the stands at approximately $260,000,000,000. reduction bill. upper brackets and who are most able to Why not start on this task while our Saying nothing about the justice or in- · pay while giving only a token relief to national income is now at an all-time justice of this method of tax reduction- those who are at present forced to pay high? Preliminary estimates put the on which a great deal could be said-it taxes on their bread and meat money. national income· for the year 1947 at is perfectly obvious that a reduction at ·I denounce this bill, H. R. 1, as nothirig $166,000,000,000 but according to reports this particular time is unwise in the light but an attempt to railrOad through this · compiled after January and February, of all circumstances and because of our Congress under the guise of general tax it will be nearly $177,000,000,000. This, lack of knowledge of conditions as they relief; a measure that ignores all of the gentlemen, is the time to reduce the debt will be 2 or 3 months from now. The original intent of the sixteenth amend while the national income is high. Then majority party in its zeal' to carry out ment, the authority under which income later in the event of a business recession, preelection promises is getting the cart taxes are levied. we can effect a large reduction in taxes before the horse in this attempt to re- The original intent of the sixteenth and make a smaller payment on the na duce taxes be::ore balancing the budget. amendment was to provide a method of tional debt. Let me point out to you, The feeling on our side is that the value taxation according to ability to pay. gentlemen, that nearly $5,000,000,000 in of the dollar is jeopardized and the in- · - This bill ignores that intention by giving the proposed budget is solely for the tegrity of United States bonds held by the most relief to those most able to pay. purpose of paying interest on this tre 85,000,000 of Americans is also jeopard- It is interesting to note that in the mendous obligation. A reduction in the ized. For that reason I feel that this bill time of need for greater income to the national debt would automatically lower is unwise in several respects but espe- Government, the heaviest increase in the interest item in the budget which cially because it is untimely. It has been proportion to income is always laid on would enable Congress to effect even given first place over other fiscal steps - those in the lower-income brackets. lower reductions in taxes. which are more important. It should be Why th~n. I ask you, should not the It is generally conceded that the famil;y recommitted. same method be applied when trying to is the basis of civilized society. The in Mr. DOUGHTON. Mr. Chairman, I grant relief? I say to you that the adequate exemption provided in the pres yield such time as he may care to con- method of tax reduction proposed in ent tax law offers no inducement or en sume to the gentleman from South Caro- H. R. 1 is grossly inequitable. That the couragement whatsoever for a young lina [Mr. RICHARDS]. bill would give too little reduction to wage earner to marry and raise a family Mr. RICHARDS. Mr. Chairman, this lower incomes and relatively to·o much to because everyone knows that the present bill is indefensible from any standpoint. higher incomes can be seen by looking at exemption will not cover the expenses It is a political bill from every stand- the effect of the proposed reduction on of raising a child. Court records show point. net incomes after tax and by comparing that the largest share of divorce cases Here we are with the greatest debt ever taxes under the bHI with those in effect grow out of couples who have no chil confronted by any nation in the history before the wartime increases. Tax relief dren. Raising the personal exemption of the ·world, and this bill laughs at that at the bottom of the income scale is not might be some small inducement to com fact. significant in relation to tax burdens at bat the high divorce rate in this coun . The Republican Party need pose no these levels and the incomes left after try and at the same time make the basis more as the champion of sound fiscal present-law taxes, by comparison, are of our society more secure. policies in governinent because the pres- disproportionately increased at the top The only equitable way of reducing ent tax bill violates every rule of good of the scale. H. R. 1 would wipe out taxes at this time is by raising the per business. For this Government to re- most of the wartime increases in taxes sonal exemptions. The personal-exemp main solvent, the budget must be bal- on very large incomes while leaving taxes tion section of the income-tax law was anced, expenditures reduced, and a sub- on other incomes much higher than be originally supposed to keep the taxpayer stantial payment must be applied to the fore the war. from paying taxes on the necessities of public debt. The national income is now · In effect, this bill , 2758 CONGRESSIONAL RECORD-HOUSE MARCH 27 No, Mr. Chairman; this H. R ·1 is no the case, and it is the case, then, under wait in the bread lines until they are more than an ill-advised political ·ges that theory, it would be at least 25 years, ready to come to work at slave-labor ture; and since I have more regard for and maybe 50, before we could begin to wages . . the welfare of the next generation than make any substantial tax reduction. I The pattern that is being followed now I have for the result of the next election, do not believe we should adopt that atti by the Republican party is the same as I must paraphrase Nathan Hale by say tude. I am not willing to wait that long they used after the first world war. ing that "I regret that I have only one to begin. In my opinion the time to be They are shouting communism, while at vote to cast against this tax bill." gin to reduce taxes is now. the same time they are socking labor Mr. DOUGHTON. Mr. Chairman, I I beUeve that debt payments and tax on the head with a whole sackful of yield such time as he may care to use reduction should go hand in hand-that antilabor bills and following a general to the gentleman from Georgia [Mr. the debt should be reduced -to some ex policy of increasing prices and the cost DAVIS]. tent, and that taxes should be reduced to of living for the workingman. Look at Mr. DAVIS of Georgia. Mr. Chair some extent, so as to relieve as much as the recent school teachers' strikes-cer man, I believe the time has come to make possible the heavy burden of taxation tainly no one can aceuse them of being a start toward tax reduction. It has which we are now bearing. . Communists. They do not even belong been necessary to have high taxes for This problem is higher than political to a labor union, but they simply had the last 6 years. We have had to spend partisanship. It should be viewed from to strike because they· couldn't live on enormous sums of money to win the war. the standpoint of what is best for Ameri the salaries they were receiving, Now, The people of the United States have all ca, and not what is the policy of the during the war living costs increased made sacrifices in many directions. We Democratic Party or the policy of the considerably, but the factory workers have bought war bonds. We have plant Republican Party. The fundamental were getting time and a half for over ed and cultivated victory gardens. We welfare of our entire country is at stake, time, and double pay on Sundays. This have canned vegetables, fruits, and food and this question should be viewed from gave them sufficient income to meet the of all kinds. Men and women left ca a nonpartisan standpoint. For these rea increased wartime cost of living. Now reers and went into war-production sons I shall vote to recommit the bill so that the war has ended, these factory plants. Boys and girls left school and it can be amended to give greater re workers are employed only forty hours a college and went into the armed forces. ductions to the lower-salaried taxpayer. week, and in some instances less than We have denied ourselves and our fami If it is not amended, then I shall vote for that. There is no more time anct a half lies many needed articles, among which the bill as it is. From the standpoint of or double time. Their pay checks have are shirts, shoes, clothing, furniture, tax reduction, I believe that some reduc shrunk about 40 percent, but the living washing machines, radios, automobiles, tion is better than none at all, and this costs have not come down. On the con and other durable goods. We adopted bill, while it is not satisfactory to me, trary, there has been a considerable in the slogan: "Eat it up, wear it out, make nevertheless is a step in the right direc crease in the. cost of food, clothing, and · it do." We have now just about worn tion-a step which I believe should be everything since last June, when the Re out the 6- and 8-year-old automobiles, taken at the earliest possible date, and publicans, with the help of some the shirts, the shoes, the coats, and that date is today. of our southern Democrat-Republicans many of the articles that we have been Mr. DOUGHTON. Mr. Chairman, I smashed Government controls. At that using in accordance with that slogan. yield such time as he may care to use to time they promised that ''free enterprise The wage-earning .taxpayer now needs the gentleman from Michigan [Mr. would take care of the situation and liv relief in order to begin to replenish and SADOWSKI]. ing costs would come down." Now, in replace some of these worn-out articles. Mr. SADOWSKI. Mr. Chairman, I am stead of helping the workers, the dis opposed to this Republican tax bill. This abled, the old-aged, the school teachers, I do not think this bill gives enough is a brazen sell-out to the rich and high relief to the low-salaried worker. If it and the white-collar help generally, they income groups. If any tax relief should are proposing to hand over a gift of lay within my power, I would amend this be granted, in my opinion, it should come bill to give more tax reduction to the low millions of dollars more to our rich to those wage earners of $5,000 a year or profiteers. salaried worker. I am sorry that the under, so that the purchasing power of House has voted to consider this bill un the Nation may be maintained, and, Gentlemen, I say to you that the Re- · der a rule which deprives Members of therefore, prosperity and full employ publican Party is done. The masses of the right to submit amendments to it. ment may be realized. I also feel that people realize that they made a terrible - No one has had an opportunity to sub income-tax exemptions should be raised mistake last November. The Republican mit amendments except the members of to $2,500 for married couples, and $500 policy of high prices and inflation for the the Ways and Means Committee, to for each dependent. Single persons consumers and workers, and high profits which the bill was referred. I believe should have an exemption of at least and high income-tax exemptions for the this bill should be amended to provide $1,500. rich profiteers will put them back in the greater reduction in the lower-income This Republican policy of high prices Hoover political gutter. This tax bill brackets. The only way this can be done for consumers, high profits and high tax will hand a full silk purse to the wealthy is to recommit the bill. I shall vote to reductions for the rich, is already re and a sow's ear to the lower income recommit the bill so that it can be sented by the great masses of people, as groups. Nine million taxpayers will get amended to give more relief to the lower recently demonstrated by the teachers' nothing. Twenty-five million taxpayers income brackets. strike and the thousands of letters that I will get an average of $34, and the rest I have · given this bill serious thought am. now receiving. I think this spells the goes to the rich. I remember when they and study. There are serious issues in end of Republican rule in Congress. came here with the infamous Runil plan. volved. In giving it this consideration: This tax bill that is before us now rep Mr. Ruml, the stooge of the millionaires, there are certain facts which appeal to resents a revival of the old Mellon talked about the poor workingman. me, namely, that with the war now over, Hoover policy of siphoning off millions of The Republicans worked out a rebate the taxpayers need some relief from the dollars to the rich on top of the pyramid plan, whereby about $8,000,000,000 of heavy and unusual taxes brought upon in the hope that some little bit will drib taxes were to be refunded. When they us by the war. The term "taxpayer" in ble down to the masses of people. This got through the poor workingman and cludes practically every-American citizen policy will create a lot of millionaires and consumers that they cried and lamented who works or who owns property, I have then another depression, as we had under about would get about $1,000,000,000, and heard the statement advanced that we Hoover. The only way that we can have the rich would get seven billions. This should adopt a sound fiscal policy and continued prosperity is to see that the bill stinks even worse than that one. make a substantial reduction of the na purchasing power of the masses of peo This bill should be called the Knutson- tional debt before we begin to cut taxes. ple is maintained. A good many people Republican swindle bill. · What does that mean? The national are already wondering whether this bill Mr. DOUGHTON. Mr. Chairman, I debt of the Federal Government is today is not really a big sledge hammer to yield such time as he may care to use to approximately $260,000,000,000. It is not smash the labor unions. They feel that the gentleman from Texas [Mr. LYLE]. seriously contended that this debt can be this bill will fill the pockets of the wealthy Mr. LYLE. Mr. Chairman, the passage reduced at a greater rate than three or with millions of dollars, and then they of this bill by the congress will force four billion dollars per year. If that is will close the factories and tell labor to fully demonstrate that this body under- 1947 CONGRESSIONAL RECORD-HOUSE 2159 estimates the intelligence of the majority that he has suffered a net loss for the World War I, the Federal debt was $3, · of the people in the United States. year of $83. Of course, this isn't true 000,000,000. It rose to a World War I It costs $5,000,000,000 each year to pay for the higher-income brackets. For peak of $26,600,000,000 on August 31, the interest on the national debt. Trans example, a Congressman would likely 1919. During the decade of the twenties . lated into terms that I can understand, make a little money on the deal, but in there was a small surplus in the Treasury that means about $35 for each individual asmuch as we have recently increased our at the end of each year and the debt was each year as interest on the national own incomes, I believe it is fitting that . gradually reduced to $16,000,000,000 on debt, and it has been estimated that if we consider those who are in need of December 31, 1930. It was then that our we retire the debt in 100 years, it will financial relief, and the only possible present era of deficit spending, brought necessitate the payment of over $600,- way for this Congress to materially ben on by· the depression, was resumed. By 000,000,000. efit the average man is by reduction of the end of the fiscal year 1940 the debt Other than national security, there is the national debt. had arisen to $43,000,000,000. You will no more important and vital problem for Mr. Chairman, fortunately the people remember it was during that period we the people of this country today than the of this country are intelligent and well heard many arguments as to the ability retirement of the national debt. informed. They understand the issues . of this Nation to carry a debt of such tre The levying of taxes is one of the most at stake today. No individual Member mendous proportions. When some econ unpleasant duties of a Congressman in of this Congress and no party will be omists suggested that the debt might times of peace, but even more unpleas able to purchase the preference of the be increased to $50,000,000,000 without ant than that would be to leave this people with such ill-conceived legisla too seriously affecting our national econ Chamber today with a sense of having tion. omy their views were severely criticized. cast a cheap political vote. I will join the Members of this House, Then came World Warn and argu Taxes are high, burdensome, and se of both parties, in an effort to drasti ments as to the policy or size of the debt vere, but they do not equal our responsi cally reduce the cost of Government, to became academic. Unprecedented ex bilities in our quest for peace and de balance the budget, and to retire the penditures which reached the stupendous cency. The statement made by the ma national debt. And then, Mr. Chairman, sum of $100,000,000,000 in 1945 increased jority party that existing taxes are "a it will be my happy privilege. to vigor the debt to an all-time high of $279,800,- real threat" to the initiative and new ously support a revision of the ta~ laws 000,000 in February 1946. This has been investment essential to a high level of so that individuals and business institu reduced to $259,100,000,UOO as of today. employment is not well founded. tions will be given proper relief and con This reduction was accomplished by sideration in the light of our commit-. applying to debt retirement large out In 1946 income taxes paid by indi ments and responsibilities. viduals in America amounted to $17,600,- standing Treasury balances which were 000,000. Mr. DOUGHTON. Mr. Chairman, I maintained during the war, and not by Expenditures by the American· yield 10 minutes to the gentleman from surplus financing. At the beginning of people for the ·same period for selected Virginia [Mr. GARY]. the fiscal year 1948, however, the Treas consumption of luxury items, and I list Mr. GARY. · Mr. Chairman, the ex ury balances will have been reduced to a them, were $17,600,000,000. Automobiles perience of two world wars within a peacetime level and any further reduc purchased for luxury purposes-a 'quar quarter of a century into which we were tion in the debt must come from current ter of the total-cost $686,250,000 and inevitably drawn against our will has surpluses. Likewise further current defi gasoline for luxury use cost $1,323,- convinced the American people that we cits will result in debt increases. 000,000. Amusements last year cost cannot isolate ourselve& from the strife It is estimated that $75,000,000,000 of $2,171,335,969 and the purchase of furs of the rest of the world. We are, there the outstanding interest-bearing securi for American ·women amoun~ed to an fore, accepting our responsibility and ties are owned by commercial banks; $23,- expenditure of $917,061,705. Luggage assuming our rightful position of world 500,000,000 by Federal Reserve banks; bought last year cost $407,117,132; toilet leadership in an effort to promote inter $11,500,000,000 by mutual savings banks; goods cost $477,872,426 and cosmetics, national cooperation and durable peace . and $25,000,000,000 by insurance com $862,000,000. People of the United States among the nations. U, however, we are panies, making a total of $135,000, spent $1,830,287,495 for horse racing, to maintain our influence abroad, we ooo;ooo, which constitutes more than 50 and $7,770;000,000 for liquor. It is re must remain strong and virile at home, percent of the assets of those institutions. vealing that our J.iquor bill parallels the which means that we must not only After World War ·I, Federal securities amount we spent on veterans, who paid maintain our military strength, but that depreciated in value to such an extent the highest price any man ever paid for we must remain strong economically and that at one time $100 bonds sold on the liberty. fiscally as well. Any evidence of weak market as low as $80. If we were to Certainly the greater part of the sev ness on our part, particularly at the suffer a similar experience after World enteen-odd billion dollars spent on lux present time, would deprive us of our War n the solvency of every bank and ury items was not spent by the low-in position of leadership and would have insurance company in the United States come groups. People with less than tremendous repercussions abroad which would be seriously jeopardized. We can $3,000 a year are having a most difficult might easily lead to world chaos. not permit this to happen. To prevent time securing the very essentials of life. Moreover, our domestic prosperity and it, we must maintain the faith of the How constructive and how pleasant it tranquillity are contingent upon our eco American people in the fiscal stability would be if the majority party would nomic and fiscal stability. No nation of their Government, and this can be join with us to bring a measure of relief can long remain strong without a sound accomplished only by adopting sound and security to these millions, who, un fiscal condition which cannot be pre fiscal policies. der this bill, are certainly not receiving served under a policy of continuous Our present ·fiscal condition, therefore, that relief. deficit financing. . demands that the budget be balanced for For example, a married man making In fact, if democratic government is the fiscal year 1948, and that a definite $2,500 a year would get a reduction to survive it must be able to properly program of substantial debt retirement amounting to about 50 cents a week. A finance itself. Elected representatives be initiated immediately. Unless some manied man with no dependents, earn are usually so anxious to satisfy the progress is made toward debt reduction ing $1,200 a year, would get relief of wishes of their constituents for increased during the period of prosperity and in about 25 cents a week, or $11.40 a year. governmental seryice and at the same flation through which we are now pass On the other hand, a man making $9,000 time so reluctant to adopt the measures ing, we will inevitably face disaster in the would get a reduction of $372.40. Mar necessary to properly finance such serv lean years which are certain to follow. ried people paying taxes on less than ices, that there ·is a growing tendency Neither of these objectives can be at $4,000 would actually and potentially be toward deficit financing as the course of tained if we undertake to reduce taxes at losing money by this bill. For instance, least resistance. This tendency is be. this time. The President's budget esti a married man with two children, paying coming a serious threat to the form of mated the receipts for the fiscal year 1943 t2xes on $3,500, will save $57 per year government that we cherish. at $37,700,000,000 and expenditures at under this bill. At the same time, he The Federal budget has not been bal- $37,500,000,000 which would provide a is saving ~ 57, his family will incur a po anced for 16 years, and the Federal debt surplus at the end of the year of only tential debt of interest on the national has pyramided by leaps and bounds dur $200,000,000. The receipts did not in debt amounting to $140, which means ing that period. In 1917, just prior to clude the $1,130,000,000 of revenue which 2760 CONGRESSIONAL RECORD-HOUSE MARCH 27 will result from continuation of war ex influence abroad. Any other course at I am happy to have the opportunity cise taxes as recommended by the Presi the present time is fraught with grave afforded me in supporting this bill to dent and enacted by the Congress. The danger. reduce the taxes of our people. addition of these receipts will, therefore, Mr. REED of New York. Mr. Chair:.. Mr. REED of New York. Mr. Chair provide a surplus of $1 ,330,000,000. man, Andrew Mellon, Secretary of the man, I yield suc-q time as he may desire There has been endless talk by the Re Treasury, had this to say in his Treasury to the gentleman from Illinois [Mr. publicans of cutting the expenditures Annual Report of 1925_: CHURCH]. proposed by the President but the legis While taking the people as a whole it is Mr. CHURCH. Mr. Chairman, it i ~ lative budget is resting quietly. in the immaterial when the debt is paid, still, as not my purpose to discuss the details of conference committee where it was re between different classes of people, the in vesting class holding the bonds and the pro the bill before us, providing for a reducr. ferred nearly a month ago because the tion of the individual income taxes of Republicans cannot agree among them ducing class from whom a larger part of our taxes are collected, inequality may exist. our people. The details have been ably selves as to the size of this cut. We should not tax too heavily the producers presented by the members of the Com In the meantime, two appropriation to pay the security holders. It is for this mittee on Ways and Means which re bills have passed the House. The appro reason that we have sought a balance between ported the bill. I take this time to ex priations carried in these two bills debt reduction and tax reduction. press, in behalf of the people I am privi totalect $15,000,000,000, which represents leged to represent, my full support of 40 percent of the entire budget. After We come now to the other principal factor this legislation and to make a few gen careful scrutiny by able subcommittees in debt reduction, that of surplus, which has eral observations concerning it. I par manned by the most vigorous Republican accounted to date for over one-third of the reduction in our debt. It is proposed to ex ticularly desire to comment on the argu axmen these appropriations were ac ments that have been advanced by our tually cut approximately $125,000,000, or haust this surplus by reducing taxes. This is sound policy. A surplus of Government Democ-ratic friends on the other side of less than 1 percent. This percentage ap receipts over expenditures should be dis the aisle in. their vigorous opposition to plied to the entire budget will result in a tributed just as the profits of any other mu this bill. total reduction of less than $325,000,000. tual organization are di~tributed, among its The report filed by the minority mem Of the remaining $22,500,000,000 of the members-the taxpayers-through a reduc budget yet to be acted on $11,250,000,000 tion in their forced contributions to the bers of the Ways and Means Committee, is appropriated for nation::rl defense and State. recommending recommitment of the bill to the committee, contains some rather $7,343,000,000 for veterans' services and Mr. REED of New York. Mr. Chair benefits-. Unless, therefore, these items startling statements in the light· of man, I yield' such time as he may desire record. In m-y opinion, the report is are greatly reduced the prated Republl to the gentleman from West Virginia can economies will become as mythical nothing more than a political document, [Mr. ELLIS]. in which the minority advocate princi as their campaign promises. Mr. ELLIS. Mr. Chairman, this bill Not only is it becoming more apparent ples which they in fact never support. has been discussed 2 daYs by the best Deeds, not words, is the test, and I do day by day that there will be no drastic informed men in the Congress on the sub cuts .in the expenditures recommended not think the people will be deceived by ject of taxation. the rhetoric when the minority's voting by the President, but we must recognize .There is no mystery about its provi that the international situation may re record speaks so loudly. sions; there is no doubt about its im In opposing this bill the minority have quire increased expenditures in support port_. Consequently, my chief purpose of our foreign program. Already an ap placed great stress· on the relation~hip in making this brief statement is to lend between expenditures and revenue. propriation of $400,000,000 has been my unqualified and enthusiastic endorse recommended for Greece and Turkey, They say, and quite correctly, that in ment to the tax-reduction measure and order to have a reduction in taxes there I dare say there is not a single person to let the people in my district know that in this House who does not fear that must be a reduction in Government ex I am in complete accord with the leader penditures. They say, and I quote from this is the beginning rather than the end ship of my party in its determination to of such expenditures; We are living in their report: reduce taxes; reduce the budget; termi The minority shares the conviction that critical times in which the exigencies of nate waste and useless spending in Gov the occasion shape pur policies rather every possible economy must be made in ernment, and make a substantial pay Federal expenditures. than the dictates of our own desires. -ment on the national debt. This is the Mr. Chairman, I shall not discuss the first step on the road to the accomplish The fact is, Mr. Chairman, that the provisions of this particular bill. Its de ment of our objective. gentlemen on the other side of the aisle fects have already been forcibly disclosed This is a good bill and it will be a re have consistently opposed every effort we on the :floor of this House freshing experience for the hard-pressed. have made for reducing Government ex The gentleman from Tennessee [Mr. taxpayers of this Nation to observe that penditures. When. we had before this GoRE], pointed out that' this bill will common sense and stability are again, in House from the Joint Committee on the switch the burden for paying the war a large measure, dominating the con Legislative Budget, on which I have the debt from the high bracket to the low sideration of fiscal problems by the Con honor to serve, the resolution to fix the bracket taxpayers. May I remind you gress. ceiling on expenditures at $31.5 billion, that most of the veterans of World War One of the basic principles woven by representing a reduction of $6,000,000,- II are in the lower brackets. So that our forefathers into our form of gov 000 in the President's recommended bud the effect will be to shift the burden of ernment is the sacredness of private get, the minority argued that we should the payment of war debt to those who property. delay fixing any ceiling and, failing in won the war. The growth of the tax burden on our that, they argued that the reduction May I say in closing that I favor are people has reached the punitive and con should be at the very most not more than duction of taxes at the earliest moment fiscatory stage. The over-all annual $4,000,000,000. conditions will permit. The war has left tax burden of the country-Federal, We have had three appropriation bills us with tax and other burdens which are State, and local governments-has grown before this House: the Urgent Deficien oppressive to our people, but our present from $10,500,000,000 in 1933 to the stag cies bill, the Treasury and Post Office fiscal situation demands that we defer gering sum of $105,000,000,000 in 1945. Departments bill, and the Labor Depart all tax reductions until the budget has This record is shocking and indefen ment-Federal Security Agency bill. In been balanced and a definite program of sible. The people demand tax relief and each of these bills the Committee on Ap reasonable debt retirement has been they are going to get it. This is the first propriations, on which I serve, made sub adopted. Thereafter we can apply sur step. We lighten the burden by approx stantial reductions in the budgets. And pluses over and above the debt require imately $4,000,000,000 and as far as the the House supported our committee. ments to tax reductions with a clear majority party is concerned, taxes are But, as the record clearly shows, both conscience and with the knowledge that going to be reduced again. again, and in committee and on this fiodr, the gen we are following sound fiscal policies. again until the opposition is sick and tlemen on the other side of the aisle Such a course· will strengthen the faith tired of the battle and surrenders to the opposed practically every proposed·_ ap_,_ of our people in the stability of our Gov ideals of sanity and intelligent direction propriation reduction. They offered P.rnment and promote our prestige and in Government. amendment after amendment, and de- 1947 CONGRESSIONAL RECORD-HOUSE 2761 livered speech after speech, in an effort beyond the individuals immediately con Democratic tax-reduction program of to restore our reductions. cerned and involve the incomes and well 1945 with that which the Knutson bill The minority may say in their report being of people generally. of 1947 would afford would be helpful Every citizen has a vital stake in the wel that they share the conviction that every fru-e of the economy in which he lives and illuminating, to say the least. · possible economy must be made; but, Mr. works. Regardless of what he does or what So I asked the one who is, in my opin Chairman, I have yet to see that con his own income may be, he will be better ion, the greatest living tax expert, Mr. viction expressed in votes, in committee off with respect to both cash income and real Colon F. Starn, chief of staff of the Joint or on this ftoor, for realizing economy. income in proportion as there is vigor and - Congressional Committee on Internal The record speaks for itself. It loudly growth throughout the economic system. The Revenue Taxation, to apportion the tax proclaims that the gentlemen on the essential condition of this vigor and growth relief, as afforded by the Democratic tax is a reduction of the tax load, not merely other side of the aisle believe in the for small incomes, but for all incomes. reduction act of 1945, among the _tax doctrine of spending and taxing. They payers as they fall within the classifica- have opposed economy and today they Mr. Chairman, it is difficult to tTans . tions set up by the Knutson bill and to are opposing reducing · taxes. They late into tax rates the principle of "taxa fix the percentages of the total relief created this great public debt and they tion accordin~ to the ability to pa:yH; but, granted to each group. created this existing· tax burden. Spend insofar as it is possible to do so, I be The result of these calculations was and spend; tax and tax, is their true lieve \Ve should adhere to that principle. impressive, very much so in the light of philosophy. I believe in progressive taxation. But the somewhat explosive protests of the The second argument advanced by the that pi'Ogression can be such that it ~om gentlemen of Michigan [Mr. DINGELL minority in opposition to this bill is that pletely destroys individual initiative and and Mr. ENGEL] and the gentleman from no tax reduction should be made until a incentive. The rates can be so severe, Tennessee I.Mr. GORE] against. the pend comprehensive study of the entire Fed as they are today, that· one is not willing ing bill. eral tax system has been made, and they to make that extra effort and to assume Under the Democratic Tax Reduction emphasize the ''important structural, that ~xtra risk :which contribute to our Act · of 1945, those within the $1,395 administrative, and procedural tax prob national growth and well-being. _It is bracket, were given 27.2 percent of the lems" that have accumulated: As to the my conviction that with the reduction total relief granted by the act. Under need of a general overhauling of our en in the rates as proposed in this bill, peo the Knutson bill, taxpayers within this tire tax structure, I am in complete ple will again be willing to risk invest classification will get 33.6 percent of all agreement. On any number of occasions ing in new ventures and willing to of the relief which H. R. 1 will afford. since I have been a Member of Congress, exert new efforts, and our whole national Under the Democratic Tax Reduction I have contended that there shouid be a economy will move forward. It is when Act of 1945, the taxpayers Within the general revision of our taxes. It seems our economy expands that our people as middle bracket, that is, those with net to me rather strange that our Demo a whole have employment and better taxable incomes of from $1,395 to $302,- cratic friends, who have had complete wages in terms of purchasing power. 000, got 72.4 percent of the total tax control of this Government for 14 years For the past several years, our country reduction granted. Under the Knutson and who have had a majority in Con has been in the hands of those who be bill, the taxpayer will get but 65.2 of the gress for 16 years, should now come for lieve that America really has no future. total relief which H. R. 1 will afford. ward with the argument for the need for They could see no new frontiers to be Under the Democratic tax -reduction a revision in our entire tax structure. conquered and they have kept us in a program of 1945, the taxpayers of the Mr. Chairman, it is what we would char static condition. On this side of the aisle top bracket, those who have net taxable acterize in the law as a "dilatory plea.'' we believe that America has a great fu incomes of more than $302,000, were How else can one characterize it, when ture, that there are new frontiers to be given four-tenths of 1 percent of the those who make the plea have· had at conquered, and by such legislation as this total relief granted, but six-tenths of 1 least 14 years to do the very tbing they we propose to attain an economy of percent less ·than the Knutson bill will now plead we should do before we do abundance. We propose to revive the grant to these more fortunate individuals. anything else. American spirit of free competitive But where does this comparison leave Mr. Chairman, the bill before us pro enterprise. the distinguished· members of the firm vides for a flat 20-percent reduction for Mr. Chairman, this bill should have the of DINGELL, ENGEL, and GoRE? Why do most income-tax brackets, with two ex support of everyone who .believes in the they protest so vigorously against the ceptions. A 30-percent reduction has importance of the individual in the Republican tax-reduction bill that deals been provided for individuals with sur American philosophy of government, as so much more considerately with the tax net income of $1,000 or less; and with opposed to the alien philosophy that dig- · group in the lowest bracket than did the respect to surtax net incomes over $302,- nifies the CJovernLnent rather than the Democratic Tax Reduction Act of 1945? 000 the reduction has been limited to individual. This bill is a return to the And why were they so silent when the 10% percent. This means that the com ,American principle that each man is en then Democratic majority was dealing so mittee has accepted the graduated rate titled to a just share in the fruits of his niggardly with those who were on the schedule based on the principle of the labors. bottom rung of the tax ladder? ability to pay and has endeavored to Mr. REED of New York. Mr. Chair Just why is a Republican tax reduction. treat all taxpayers fairly. And, most man, I yield 5 minutes to the gentleman bill so bitterly excoriated when a Demo important, the committee proposes to from California [Mr. GEARHART]. cratic tax reduction· bill which is far less provide a reduction in taxes so as to stim Mr. GEARHART. Mr. Chairman, I considerate of the little fellows, escapes ulate venture capital and furnish incen did not intend to take the floor in sup even the mildest of criticism? And that tives. port of the bill under consideration, but seems to describe exactly what has hap- I should like to call your attention to after listening to the addresses of the pened. · the report of the Committee on Post gentlemen who have been lightly de-. Why did we not hear the golden voice war Tax Policy, under the chairmanship scribed as wmposing a mythical firm of of the gentleman from Tennessee [Mr. of Roswell Magill, published in February DINGELL, ENGEL, and GORE, I believe that GoRE] in an impassioned plea for the of this year, entitled "A Tax Program I should say something about another downtrodden taxpayers in this lowest for a Solvent America." At pages 80 tax-reduction bill that was before the bracket in 1945? Why was not the elo and 81 of this report you will find the House not so long ago as time is meas quent voice of the gentleman from Michi following, which, in effect, is an endorse ured. It was in the good old New Deal gan [Mr. DINGELL] raised for a better ment of the bill before us: year of 1945 that that measure was be break for those that compose this less One step which we believe can and should fore us. fortunate group? Where was the gen be taken now is a revision of the surtax Because of what the genial gentlemen tleman from Michigan [Mr. ENGEL] when rates. These rates still stand very close to who have been described collectively as the New Dealers of that day were doing the peak established under the stress of war DINGELL, ENGEL, and GORE had to say dirt to those over whom his tears are financing. Indeed, short of complete_ con about the gross inadequacy of the relief now falling? fiscation, they could not be much higher. We believe that they are so high as to pro granted by H. R. 1 to those in the lowest Mr. Chairman, is it possible that any vide .a powerful deterrent to our productive bracket, the ones whose net taxable in one could be playing politics with this effort. In fact, we are convinced that the come does not exceed $1,395, it occurred tax reduction measure, seeking to make effects of the kind of taxation which is now to me that a comparison of the relief political capital of a just and equitable imposed upon individual income extend far granted to this bottom group under the program? Certainly not these genial 2762 CONGRESSIONAL RECORD-HOUSE MARCH 27 gentlemen to whom we have affection marks by spreading upon the· pages of tired groups, such as retired school ately referred so many times under the the CONGESSIONAL RECORD the calculations teachers, policemen, municipal workers, euphonious designate of DINGELL, ENGEL, of the chief of staff of the Joint Com and others who have retired from private and GORE. mittee on Revenue Taxation to which I industry, have as their sole source of But all this notwithstanding, permit have so frequently referred. They are, · livelihood, the small amount which they me, Mr. Chairman, to conclude my re- in tabulated form, the following : receive as a pension, an~uity, or retire ment pay. H. R. 1 allows each taxpayer Their tax saving Percentage of total in this age group, an additional exemp Number under- reduction tion of $500, making a total personal Surtax net income class ~g:~f~~ ,______, ______exemption of $1,000. H. R. 1 1945 act H. R. 1 1945 act This bill, H. R. 1, is equitable and fair. - ·-'------·--:-·------·------The people want relief from high taxes Millions Millions Percent Percent and high living costs. This is not a po 3 $1,242 $1, 180 33.6 27.2 litical measure. Politics should be for 2, 411 3,150 6.5. 2 72. 4 ~i~302,000 J&5$f<> and~o2 ov.-ooo.·.~=====er_.------: ======:====------~k Mi: 567~~~ 43 20 1.2 .4 gotten and we should all vote for this ------bill and give to the people the aid and TotaL ....· ------. 46, 683, 799 3, 697 4, 350 100. 0 100. 0 relief which they so justly deserve. Mr. DOUGHTON. Mr. Chairman, I Mr. REED of New York. Mr. Chair again to a better day for America. It yield such time as he may desire to the man, I yield such time as he may desire will stimulate greater effort in the do gentleman from Louisiana [Mr. BRooKs]. to the gentleman from New York [Mr. mestic affail~ s of the Nation. This will · Mr. BROOKS. Mr. Chairman, I have BucK]. result in an increase of revenue, as many given a great .deal of care and study to Mr. BUCK. Mr. Chairman, during the precedents have shown. Australia, New the provisions of this bill. There are course of this debate everything appro York, and Iowa have reduced wartime numerous provisions-which I would-much priate to the bill h as already been said. taxes and received increased income. I prefer changing. Suggestions have been I therefore content myself with saying predict a similar result for the Federal made for more relief to the small tax that ·I shall support the bill enthusi Government, which will reduce the na payer than the provisions of the bill give. astically. tional debt. Other suggestions have been made for a Mr. REED of New York. Mr. Chair The fallacious theory that we can better handling of this problem. man, I yield such time as he may desire spend ourselves into prosperity has come This is, however, the only bill pre to 1he gentleman from Michigan [Mr. to an end. Tax slavery shall be abolished sented to us for vote. I believe the time DONDERO]. as human slavery was abolished. With has come for a reduction in taxes. The - Mr. DONDERO. Mr. Chairman, "The the passage of this measure, people will burden borne by · the American people power to tax is the power to destroy." no longer be able to say, "What is the during the war in carrying extremely The highest court in the land rendered use of working or trying to make money heavy taxes in time of peace becomes that decision during the early history of -while the_ tax collector takes the most truly oppressive. Some reduCtion should our country. Never before has the of it?" be ma,de, and tests to be applied in the truth of that statem-ent been more ap This legislation means a larger take reduction should be based on the ability parent than today. home pay envelope for the average wage to pay. Government is now reaching into the earner to support himself and his family: - I have repeatedly told my people at pockets of our people and taking out It does away with wartime taxes in home that tax reduction and debt reduc one-third of all they earn or make. Can peacetime. We move in the direction of tion should go hand in hand. It is im any government long endure under such strengthening our economic structure. perative that our debt be reduced in an a burden? Republicans told the pepple Without a solvent and strong America, orderly and businesslike manner. I hope in the last campaign that they would we cannot meet our obligations to those this Congress will take up this problem reduce taxes, ·the cost of Government, who fought the Nation's battles, nor can at an early date and will make suitable retire the national debt, and stop waste we maintain a position of world leader provisions for annual debt retirements. ful spending of public funds. The people ship at a time when freedom-loving na Without some t~x reduction, our people registered their faith in such promises. tions everywhere look to us for light in a may lapse into a cond.ition where they This bill, H. R. 1, proposes to carry out darkened world. will feel the burden is too much to carry that promise by reducing the income I shall keep faith with the people of in normal times. taxes of every taxpayer in the United my district, for whom I speak, by keeping Mr. DOUGHTON. Mr. Chairman, I States. It has my unqualified support. my pledge to reduce their tax burden by yield such time as he may desire to the Free enterprise has been dying in our voting for this bill. gentleman from Oklahoma [Mr. ALBERT]. country. Venture capital is vanishing· Mr. REED of New York. Mr. Chair Mr. ALBERT. Mr. Chairman, I am from the American plan of life. Incen man, I yield such time as he may desire opposed to H. R. 1 because it does not tive to work, save, and expand has been to the gentleman from Ohio [Mr. Mc give tax relief where relief is badly need killed by excessive taxation. To buy and GREGOR]. ed. In this age of rising and inflationary sell, barter and trade,- have been re Mr. McGREGOR. Mr. Chairman, I prices individuals in the lower-lncome strtcted and retarded by the ever-present am going to vote for H. R. 1, a bill t o brackets are finding it increasingly diffi threat of confiscatory taxes. reduce-taxes, because I think it gives aid cult to make ends meet. H. R. 1 does not This condition must be corrected, and to every man, women, and child in these furnish the solution. To the married the bill before us is intended to do that. United States. I think it is about time man making $100 per month the total re The workingman and all our people in we gave more consideration to our own lief will amount to only 22 cents a week. the lower-income brackets, including people. This bill, H. R. 1, will do two The taxpayer making $300,000 per year those who· earn or receive incomes up to things: will save about $47,000 in taxes. In my $3 ,300, are given the greatest relief. First. It will give income-tax relief for opinion, the simplest and surest way of That is as it should be. That ,relief un all individual taxpayers. granting relief where relief is sorely der this bill is a 30-percent reduction in Second. It will give an incentive t o needed is by increasing the personal ex their taxes. It will apply to 25,000,000 of venture capital and allow business ex emptions of individual taxpayers. our people who pay income taxes. All pansion which means more work and I am also opposed to H. R. 1 because it others generally will be benefited by a more income for all. will shift the burden of paying for the 20-percent reduction up to $300,000. This bill, Mr. Chairman, also gives spe war from the shoulders of those most Above that amount, 10 ¥2 -percent reduc cial recognition and exemptions to tax able to pay to those in the lower- and tion is allowed. payers who have attained the age of 65. middle-income brackets. The passage of this bill will revive hope I have been especially concerned about I further oppose this bill because I and encourage our people to go forward this group. Many of them, including re- think we should balance our budget and 1947 . CONGRESSIONAL RECORD_._HOUSE 2763 pay our national debt while our income The gentleman from North Carolina flciently familiar with details of administra is high. In 1946 our national income goes on to say that the committee failed tion and that there 1s not the measure of reached an all-time peak. This is no control over such matters as should obtain. to give any evidence of "the waste, the The committee shall expect this situation to time to cut taxes in the higher brackets. extravagance, and the grandiose be corrected in the near future and that it Mr. DOUGHTON. Mr. Chairman, I schemes., of the Coast Guard. I am will not again be confronted with testi yie!d such time as he may desire to the afraid he has not made a study of the mony which varies from the real situation. gentleman from Mississippi [Mr. WIL printed hearings, the report accompany I LIAMS]. ing the bill, and the speeches on the :floor. Mr. DOUGHTON. Mr. Chairman, yield such ti,me as he may require to the Mr. WILLIAMS. Mr. Chairman, I rise And certainly he minimizes the slashing gentleman from Texas [Ml·; WoRLEY]. in opposition to this bill-not so much of the guard's 1948 requests by the Treas from a standpoint of opposing the re ury and the Bureau of-the Budget. I will M1·. WORLEY. Mr. Chairman, I tak€: duction of taxes-but primarily because not take time to repeat all the evidence. this time for the purpose of keeping the this bill is a tool of the autocratic Repub Concrete examples were given the House record straight. The gentleman from lican Party which has never regarded the by the hard-working gentleman from New York [Mr: REED] has stated that the needs of the little man. If they must North Dakota [Mr. ROBERTSON) on page recommendations of the House Postwar reduce taxes, certainly first relief should 1878 of the CONGRESSIONAL RECORD; by the Committee on Economic Policy and be given to the poor devil who must scrape alert gentleman from Ohio [Mr. GRIF Planning advocated tax reduction. He the bottom of his dusty pockets in order FITHS] on pages 1883 and 1884 of the is correct in that statement but he in to pay the exorbitant prices for his corn RECORD; and my own statement which advertently left out the major recom bread, ·peas, and turnip greens which appears on page 1875. You will also find mendation of that committee, namely, have resulted from the application of Re on page Ui80 the statement by the dili that first, the budget should be balanced publican "economy." . There is no justice gent gentleman from Virginia [Mr. and a surplus created before any sub in this bill; it relieves none but those who GARY]: stantial tax reduction was made. need relief least; it does not relieve the · The facts are that the Coast Guard has E:X . As the gentleman from New York man who needs relief most, and is but a panded considerably during the war. The pointed out also, there were a number of smoke screen thrown up to protect wild, committee felt that the time has come when able and outstanding members on that promiscuous political promises made by we should begin to eliminate some of the committee, including the following warti~e activities. R~publicans in the North and East and members of the Republican Party: Mr. West in their desperate grab for power. I might also refer you to page 1884 of Cnailes-L. ·Gifford, of Massachusetts; B. If taxes must be reduced, the only fair the RECORD wherein the gentleman from Carroll Reece, of Tennessee, who is now way to do so would be by raising exemp Ohio [Mr. GRIFFITHS] called for a con chairman of tbe Republican National tions and not by any spurious across solidation oJ training programs. The Committee; Richard J. Welch, of Cali the board plan. gentleman from North Carolina [Mr. fornia; Charles A. Wolverton, of. New Mr. REED of Ne\V York. Mr. Chair BoNNER] arose to say, "I agree with the Jersey; Cilliord R. llope, of ;Kansas; man, I yield such time as- he may desire gentleman." That· there was waste, ex Jesse P. Wolcott, of Michigan; Jay L~ to the gentleman from New Jersey [Mr. travagance, and overexpansion is amply Fevre, of New York, and Sid Simpson of CANFIELD) .. borne out by the testimony on pages 570 Illinois. ' Mr. CANFIELD. Mr. Chairman, I ' do through 731 of the printed hearings. As I recall, the vote on this report of not like to disagree with my good friend, I must take ·sharp exception to my col the committee was unanimous. and as a the able gentleman from North Carolina le~gue's statement that there is no evi matter of fact, I have never served on a lMr. BoNNER). Yet, I cannot permit to dence to show that when forced to re committee in which less politics or par remain unanswered the statements he duce. personnel the Coast ·Guard retains tisanship was present. We did not con made here Tuesday regarding the appro . admirals and dismisses enlisted · person sider any of these problems from the priation for the Coast Guard in the nel. One answer might be this, "Just standpoint of anything except what was Treasury-Post omce appropriation bill' ask· the enlisted personnel." I ask the for the best interests of this Nation's recently passed by the House unanimous House to review page 587 of the hearings. welfare. ly. I understand his anXiety for he has Please note also that after World War I, Refening further to the rePort, I quote long been a friend of the Guard even as. the percentage of omcers to men in fro!? page 66: · I have. · All of us salute this service on its creased. Captain Richmond proceeds to In its ninth report, issued March 4 1946 enviable- record, its contribution to vic tell us: the committee called attention to the' intla~ tory in war. All of us know it has a big In 1932, during the depression years, the tionary forces existing in the economy and peacetime job. officers were way out of line because, of stated that it was convinced that effective When the Treasury bill was before the course, we were forced to reduce drastically. control over these forces was impossible We did that by letting men out of the s~rvice. WithQut strong fiscal and monetary counter House I made the statement that- measures. Among the measures which it The Coast Guard is attempting to build it If my colleague still feels that those in stated should be adopted. were curtailment self up into a fUll and complete replacement charge of the Coast Guard have not been of Federal expenditures, balancing the for the independent Na.vy. · off the beam and that our committee budget in the fiscal year 1947, and in the has been unjust, let me ask him to read following year creating a surplus to be ap I repeat that statement today. My col plied t~ the retirement of the public deb.t. league takes exception to this. May I carefully the report that accompanied point out to him and the House that the the 1947 appropriation bill for the Coast Further along on the same page is the record speaks for itself. This year the Guard, a report submitted by the distin following excerpt: . · Coast Guard originally requested $232,- guished gentleman from Indiana [Mr. All those who have studied fiscal policies 000,000. Now, please listen. In 1935 the LUDLOW], whom none has ever· accused of the Fed.eral Government, however much of vilification or improprieties of any they differ on other views, agree that during total appropriations for the Navy De a period of high employment and income partment amounted to $284,658,000. The kind. The so.:-called Ludlow committee last there should be a surplus in Federal reve Navy Department appropriations for the nues to apply toward reduction of the debt. year, disturbed over the Coast Guard's It forebodes danger for the future if we years 1930 through 1935 averaged $335.- presentation, directed an investigator- to 000,000. Thus, it is established, the Coast cannot under these very favorable conditions go to the Guard's headquarters and make handle the fiscal affairs of the Government Guard this year asked for an amount a check-up. As a result the committee, in such a way that the budget can be bal equal to 70 percent of the Navy's aver in its report, had the following to say on anced . . The committee strongly urges that age appropriation for these prewar two phases-administration and the additional efforts be made to reduce expend years. And the Chief of the Coast Guat·d truth: itures during the remainder of the fiscal year Planning Section told our committee in so that the budget can be brought into bal The committee's study of this item leads ance and a surplus created. this year's hearings that 1943 would be a to the eonclusion that the olllces charged base year with increased appropriations with responsibility for over-all management The committee to.ok the same realistic requested in the years to come. of the headquarters organization are not suf- attitude of Government fiscal policy as 2764 CONGRESSIONA-L RECORD-HOUSE MARCH 27 an individual takes in managing his own receipts and there are others who say of that fear, and from now on we are financial matters, namely, that you can that your bill would reduce revenues by going to have prosperity; we are going never get out of debt unless you begin $5,700,000,000, I do not see how you are to have debt reduction and we are going paying and you cannot begin paying if going to sustain· the Government and to have tax reduction. I am sure that you do not have the money. Further on, pay anything on the public debt. these people are not so worried about. . this doctrine is more concisely stated on I think this is an untimely thing. I what is going to happen to our party as page 70 in the following excerpts: think the gentleman from Illinois [Mr. a result of this bill. They are not shed The committee still feels that under the MASON], stated the problem very clearly ding tears over that. It will not change present economic conditions the prime con when he asked two questions: one, is a vote for them to stand there and weep cern should be the balancing of the budget this the time to reduce taxes; and, two, over what may happen to the Repub and the creation of a surplus in order to re is this the way in which to reduce taxes? licans because they vote for this bill. duce inflationary forces. My answer to the first. question is that Mr. SHORT. Mr. Chairman, will the And the concluding quotation reads this is not the time. We do not have gentleman yield? as follows: · enough information. We do not know Mr. REED of New York. I yield to The issue should be faced squarely and what our ultimate commitments are go the gentleman from Missouri. realistically by the Eightieth Congress. If ing to be because nobody can tell what Mr. SHORT. We have always had a the budget cannot be· balanced now when the appropriations are going to amount 50-50 agreement with our Democratic the Nation is enjoying its highest peacetime to. We cannot even make a wild guess. friends about debts. They make them income, it is absurd to contend that it can be Of course, you can guess $6,000,000,000- and we pay them. balanced in an era of recession or depression. you can guess $4,000,000,000 or $3,000,- Mr. REED of New York. I thank the The . committee quite logically placed 000,000 or $2,000,000,000. But just a lit gentleman. the major emphasis on trimming Gov tle political advice to you. You would The CHAIRMAN. The gentleman has ernment spending, balancing the budget, have been in so much better shape be consumed 2 minutes. making substantial payments on our na fore the country about reducing expend Mr. REED of New York. Mr. Chair tional debt while we have the money, and itures if you had said you were going to. man, I yield the remainder of my time reducing taxes as soon as sound business cut to the bone and every dollar that to the gentleman from Indiana EMr. judgment and a strong fiscal policy will was possible. Then you might have re HALLECK]. permit. duced the President's budget by a billion The CHAIRMAN. The gentleman Mr. DOUGHTON. Mr. Chairman, I · and a half or two billion. 'l!'wo billion from Indiana is recognized for 15% yield the balance of the time remaining dollars is still a lot of money, even in the United States of America. You would minutes. to the gentleman from Texas [Mr. RAY Mr. HALLECK. Mr. Chairman, of BUR~]. have gotten credit for that. But now, since you have said you can reduce it course we always enjoy listening to the Mr. RAYBURN. Mr. Chairman, I gentleman from Texas, the very eminent have enjoye'd. this debate-and I have $6,000,000,000, and you reduce it only a billion and a half or two billion, you are minority leader [Mr. RAYBURNJ. I had heard r.1ost of it. The majority of it not thought that I would participate in has been on the bill, which I was glad going to have great disappointment in this country. The people who are spend this debate, because I think the views of to see. It has been a very informative those on our side have been pretty well debate. Yesterday I felt a little sorry for ing money for things to eat and wear are established by members of the committee my friends on my left and was glad interested in what their dollar is worth. and others who have debated this very when the time for debate was extended. They do not want a 59-cent dollar. They momentous proposition. HoweYer, in I said yesterday that, of course, our want a dollar that is worth a hundred view of some things that have been said, people could attend to this matter in 3 cents when it comes out of their pocket I feel constrained to respond. hours, but I thought that it would take and goes over the counter, or as near at least 5 hours for our Republican that as possible. So in order to have I am not so sure but that the gentle friends to even begin to justify the ac that sound economy that our friends on man from Texas really would prefer that tions that the Committee on Ways and the left have talked so much about and instead of going ahead with a tax reduc Means took and that the House in a are doing so little about now; in other tion now-a tax reduction that is needed, short while will take. words, instead. of making that dollar badly needed for the welfare of the coun I have always thought from way back sounder, in my .opinion, by your action try-he.would like to have us forego it so that the Republican Party at least said here today you are making it less sound, that sometime, possibly quite soon in the it stood for a 100-cent dollar, for sound because you are going to deplete the future, he and his people might say: We currency, for a balanced budget, and for money in the Treasury so much that you propose tax reductions. And thus un paying our debt when we had prospects cannot make a sounder dollar by paying dertake by that procedure to establish of having the money to do it. I have on our Federal obligations. I thought some credit in the country for them talked to a great many people, big and before this debate closed I would just call selves for having brought about a tax little-big incomes and little incomes these two or three little things, in all reduction. since the first of the year. I have yet sincerity, to your attention. I have been a little amused at the diffi to find one who did not tell me he Mr. REED of New York. Mr. Chair culties of some of the folks on the other thought the most vital thing in the Gov man, at this point I wish to say that side of the aisle. They do not know ernment was to protect the value of our the party on the other side gave us the whether to be for tax reduction or against dollar and pay something on our debt 59-cent dollars. They gave us the na tax reduction. It is quite evident and I while we had the means of paying. That tional debt. They gave us the infla think it ought to be understood in the may not be the situation 3 or 4 or 5 years tionary measures. They gave us the country, that fundamentally and pri from now-who knows? spending program. It is rather unusual marily they are against tax reduction. Someone spoke about risk capital. In to see them take the floor now and shed True, they may say that they are for these times is there any impeding of risk tears about the future of this Republic. tax reduction but we should not have it capital when capital is being used to such The Republican Party never sought to now, which really is to say they are not an extent that everybody in the United overthrow this Republic. It did have to for tax reduction at all. I think it has States who wants to work is employed? spend a great many lives to save this Re been quite definitely established tha.t The thing that is going to bother capital public. This party does not believe in now is the time for tax reduction. and anyone who has a dollar in the years the question of slavery. It never did. Some of you have contended that more to come is what that dollar is worth We are not going to make tax slaves out of the tax reduction should go to the so when he goes to the store to buy some of the people. We are going to lift this called little fellow. But in your pro thing. We must, in my opinion, we must load and we are going to do what we fessed solicitude for the little fellow, let pay as much as possible upon our na have done before. We are going to re me remind you that you have to have tional dett in this most prosperous time lieve this country from the peril which some tax reduction before you can help that we have ever known. I say if you the other party has brought upon the anybody. If you are not for any tax take $3,800,000.000 frorh the Treasury country. We are going to relieve people reduction at all, whicb you have indi- ,, 1947 CONGRESSIONA-L RECORD-HOUSE 2765 cated to be your position, certainly you Why, for any one to contend that this tle fellow, or anybody else, you just go are not for helping the little fellow. country can go on with this schedule of ahead and vote that way and try to ex The proposal before us today recog wartime tax rates and at the same time plain it. I think we know what we are nizes the problems of the low-income provide a highly effective functioning doing. I know that we know what we are groups by the added benefit that is given peacetime economy to my mind fail to doing. I think if the truth were known that group. There is this additional fac recognize the very essentials of our whole a lot of you gentlemen on the other side tor in this whole proposition which you economy. of the aisle-and you are all my good ignore: The man who works for a salary Mr. Chairman, we voted for a reduc friends; it is a pleasure to cooperate with wants and needs some tax reduction to tion of $6,000,000,000 in the President's you and to listen to what you have to help him, but beyond that he needs to budget. The other body voted for a re say-but I think, if the truth were known have a job to realize income out of which duction of $4,500,000,000. I have seen it and down deep in your hearts you could he can pay taxes. He must first have a suggested that the minimum figure be resolve this question the way you would job at good wages. And it is only a ing considered in the conference is $5,- like to, you would take this tax bill and strong, functioning, productive economy 250,000,000 as a reduction. In addition vote for it. But because it is brought out that will give him the sort of job at good to that, it has been pointed out that here by the Republican Party you are pay out of which he can and will gladly the estimate of revenues is too low having a little trouble following that pay taxes. and there is every indication that the course. But you may live long enough to Reference has been made to the ques revenues will be over the estimate. Cer see the error of your ways, and when you tion of the value of the dollar. We, of tainly that clearly points to the truth repent come around and tell us about course, stand for a sound dollar. As the of the assertion that this tax relief so it, and we will be glad to listen to you. gentleman from New York pointed out, badly needed, so sorely needed by all of The CHAIRMAN. The time of the among other things that have happened our people, can be accomplished to the gentleman from Indiana has expired. the reduction in the value of the dollar end that we do maintain a strong, effec All time has expired. Under the rule, cannot be laid at our door. That will be tive, productive economy and, at the same the bill is considered as read. The Clerk laid at the door of you people on the time, begin paying off on the national will report the committee amendment. other side of the aisle. However, that debt. That is the way, I may say to the The Clerk read as follows: is water over the dam. gentleman from Texas, that we will main Be it enacted, etc., That this act may be What are we now facing,? We face a tain the value of the dollar, and it is cited as the "Individual Income Tax Reduc situation under' which I think we must the only way I know of to maintain the tion Act of 1947." all recognize that the value of the dollar value of the dollar. SEc. 2. Reduction in Normal Tax and Surtax can be maintained only by the mainte So, Mr. Chairman, we are going to on Individuals. nance of a strong, functioning, produc- · pass this bill. I know that it does not (a) Reduction in normal tax on indi tive economy. Certainly tax relief is now suit the PAC and some of the folks who viduals: Section 11 of the Internal Revenue necessary if such a functioning economy stand with the PAC; but, you know, they Code (relating to the normal tax on indi is to be maintained in the country. 1 are not writing this tax bill. viduals) is'hereby amended by striking out Some argue that debt reduction should Some solicitude has been expressed on "5 percent" and inserting in lieu thereof precede tax reduction. In keeping with the Democratic side for the political con "24 percent," and by adding at the end of · such section a new sentence to read as fol our program to give new life and vigor sequences to us Republicans by our pas lows: "If aggregate of tentative normal tax to our economy, we are going to have sage of this legislation. Possibly I am a ·and tentative surtax is n\)t more than $279.17, tax reduction and we are also going to 1 little old-fashioned, but I have always see section 12 (i), and if more than $.250,000, have debt reduction. But let us pur thought that the best politics is to do see section 12 (g)." sue the argument of those who say that right. That is what we are doing here (b) Reduction in surtax on .individuals: debt reduction is the only thing to be and history will prove it. Sometimes we Section 12 (b) of the Internai Revenue Code achieved, and the suggestion of the gen have got to look out a little for this very (relating to the rate of surtax on· individuals) tleman from Texas that everything that fine advice that is'offered us. I have said is hereby amended by striking out "5 per might be saveq. should: be applied on the for a long time that ·if I believed some cent" and inserting in lieu thereof "24 per debt, that we ought to tax and tax to thing were right, that something was in cent." get more money to apply on the debt. the national interest, I would support it (c) Tentative tax more than $250,000: 1 Section 12 (g) of the Internal Revenue Code If you followed that theory to the end, without regard to its political effect upon (relating to tax on large incomes) is hereby then you would raise tax rates to take my party or the political future of my amended to read as follows: more out of the economy to pay on the party. I have sought in my time in the "(g) Tentative tax more than $250,000: If debt. That could be pursued to the Congress to follow that precept. I am the aggregate of the tentative normal tax point where we would be killing the following it today. And I have no fear, under section 11 and the tentative surtax goose that lays the golden egg, That because I think that on this as on many under subsection (b) of this section is more suggestion, of course, has not been made other occasions it will be established that than $250,000, the combined normal tax and we are right. surtax shall not be less than such aggregate now, but if these tax rates are too high, reduced by the sum of (1) 24 percent of the as they now are, then we are in the Mr. Chairman, I can discern in this first $250,000 thereof plus (2) 15 percent of process of stymieing and hamstringing solicitude shown on the other side of the the amount thereof in excess of $250,000, but our economy. Our economy would be aisle for our political chances some sort in no event shall the combined normal ta't. doomed to a-static condition. Certainly of an indication that what you are really and surtax exceed 76~ percent of the net that is not the way, in the long run, to afraid of is that we are doing the right income of the taxpayer for the taxable year. pay the debt. thing, that we are going to cut the cost In the application of this subsection, the Let me point this out to those of you of Government, that we are going to re combined normal tax and surtax shall be who contend these rates should be main spond in that way to the heart's desire of computed without regard to the credits pro the American people, that we are going vided in sections 31, 32, and 35." tained as they are now: We have changed (d) Tentative tax not more than $279.17: from a wartime economy to a peacetime to give them a tax reduction they so Section 12 of the Internal Revenue Code is economy. If these rates are not too high badly need, that we are going to start hereby amended by adding at the end thereof today in a peacetime economy, then you paying off the debt in order to maintain a new subsection to read as follows: did not have them high enough in the the value of the dollar; and that out of "(i) Tentative tax not more than $279.17: wartime economy. During the war bil it all will come a happier, a more pros "(1) If the aggregate of the tentative nor lions and billions of borrowed dollars perous America, and that we will get the mal tax under section 11 and the tentative were being pumped into our econo~ic credit for it. surtax under subsection (b) of this section bloodstream. It was our responsibility You have sought to dissuade us from a is not more than $200, the combined normal right and correct course, and that you tax and surtax shall not be greater than such and your responsibility as the majority aggregate reduced by 33 Y2 percent thereof. will party to take the maximum out of the have not been able to do so soon be "(2) If the aggregate of the tentative nor revenues and income of the country in quite apparent. mal tax under section 11 and the tentative order that we come as closely as possible Now, if you want to vote against this surtax under subsection (b) ·of this section to a position of pay-as-you-go in the bill, if you want to take the position that is more than $200 but not more than $279.17, war. you are not for tax reduction for the lit- the combined normal tax and surtax shall 2766 CONGRESSIONAL RECORD-HOUSE MARCH 27 not be greater than such aggregate reduced (e) Taxable years to which applicable: SEc. 3. Individuals With Adjusted Gross In by $67. The amendments made by this section shall comes of Less Than $5,000. "(3) In the application of this subsection, be applicable to taxable years beginning after (a) In general: The tax table in section the combined normal tax and a surtax shall December 31, 1946. For treatment of taxable 400 of the Internal Revenue Code (relating be computed without regard to the credits to optional tax on individuals with adjusted years beginning in 1946 and ending in 1947, gross incomes of less than $5,000) is hereby provided in sections 31, 32, and 35." see section 6. amended to read as follows; "Individuals with adjusted gross income of less than $5,000- If adjusted gross And the number of exemptions is- If adjusted gross income is- income is- And the number of exemptions is- 1 2 3 I 1 -more5or 1 2 3 4 5 .6 7 8 9 or But less more At least At least But less than I I I than I I I I I I I I The tax shall be------The tax shall be- $0 ~550 $0 $0 $0 $0 $0 $2,275 $2,300 $237 $145 $74 $8 $0 $0 $0 $0 $0 550 575 1 0 0 0 0 2, 300 2,325 240 149 77 11 575 600 4 0 0 0 0 0 0 0 0 0 2,325 2,350 244 154 80 14 0 600 625 7 0 0 0 0 0 0 0 0 2, 350 2,375 247 158 83 17 0 0 0 625 650 10 0 0 0 0 2, 375 0 0 2,400 251 163 86 20 0 0 0 0 0 650 675 13 0 0 0 0 2,400 2,425 254 167 89 23 675 700 16 # Q 0 0 0 0 0 0 0 0 2,425 2,450 257 172 92 26 0 0 700 725 19 0 0 0 0 0 0 0 2,450 2,475 261 176 95 29 0 0 0 725 750 22 0 0 0 0 2,475 0 0 2,500 264 181 98 32 0 0 0 0 0 750 775 25 0 0 0 0 2;500 2, 525 268 185 10L 35 775 800 28 0 0 0 .. p 0 0 0 0 0 2, 525 2, 550 271 190 104 . 38 0 0 800 825 31 0 0 0 0 0 0 0 2, 550 2,575 275 194 107 41 0 0 0 825 850 34. 0 0 0 0 0 0 2, 575 2,600" 278 199 110 44 · o 0 0 0 850 875 37 0 0 0 0 2,600 2, 625 0 281 203 113 47 0 0 0 0 0 875 900 40 0 0 0 0 2, 625 2,650 285 208 116 50 900 925 43 0 0 0 0 0 0 0 0 0 2,650 2,675 288 212 119 53 0 925 950 46 0 0 0 0 0 0 0 0 2,675 2, 700 292 216 122 56 0 0 950 975 49 0 0 0 0 2, 700 2, 725 · o 0 0 295 219 125 59 0 0 0 0 0 975 1,000 52 0 0 0 0 2, 725 2, 750 298 222 128 62 . 0 . 1, 000 1, 025 55 0 0 0 0· 0 0 0 0 2, 750 2, 775 302 " 226 131 65 0 0 1,025 1, 050 . 58 0 0 0 0 0 0 0 2, 775 2,800 305 229 135 68 . 0 .0 1,050 1,075 61 0 0 0 0 2,800 0 0 2,825 309 233 139. 71 -1 0 0 0 1,075 1,100 64 0 0 0 0 2,825 2, 850 0 313 236 144 74 7 0 0 0 0 1,100 1, 125 67 0 0 0 0 2,850 2,875 317 240 148 1,125 1,150 70 77 10 0 0 0 0 3 , 0 0 0 2,875 2,900 321 243 153 80 13 1,150 1,175 73 6 0 0 0 0 0 0 0 2, 900 2, 925 324 246 157 83 16 0 1, 175 1, 200 76 9 0 0 0 0 0 0 2, 925 2,950 328 250 162 86 19 0 0 1, 200 1, 225 79 12 0 0 0 2, 950 0 0 2,975 332 253 166 89 22 0 0 0 1, 225 1, 250 82 15 (j 0 0 2, 975 3,000 0 331> 257 171 92 25 . Q 0 0 0 1, 250 1, 275 85 18 0 0 0 3,000 3, 050 341 262 178 1,275 1, 300 96 30 0 0 0 0 88 21 0 0 0 3, 050 3,100 349 269 187 102 1, 300 1,325 91 24 36 0 0 0 0 0 . 0 0 3,100 3,150 356 276 . 196 108 42 1, 325 1, 350 94 27 0 0 0 0 0 0 0 3,150 3,200 364 282 205 114 48 0 0 -o 1, 350 . 1, 375 97 30 0 0 0 3,200 3, 250 371 0 289 213 120 54 0 0 0 0 1, 375 1,400 100 33 0 0 0 3,250 3, 300 379 296 220 126 1, 400 1,425 103 36 60 0 0 0 0 0 0 0 3, 300 3, 350 386 303 227 132 66 1,426 1,450 106 39 0 0 0 0 0 0 0 3, 350 3,400 394 310 234 141 71 5 1,450 1, 475 109 42 0 0 0 0 0 0 3,400 3,450 401 318 241 150 77 . 11 0 1,475 1, 500 112 45 0 0 0 3,450 0 0 3, 500 409 325 247 159 83 17 0 1, 500 1, 525 115 48 .o 0 0 3, 500 3,550 0 · 0 416 333 254 168 89 23 0 0 1, 525 1, 550 118 51 0 0 0 3, 550 3,600 424 0 340 261 177 95 29 0 0 0 1, 550 1, 575 .121 54 0 0 0 3, 600 3, 650 431 348 268 1, 575 1, 600 186 101 35 0 0 0 124 57 0 0 0 3,650 3, 700 439 355 275 195 - 41 1, 600 1, 625 127 60 0 107 ·0 0 0 0 0 3,700 3, 750 447 363 282 204 113 47 1,625 1, 650 130 63 0 0 0 0 0 0 3, 750 3,800 454 370 288 212 119 53 0 1, 650 1, 675 133 66 0 0 0 3, 800 0 0 3, 850 462 378 295 219 125 59 0 1, 675 1, 700 137 69 2 0 0 3, 850 3, 900 0 0 469 386 302 226 131 65 0 0 1, 700 1, 725 141 72 5 0 0 3, 900 3, 950 477 0 393 309 233 140 71 4 0 0 1, 725 1, 750 146 75 8 0 0 a, 950 4,000 484 401 317 1, 750 1, 775 240 149 77 10 0 0 150 78 11 0 0 4,000 4, 050 492 408 324 247 1, 775 1,800 155 81 14 158 83 16 0 0 0 0 4,050 4,100 499 416 332 253 i67 1, 800 1,825 159 84 17 0 89 22 0 0 0 4,100 4,150 507 423 340 260 176 95 1, 825 1, 850 164 87 20 0 0 4,150 4, 200 28 0 0 514 431 347 267 185 101 34 0 1, 850 1, 875 168 90 23 0 0 4,200 4, 250 522 438 0 1, 875 355 274 194 107 40 0 0 1, 900 173 93 26 0 0 4, 250 4, 300 529 446 362 1, 900 1, 925 . 96 281 203 113 46 0 0 177 29 0 0 4,300 4,350 537 453 370 288 1, 925 1, 950 182 99 32 212 119 52 0 0 0 0 4,350 4,400 544 461 377 295 219 1, 950 1, 975 186 102 35 0 125 58 0 0 0 4,400 4,450 552 468 385 301 225 131 1, 975 2,000 191 105 38 0 0 4, 450 64 0 0 4,500 559 476 392 309 232 139 70 2,000 2, 025 195 108 41 0 0 4,500 4, 550 4 0 567 483 400 316 239 148 76 10 2, 025 2, 050 200 111 44 0 0 4, 550 4,600 574 491 0 2, 050 2,075 407 324 246 157 82 16 0 204 114 47 0 0 4, 600 4, 650 582 498 415 331 2,075 2,100 209 117 50 253 166 88 ' 22 0 0 0 4, 650 4,700 589 . 506 422 339 260 175 2,100 2,125 213 120 53 0 0 4, 700 94 28 0 4, 750 597 513 430 346 266 184 100 2,125 2,150 216 123 56 0 0 4, 750 4,800 34 0 605 521 437 354 273 193 106 40 2, 150 2, 175 220 126 59 0 0 4,800 4,850 612 528 0 445 361 280 202 112 46 0 2, 175 2, 200 223 129 62 0 0 4,850 4, 900 620 536 452 2, 200 2, 225 369 287 2fl 118 52 0 227 132 65 0 0 4, 900 4, 950 627 544 460 2, 225 2, 250 230 136 376 294 218 124 58 0 68 2 .0 4,950 5,000 635 51ll 467 384 2, 250 2, 275 234 140 71 5 301 225 130 64 0" 0 ------1947 CONGRESSIONAL RECORD-HOUSE 2767 (b) Taxable years to which applicable: The " ( 1) to amounts excluded from gross in ""(a) Requirement of withholding: Every amendment made by this section shall be ap come under section 22 (b) (5); except that employer making payment of wages shall de plicable with respect to t axable years begin this subsection shall apply to amounts re duct and withhold upon such wages a tax ning after December 31, 1946. For treatment ceived as a pension, annuity, or similar al equal to the sum of the following: of t axable years beginning in 1946 and ending lowance for personal injuries or sickness re " (1) 12 percent of whichever of the fol 1n 1947, see section 6. sulting from active service in the armed lowing is the lesser: forces of any country, unless such amounts " (A) the amount ·by which the wages ex SEc. 4. Additional Credit Against Net Income are also excluded from gross income by a ceed the number of withholding exemptions for Normal Tax and Surtax. provision of law other than section 22 (b) claimed, multiplied by the amount of one (a) Exemption for age: Section 25 (b) (1) (5); or such exemption as shown in the table in of the Internal Revenue Code (relating to " (2) to amounts excluded from gross in subsection (b) (1); or credits against net income for normal tax arid come under sect ion 3 of the act entitled 'An "(B) the amount shown in the second surtax) is hereby amended by striking out the act to safeguard the estates of veterans de column in the table in subsection (b) ( 1); period at the end of subparagraph (C) and rived from payments of pension, compensa "(2) 18 percent of whichever of the fol inserting in lieu thereof a semicolon and by tion, emergency officers' retirement pay and lowing is the lesser: adding after subparagraph (C) a new sub insurance, and for other purposes,' approved "(A) the amount by which the wages ex paragraph to read as follows: August 12, 1935, as amended (U. S. C. , 1940 ceed the sum of- "(D) If the taxpayer has attained the age ed., title 38, sec. 454a); or " (i) the number of withholding exemp of 65- "(3) to amounts excluded from gross in tions claimed, multiplied by the am ount of .. (i) an additional exemption of $500; come under section 3 of the act entitled 'An one such exemption as shown in the table "(ii) in the case of a joint return by hus act to establish 1n the War Department and in subsection (b) (1); plus band and wife under section: 51, an exemp in the Navy Department, respectively, a roll, "(ii) the amount shown in the second col umn in the table in subsection (b) (1); or tion, in lieu of the exempti~n provided in designated as "the Army and Navy medal of clause (i) of this subparagraph, of $500 for honor roll,'' and for other purposes,' approved "(B) the amount shown in the third col each spouse who has attained the age of 65, umn in the table in subsection (b) (1); April 27, 1916, as amended (U. S. C., 1940 ed., "(3) 14 percent of whichev.er of the fol and whose gross income (computed without title 38, sec. 393) ." lowing is the lesser: regard to section 22 ( o) ) for the taxable year (d) Technical amendment: Section 22 (b) is $500 or more; , "(A) the amount by which the wages ex (5) of the Internal Revenue Code (relating ceed the sum of- "(iii) for limitation on ~xclusion frotn to exclusion from gross income of compen gross income of retirement pa;y, etc., see sec- " (i) tl;le number of withholding exemp sation for injuries or sickness) is hereby tions claimed, multiplied by the amount of tion 22 (o) ." . amended by striking out "and amounts" and (b) Determination of age: ;section 25 (b) one such exemption as shown in the table inse~ting in lieu thereof: "and (except as (2) of the Internal Revenue Code is hereby in subsection (b) (1); plus · provided in subsection ( o) in the case of amended by adding at the ensection,. be i.ng ex- to 12-per- to 18-per· to 14-per- excluded from gross income, then only the emption cent rate cent rate cent rate excess over $500 of tlie aggregate of such amounts shall be excluded from gross in weekly ------$11.00 $21.00 $9. 00 $13.00 come, despite any provisions of .this title or 22. 00 43.00 17.00 2.5. 00 of any other law. This subsection shall not 23. 00 46. 00 19.00 28.00 require the inclusion of any such amount as 46. 00 93.00 36.00 56. 00 Quarterly ___ ------___ ------______------______gross income unless the gross income, com ~~~7iifSemiannual_i_~~ __ ~------~: == = =______======:: == ==_ =_ =_ =______======_ =___ = = =- =- =-- = -: =:-______::::::: = =_ 139. 00 278. 00 110. 00 168.00 278. 00 .556.00 219. 00 336.00 puted without regard to this subsection, is AnnuaL ___ ------__ 556. 00 1, 111.00 440. 00 671.00 $500 or more. This subsection shall not Daily or miscellaneous (per day of such period) ______1.50 3. 00 1.00 2.00" apply- 2768 CONGRESSIONAL RECORD-HOUSE MARCH 27 (b) Wage bracket withholding: The tables contained in section 1622 (c) (1) of the Internal Revenue Code (relat ing to wage bracket withholding) are hereby amended to read as follows: "If the pay-roll period with respect to .an employee is weekly- And the wages are- And the number of withholding exemptions claimed is- 0 1 2 3 4 5 6 7 8 9 110 or more At least But less than I I I I I I I The amount of tax to be withheld shall be- $0 ______$11______12% ofwages $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $1L •••••••••••••• $12. ------· $1.40 .10 0 0 0 0 0 0 0 0 0 $12. ------$13 .•• ------1. 50 .20 0 0 0 0 0 0 0 0 0 $13.------$14.------1. 60 .30 0 0 0 0 0 0 0 0 0 $14 ______------$15. ------1. 70 .50 0 0 0 0 0 0 0 0 0 $15.------$16. ------1. 90 .60 0 0 0 0 0 0 0 0 0 $16. ------$17------2. 00 • 70 0 0 0 0 0 0 0 0 0 $17------$18.------2. 10 .80 0 0 0 0 0 0 0 0 0 $18.------$19.------2. 20 .90 0 0 0 0 0 0 0 0 0 $19.------$20. ------2. 30 1.10 0 0 0 0 0 0 0 0 0 $20.------$2L ------2. 50 1. 20 0 0 0 0 0 0 0 0 0 $2L •••• ------$22. ------2.60 1. 30 0 0 0 0 0 0 0 0 (i $22. ------$23. ------2.80 1.40 .10 0 0 0 0 0 0 0 0 $23.------$24. ------2. 90 1. 50 .30 0 0 0 0 0 0 0 0 $24.------$25.------3. 10 1. 70 .40 0 0 0 0 · o 0 0 0 $25. ------$26. ------3. 30 1. 80 .50 0 0 0 0 0 0 0 0 $26. ------$27------3. 50 1.90 .60 0 0 0 0 0 0 0 0 $27------$28. ------3. 70 2. 00 • 70 0 0 0 0 0 0 0 0 $28.------$29. ------3.80 2.10 .90 0 0 0 0 0 0 0 0 $29. ------$30. ------4. 09 2. 30 1- 1. 00 0 0 0 0 0 0 0 0 $$33L0. ---______------$3L ------4. 20 2.40 1.10 0 0 . 0 o· 0 0 0 0 $32.------4.30 2. 50 1. 20 0 0 0 0 0 0 0 0 $32. ------$33. ------·- 4. 40 2. 60 1. 30 .10 0 0 0 0 0 0 0 $33.------$34. ------4. 60 2.80 1. 50 .20 0 0 0 0 0 0 0 $34 _____ ------$35 _____ ------4. 70 3.00 1.60 .30 0 0 0 0 . $35______------0 0 0 $36.------4. 90 3. 20 1. 70 . 40 0 0 0 0 0 0 0 $36.------$3$.178- _------______5. 00 3.40 1. 80 .50 0 0 0 0 0 0 0 $37------5.10 3. 50 1.90 • 70 0 0 0 0 0 0 0 ~38 •••••• ------$4$390. ___------______--- 5.30 3. 70 2.10 .80 0 0 0 0 0 0 0 $39. ------~ ------$41______5.40 3.90 2. 20 .90 0 0 0 0 0 0 0 $$440.-1______------5. 50 4. 10 2. 30 1. 00 0 0 0 0 0 0 0 $42______------5. 70 4. 20 2. 40 1.10 0 0 0 0 0 0 0 $42 ____ ------$43.------5. 80 4.40 2. 50 1. 30 0 0 0 0 0 0 0 $43.------$44_------6.00 4. 50 2. 70 1.40 .10 0 0 0 0 0 0 $44 •• ------$45 ___ ------6. 10 4.60 2. 90 1.50 . 20 0 0 0 0 0 0 ~45.------$46.------6. 30 4.80 3. 10 1. 60 .30 0 0 0 0 0 0 $46 _____ ------$47------6.40 4. 90 3. 20 1. 70 . 50 0 0 0 0 0 0 $47------$48.------6.60 5.00 3.40 1. 80 .60 0 0 0 0 0 0 $48 •••• ------$49 _____ ------6. 70 b. 20 3. 60 2.00 . 70 0 0 0 0 0 0 $49.------$5$50L. ------______------_ 6. 90 5. 30 3. 80 2.10 .80 0 0 0 0 0 0 $50.$51_ ------______7.00 5.40 4. 00 2. 20 .90 0 0 0 0 0 0 $52. ------7.20 5. 60 4.10 2.30 1. 00 0 0 0 0 0 · o $52. ------$53 . • ------7.30 5. 70 4.30 2. 40 1. 20 0 0 0 0 0 0 $53 •• ------$$5554 .______------_ 7. 50 5.90 4.40 2. 60 1. 30 0 0 0 0 0 0 $54 ___ ------7.60 6.00 4. 50 2.80. 1. 40 .10 0 0 0 0 0 $55. ------$$56.57 _------______,: ______- }. 80 6.20 4. 70 2.90 1.50 .20 0 0 0 0 0 $56.------90 6. 30 4.80 3. 10 1.60 .40 0 0 0 0 0 :r$5578 ------______$58. ------8.10 6. 50 4. 90 3.30 1. 80 .50 0 0 0 0 0 $59.------8. 20 6. 60 5. 10 3. 50 1.90 .60 0 0 0 0 0 $59. ------$60. ------8.40 6.80 5.20 3. 70 2.00 . 70 0 0 0 0 0 $00.------$62.------8.60 7.00 5.40 3.90 2. 20 .90 0 0 0 0 0 $62______------$64.------8. 90 7.30 5. 70 4. 20 2.40 1.10 0 0 0 0 0 $64. ------$66. ------9.20 7.60 6. 00 4. 50 2. 70 1.40 .10 0 0 0 0 $66. ------$68.------9. 50 7.90 6. 30 4. 80 3.10 1. 60 . 30 0 0 0 0 $68. ------$70. ------9.80 8. 20 6. 60 5.10 3. 40 1. 90 .60 0 0 0 0 :t70. ------$72.------10.10 8. 50 6. 90 5.30 3.80 2.10 .80 0 0 0 0 $72. ------· ---- $74.------10.40 8.80 7. 20 5. 60 4.10 2.30 1.10 0 0 0 0 $74_------$76.------10. 70 9.10 7. 50 5.90 4.40 2. 60 1. 30 0 0 0 0 $76 ______------$78.------11.00 9.40 7.80 6. 20 4. 70 3.00 1.50 .30 0 0 0 $80 ______11. 30 9. 70 8.10 6. 50 5. 00 $78.------$82______3.30 1. 80 . 50 0 0 0 $80.------11.60 10. 00 8.40 6.80 5. 20 3. 70 2. 00 . 70 0 0 0 $82. ------$84. ------11. 90 10.30 8. 70 7.10 5. 50 4.00 2. 30 1.00 0 0 0 $84.------$86. ------~ - - 12.20 10. 60 9.00 7.40 5.80 4.30 2. 50 1.20 0 0 0 $86 ______----- $88 ___ __------12.50 10.90 9.30 7. 70 6.10 4.60 2. 80 1. 50 .20 0 0 $88 •• ------$90 •••• ------12.80 11.20 9. 60 8.00 6. 40 4.90 3. 20 1. 70 .40 0 0 $90 . ••••• ------$92.------13.10 11.50 . 9. 90 8. 30 6. 70 5.10 3. 60 1.90 . 70 0 0 $92••• ------$94 . •• ------13.40 11. 80 10. 20 8.60 7.00 5.40 3. 90 2. 20 . 90 0 0 $94 ••• ------$96 •••• ------13.70 12. 10 10.50 8. 90 7.30 5. 70 4. 20 2.40 1.10 0 0 $96.------$98.------14.00 12. 40 10.80 9. 20 7. 60 6. 00 4. 50 2. 70 1. 40 .10 $100 ______0 $98.------14.30 12.70 11.10 9. 50 7. 90 6.30 4.80 3.10 1. 60 .30 0 $100.------$10.5.------14. 80 13.20 11.60 10.00 8.40 6.80 5. 30 3. 70 2.00 .80 0 15. 60 14.00 12. 40 10.80 9. 20 7. 50 5. 90 $105.------$$115110.------______------4. 50 2. 70 1. 40 .10 $110.------16.30 14.70 13. 10 11.50 9. 90 8. 30 6. 70 5. 20 3. 60 2.00 . 70 $1$ 11205- _------~______$120 ••••••• ------17.10 15.50 13.90 12.30 10. 70 9.10 7.40 5. 80 4. 40 2. 60 1.30 . $125.------17.80 16. 20 14. 60 13.00 11.40 9. 80 8. 20 6. 60 5.10 3. 50 1. 90 $125 .• ------$130 ______------18.60 17. 00 15.40 13.80 12. 20 10.60 9.00 7. 30 5. 70 4. 30 2. 50 $13530 ._------______$135 . ••• ------19.30 17.70 16.10 14.50 12. 90 11.30 9. 70 8.10 6. 50 5.00 3. 30 $140 _____ ------20.10 18. 50 16.90 15.30 13. 70 12. 10 10.50 8.80 7. 20 5. 70 4.20 $140 •• ------$145.------20.90 19. 30 17.60 16. 00 14.40 12. 80 11. 20 9. 60 8. 00 6.40 4. 90 $145 ______------$150.------21.60 20.00 18. 40 16.80 15. 20 13.60 12.00 10.40 8. 70 7. 10 5. 60 $150 . • ------$160 .• ------22. 70 21.10 19. 50 17. 90 16. 30 14. 70 13.10 11.50 9. 90 8. 30 6. 70 $170 ______------24.20 $160 •• ------$180 ______22.60 21.00 19. 40 17.80 16.20 14. 60 13.00 11.40 9. 80 8. 20 $170 •• ------25.70 24. 10 22. 50 20.90 19.30 17.70 16. 10 14.50 12.90 11. 30 9. 70 $190 •••• ------27.30 25.60 24.00 22.40 20.80 19.20 17. 60 16.00 14. 40 0 $200 ______12. 80 11. 20 28.80 27.10 25.50 23.90 22.30 20.70 19.10 17.50 15.90 14.30 12.70 ~ i~ ======15 percent of the excess over $200 plus $200 and over_------29.~ 1 27.90 1 26.30 1 24.70 1 23.10 1 21.50 1 19.90 1 18.30 1 16. 60 1 15. oo 1 13. 40 1947 ·coNGRESSIONAL RECORD-HOUSE 2769 "If the pay-roll period with respect to an employee is biweekly- And the wages are- And the number of withholding exemptions claimed is- {) 1 2 3 4 5 6 7 8 9 110 or more At least But less than I I I I I I I I The amount of tax to be withheld shall be- $20 ______$0.----- ~ ------$22 ______12% ofwages $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $20.------$2.50 0 0 0 0 0 0 0 0 0 0 $22 ___ _------$24_ ------2.80 . 20 0 0 0 0 0• 0 0 0 0 $24.------$26 ______------3. 00 . 40 0 0 0 0 0 0 0 0 0 $26 ______------0 0 0 0 $28.------$::10 ______3. 20 • 70 0 0 0 0 0 $2ft------3. 50 . £0 0 0 0 0 0 0 0 0 0 $30 ______0 0 0 0 0 0 $il2 ______$.32.------$34 ______3. 70 1.20 0 0 0 4. 00 1.40 () 0 0 0 0 0 0 0 0 $34. ------$36 __ ------4. 20 1. GO 0 0 0 0 0 0 0 0 0 $38 ______------0 $36 .• ------$40 ______4.<10 1. 90 0 0 0 0 0 0 0 0 0 0 0 0 0 0 $3R .• ------$42 ______- 4. 70 2.10 0 0 0 $40 ______4. 90 2. 40 0 0 0 0 0 0 0 0 0 $42 ______------$44 ___ _------5. 20 2. 60 0 0 0 0 0 0 0 0 0 $46 ______------~4------5. 50 2. 80 . 30 0 0 0 0 0 0 0 0 5. 90 3.10 . 50 0 0 0 0 0 0 0 0 $46.-$48 ______------$48.------$50 •• ------6. 20 3. 30 . 70 0 0 0 0 0 0 0 0 1. 00 0 0 0 0 0 0 0 $50_ ------$54$52 ______------_ 6. 60 3. 50 0 $52 __ ------7.00 3.80 1. ::o 0 0 0 0 0 0 0 0 $54.------$56. ------.----- 7. 30 4.00 ]. 50 0 0 0 0 0 0 0 0 $58 ______0 0 $5f\_ ------$60 ______7. 70 4. 30 1. 70 0 0 0 0 0 0 1. 90 0 0 0 0 0 0 0 ~58. ------$f\2 ______8.00 4. 50 0 $60_ ------8 ..:30 4. 70 2. 20 0 0 0 0 0 0 0 0 2. 40 0 ·0 0 0 0 0 0 $62.------$66$64 .•______------______- 8. 60 5. 00 0 $64 _____ ------8. 90 5. 30 2. 70 .10 0 0 0 0 0 0 0 $66_ ------$68 .. ------9. 20 5.60 2. 90 .30 0 0 0 0 0 0 0 :1,68 ______$70 ______9. 40 6.00 3.10 .60 0 0 0 0 0 0 0 S,70_ ------$72 ______------9. 70 6.40 3. 40 .80 0 0 0 0 0 0 0 $72.------$74 ___ ------· 10.00 6. 70 3. 60 1.10 0 0 0 0 0 0 0 *74 ______$76 ______- 10.30 7.10 3. !!O 1. 30 0 0 0 0 0 0 0 $78 ______10.50 7.40 4.10 1.50 0 0 0 0 0 0 0 ii>76.------$80 ______S-78. _------_- ---- 10.80 7. 80 4.30 1. 80 0 0 0 0 0 0 0 $82 ______4. 60 2.00 0 0 0 0 0 0 0 S.80. ------$84 ______11.10 8.20 $82_------11.40 8.40 4.80 2. 30 0 0 0 0 0 0 0 $86 ______5.10 2. 50 0 0 0 0 0 0 0 $84.------$88 ______11.60 8. 70 $86.------11.90 9.00 5. 40 2. 70 . 20 0 0 0 0 0 0 $88 ______12.20 9. 30 5. 80 3.00 .40 0 0 0 0 0 0 $90 ______$90.------$92_------12.50 9.50 6.10 3. 20 . 70 0 0 0 0 0 0 $92_------$94.------12.80 9.80 6. 50 3. 50 .90 0 0 0 0 0 0 $94 ______$96 ______13.10 10.10 6.80 3. 70 1.10 0 0 0 0 0 0 !!:96 ______$98 ______13.40 10.30 7. 20 3. 90 1.40 0 0 0 0 0 0 $100 ______3.98_------13.70 10.60 7. 60 4.20 1. 60 0 0 0 0 0 0 $100 ______$102 ______14. 00 10.90 7. 90 4. 40 1. 90 0 0 0 0 0 0 $102 ______$104 ______14.30 11.20 8. 20 4. 70 2.10 0 0 0 0 0 0 $106 ______- $104 _____ ------14.60 11.40 8. 50 4.90 2.30 0 0 0 0 0 0 H06 ______$108 ______- 14.90 11.70 8.80 5.10 2. 60 0 0 0 0 0 0 $108 ______$110 ______15.20 12.00 9.10 5. 50 2.80 .30 0 0 0 0 0 $110------$112.------15.50 12.30 9. 30 5. 90 3.10 . 50 0 0 0 0 0 $112 ______$114 ______15.80 12.60 9. 60 6. 20 3. 30 . . 70 0 0 0 0 0 $116 ______$114.------16.10 12. 90 9. 90 6. 60 3. 50 1.00 0 0 0 0 0 $116 ______$118______------16.40 13.20 10.20 6. 90 3. 80 1.20 0 0 0 0 0 $118.------$120.------16.70 13.50 10.40 7. 30 4.00 1. 50 0 0 0 0 0 ~!il20 ______$124 •• ------17.20 14.00 10.80 7. 80 4. 40 1.80 0 0 0 0 0 $128______2. 30 $124_ ------17.80 14.60 11.40 8. 50 4. 90 0 0 0 0 0 $128 __ ------$132 ______------18.40 15. 20 12.00 9. 00 5.40 2. 80 .20 0 0 0 0 $132 ______$136__------19. 00 15.80 12.60 9. 60 6. 20 3. 30 . 70 0 0 0 0 $136 ______$140 ______19.60 16.40 13.20 10.10 6. 90 3. 70 1. 20 0 0 0 0 $! 15 percent of the excess over $400 plus $400 and over______42.90 33.30 26.90 59. oo 1 55.80 1 52.60 1 49.40 1 46.20 1 39.70 1 36.50 1 I 30.10 1 XCI!I--175 2770 CONGRESSIONAL RECORD-HOUSE MARCH 27 "If the pay-roll period with respect to an employee is semimonthly- And the wages are- And the number of withholding exemptions claimed is- 0 2 6 8 110 or more . _ At least _ But less than The amount of tax to be withheld shall be- $()______$22 ___ ------12%of wages $22 ______$24______$2.80 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 0 0 0 0 0 0 0 0 0 0 $24______$26______3. 00 .20 0 0 0 0 $26______$28______3. 20 0 0 0 0 0 . 50 0 0 0 0 0 0 0 0 0 $28______$30______3. 50 • 70 0 $30______$32______3. 70 0 0 0 0 0 0 0 0 .90 0 0 0 0 0 0 0 0 0 2______$34______4. 00 1.20 0 0 0 0 0 0 0 $34______$36______4. 20 0 0 1. 40 0 0 0 0 0 0 0 0 0 $36______$38______4. 40 1. 70 0 0 0 0 0 0 $38______$40______4. 70 0 0 0 1.90 0 0 0 0 0 0 0 0 0 $40______$42______4. 90 2.10 0 $42______$44______5. 10 0 0 0 0 0 0 0 0 $44______$46 ______.____ 5. 40 2.40 0 0 0 0 0 0 0 0 0 2.60 0 $46______$48______5. 70 0 0 0 0 0 0 0 0 2.90 . 10 0 0 0 0 0 0 0 0 $48______$50·------~------6. 00 3.10 . 30 0 0 0 0 0 0 0 0 $50______$52______6. 40 3. 30 .60 $52______$54______6. 70 0 0 0 0 0 0 0 0 3.60 .80 0 0 0 0 0 0 0 0 $54______$56______7. 10 3.80 1.00 $56______$58______7. 50 0 0 0 0 0 0 0 0 4.10 1. 30 0 0 0 0 0 0 0 0 $58______$60______7. 80 4.30 $6()______$62______8. 20 1.50 0 0 0 0 0 0 0 0 4. 50 1.80 0 0 0 0 0 0 0 0 $62______$64______8. 50 4.80 2.00 0 0 $64______$66______8. 90 0 0 0 0 0 0 5.00 2. 20 0 0 0 0 0 0 0 0 $66______$68______9. 20 5.20 2. 50 $68______$70______9. 40 0 0 0 0 0 0 0 0 5. 50 2. 70 0 0 0 0 0 0 0 0 ·$70______$72______9. 70 5.80 3.00 $72 ______$74______10.00 . 20 0 0 0 0 :- 0 0 0 6. 20 3. 20 .40 0 0 0 0 0 0 0 $74______$76______10.30 6. 50 3.40 . 70 0 0 $76______$78______10. 50 0 0 0 0 0 6. 90 3. 70 . 90 0 0 0 0 0 0 0 $78______$80______10.80 7.30 3. 90 $80______$82______11.10 1.10 0 0 0 0 0 0 0 $82 ______$84 __ .______11.40 7.60 4. 20 1. 40 0 0 0 0 0 0 0 8.00 4.40 $84 ______$86______11.60 1. 60 0 0 0 0 0 0 0 $86 ______. _____ $88______11.90 8.30 4.60 1.90 0 0 0 0 0 0 0 8. 70 4. 90 2.10 $90______12.20 0 0 0 0 0 0 0 $88 ______9.00 5.10 2. 30 0 0 $90______$92______12.40 0 0 0 0 0 9. 30 5. 40 2.60 0 0 0 0 0 0 0 $92______$94______12. 70 9.60 5. 60 2.80 0 0 $94______$96______13. 00 0 0 0 0 0 9.80 6. 00 3. 10 . 30 0 0 0 0 0 0 $96_.______$98______13. 30 10.10 6. 30 3. 30 . 50 0 0 $98______$100______13. 60 0 0 0 0 10.40 6. 70 3. 50 .80 0 0 0 0 0 0 $100______$102______13.90 10.70 7.10 3. 80 1.00 0 0 $102______$104______14.20 0 0 0 0 10.90 7.40 4.00 1.20 0 0 0 0 0 0 $104------$106______14. 50 11.20 7.80 4. 30 1.50 0 0 0 0 0 0 $106______$108------~- 14.80 11.50 8.10 4. 50 1. 70 0 0 0 0 0 0 $108------.-- $110------15.10 11.70 8. 50 4. 70 2.00 0 0 0 0 0 0 $110------$112______15.40 12.00 8. 90 5.00 2.20 0 0 $112______$114______15. 70 0 0 0 0 ' 12. 30 9.10 5.20 2. 40 0 0 0 0 0 0 $114------$116______10.00 12.60 9. 40 5. 50 2. 70 $116______$118______16.30 0 0 0 0 0 0 12.90 9. 70 [;.80 2. 90 .20 0 0 0 0 0 $118------$120______16. 60 13.20 9.90 6.10 3.20 $120 ______$12-L------17.10 .40 0 0 0 0 0 13. 60 10.40 6. 70 3. 50 . 70 0 0 0 0 0 $124------$128 ______17.70 14. 20 10.90 7.40 4. 00 1.20 0 0 0 0 0 $128J------$132______18.30 14.80 ll.50 8.10 4. 50 1. 70 0 0 0 0 0 $132------$136------18.90 15.40 12.00 8.80 5.00 2. 20 0 $136------$140 ______._ 19.50 0 0 0 0 16.00 12.50 9.40 5.40 2. 70 0 0 . 0 0 0 $140------$144______20.10 16.60 13.10 $144 ______$148______20.70 9. 90 6.10 3.10 .40 0 0 0 0 17.20 13.70 10.50 6.80 3.60 .90 0 0 0 0 $148------$152______21.30 17. so 14.30 11.00 7. 50 4.10 1. 30 0 0 0 0 $152------$156------:11.90 18.40 14.90 11.60 8.30 4. 60 1.80 0 0 0 0 $156------$160______22.50 19.00 15. 50 12.10 8. 90 ·5.10 2. 30 0 0 0 0 $160------$164------23.10 19.60 16.10 12.70 9. 50 5. 50 2.80 0 0 0 0 $164------$168------23.70 20.20 16.70 13.30 10.00 6.30 3.20 .50 0 0 0 $168------$112------24. ao 20.80 17.30 13.90 10.60 7.00 3. 70 1.00 0 0 0 $112------$176______24.90 21.40 17. 90 14.50 11.10 $176______$180 ______.. 25. 50 7. 70 4.20 1.40 0 0 0 22.00 18.60 15.10 11.70 8.40 4. 70 1.90 0 0 0 $180------$184------26.10 22.60 19.20 15.70 12.20 9.10 5.20 2. 4{) 0 0 0 $184------$188------26.70 23.20 19.80 16. 30 12.80 9.60 5. 70 2.90 . 10 0 0 $188______$192______27. 30 23.80 20. 40 16.90 13.40 10.20 6.40 3.30 .60 0 0 $192______$196______27.90 24.40 21.00 17.50 14.00 10.70 7.10 3.80 1.10 $196______$200______28. 50 0 0 25.00 21.60 18.10 14.60 11. 30 7.80 4.30 1.50 0 0 $200______$210______29. 60 26.10 22.60 19.10 15.60 12.20 9.09 5.10 2.40 0 0 $210------·--- $220______31. 10 27.60 24.10 20.60 17.20 13.70 10.40 6. 70 3.60 .80 0 $220______$230______32.60 29.10 25.60 22.10 18.70 15.20 11.80 8. 50 4.80 2.00 0 $230______$240______34. 10 30.60 27.10 23.60 20.20 16.70 13.20 10.00 6. 20 3.20 0 $240______$250______35.60 32.10 28.60 25.10 21.70 $250 ______$260______37.10 18.20 14. 70 11.30 8.00 4.40 1. 6J 33.60 30.10 26. 70' 23.20 19.70 16.20 12.70 9.60 5.60 2.80 $260______$270______38. 60 35.10 31.60 28.20 24.70 21.20 17.70 14.20 10.90 7.40 4.00 $270______$280______40. 10 36.60 33.10 29.70 26.20 22.70 19.20 15.70 12.30 9.10 5.20 $280______$290______41. 60 38.10 34.60 31.20 27.70 24.20 20.70 17.20 13.70 10.50 6.80 $290 ______$300______43.10 39.60 36.20 32.70 29.20 25.70 22.20 18.70 15.30 11.90 8.60 $30Q______$320______45. 40 41.90 38.40 34.90 31.40 28.00 24.50 21.00 17.50 14.00 10.70 $320______$340______48.40 44.90 41.40 37.90 34.50 31.00 27.50 24.00 20.50 17.00 13.60 $340------$360______51. 40 47.90 44.40 40.90 37.50 34.00 30.50 27.00 23.50 20.00 16.60 $360______$380______54. 40 50.90 47.40 44.00 40.50 37.00 :13.50 30.00 26.50 23.10 19.60 $380______$400______57. 40 53.90 $4QO ______$420 ______._ __ 60. 40 50.40 47.00 43.50 40. 00 36.50 33.00 29.50 26.10 22.60 56.90 53.50 50.00 46.50 43.00 39.50 36.00 32.60 29.10 25.60 $420______$440______63. 40 60.00 56.50 53.00 49.50 46.00 42.50 39.10 35.60 32.10 28.60 $440______$460______66. 40 63.00 59.50 56.00 52.50 49.00 45.50 42.10 38.60 35.10 31.60 $460 ______$480______69.50 66.00 62.50 59.00 55.50 $480 ______$500______72. 50 52.00 48.60 45.10 41.60 38.10 34.60 69.00 65.50 62.00 58.50 55.00 51.60 48.10 44.60 41.10 37.60 15 percent of the excess over $500 plus $500 and over______67.00 74. oo 1 70. 50 1 63.60 60.00 1 66.60 1 63.10 1 49.60 1 46.10 1 39. 1( 1947 CONGRESSIONAL RECORD~HOUSE 2771 "If the pay-roll period with respect to an employee is monthly- And the wages are- And the number of withholding exemptions claimed is- 0 1 2 3 4 ll 6 7 8 9 10 or more At least But less than I I The amount of tax to be withheld shall be- $44 ______$0 $0 $0 $0.------_ 12%ofwages $0 $0 $0 $0 $0 $0 $0 $44 ______$48 ______------$5.50 0 0 0 0 0 0 0 0 0 0 0 0 $48 ___ ------$52.------6. 00 .40 0 0 0 0 0 0 0 6. 50 . 90 0 0 0 0 0 0 0 0 0 $52 ___ ------$56 __ ------0 0 0 $56.------$60 ______------6.90 1.40 0 0 0 0 0 0 $60 ______$64 ______------7.40 1.90 0 0 0 0 0 0 0 0 0 7.90 2.40 0 0 0 0 0 0 0 0 0 $64 ____ ------$68 ••• ------0 0 0 $68.------$72_ ------8.40 2.80 0 0 {) 0 0 0 $72 ______8.90 3. 30 0 0 0 0 0 0 0 0 0 $76 •• ------0 0 0 0 $76_------$80------9. 30 3.80 0 0 0 0 0 $84 ______9. 80 4.30 0 0 0 0 0 0 0 0 0 $80_------0 $88.------10.30 4.80 0 0 0 0 0 0 0 0 $84.------0 0 0 0 0 $88------$92_ ------10.80 5. 20 0 0 0 0 .20 0 0 0 0 0 0 0 $92 ___ ------$96.------$100 ______11.30 5. 70 0 $96 ______------12.10 6. 20 .60 0 0 0 0 0 0 0 0 0 0 $100 ______------$104:.------12.80 6. 70 1.10 0 0 0 0 0 0 $104 ______------13.50 7.10 1. 60 0 0 0 0 0 0 0 0 $108 ______$108.------0 0 0 $112.------14. 20 7.60 2.10 0 0 0 0 0 14.90 8.10 2.60 0 0 0 0 0 0 0 0 $112.------$116.------0 0 0 0 $116.------$120.------15.70 8.60 . 3.00 0 0 0 0 16.40 9.10 3. 50 0 0 0 0 0 0 0 0 $120.------$124.------$128 ______-- 0 0 0 0 $124.------17.10 9. 50 4. 00 0 0 0 0 $128 ______$132 ______------17.80 10.00 4. 50 0 0 0 0 0 0 0 0 $132 ____ • ______0 0 0 $136 __ ------18.30 10.50 5. 00 0 0 0 0 0 $136 ______---- 18.90 11.00 5.40 0 0 0 0 0 0 0 0 $140.------0 0 0 0 0 0 $140·------~--- $144.------19.40 11.60 5. 90 .40 0 20.00 12.40 6.40 . 90 0 0 0 0 0 0 0 $144.------$148.------0 0 0 $152.------20.50 13.10 6.90 1. 30 0 0 0 0 $148.------0 0 0 0 0 0 $152 •• ------$156.------21.10 13.80 7.40 1. 80 0 $156 ______------21.60 14.50 7.80 2.30 0 0 0 0 0 0 0 $160.------0 0 0 0 $160.------$164 ______----- 22.20 15.20 8. 30 2.80 0 0 0 22.70 16.00 8.80 3. 20 0 0 0 0 0 0 0 $164.------$168.------0 - 0 0 $172.------23.30 16.70 9. 30 3. 70 0 0 0 0 $168 •• ------0 0 0 0 0 0 $172 ••• ------$176 ______------23.80 17.40 9. 70 4. 20 0 24.40 18.00 10.20 4. 70 0 - 0 0 0 0 0 0 $176.------$180 ______$180.------0 0 0 $184.------24.90 18.60 10.70 5.20 0 0 0 0 $184 ______- 25.50 19.10 11.20 5.60 .10 0 0 0 0 0 0 $188 ______$188.------0 0 0 $192.------26.10 19.70 12.00 6.10 .60 0 0 0 $196 _____ ------26.70 20.20 12.70 6.60 1.10 0 0 0 0 0 0 $192.------$200 ______--- 0 0 0 0 0 $196.------27.30 20.80 13.40 7.10 1.50 0 $204 ______- 27.90 21.30 14.10 7.60 2.00 0 0 0 0 0 0 $200.------0 0 0 0 $204.------$208.------28.50 21.80 14.80 8. 00 2. 50 0 0 $208 ______$212 ______----- 29.10 22.40 15.60 8. 50 3.00 0 0 0 0 0 0 3. 40 0 0 0 0 0 0 $212 ••• ------$216 ______------29.70 22.90 16.30 9.00 $216 ______----- $220 ______30.30 23.50 17.00 9.50 3. 90 0 0 0 0 0 0 $220 ______0 0 0 $224.------30.90 24.00 17.70 9.90 4.40 0 0 0 $224 ______--- 31.50 24.60 18.30 10.40 4. 90 0 0 0 0 0 0 $228 ______$228.------0 0 0 0 0 0 $232 .• ------32.10 25.10 18.80 10.90 5.40 $236 ______25.70 19.30 11.50 5.80 .30 0 0 0 0 0 $232 ••• ------32.70 0 $236 ______------$240 _____ ------33.30 26.30 19.90 12.30 6. 30 .80 0 0 0 0 34.20 27.20 20.70 13.30 7.00 1. 50 0 0 0 0 0 $240.------$248 ••• ------8.00 2.50 0 0 0 0 0 $248.------$256 •• ------35.40 28.40 21.80 14.80 $256 ______$264 ______------22.90 16.20 9.00 3. 40 0 0 0 0 0 $272 ______36.60 29.60 0 37.80 30.80 24.00 17.70 9.90 4.40 0 0 0 0 $264.------10.90 5. 30 0 0 0 0 0 $272.------$280 ••• ------39.00 32.00 25.10 18.80 40.20 33.20 26.30 19.90 12.20 6.30 . 70 0 0 0 0 $280.------$288.------1. 70 0 0 0 0 $288 ______------$296.------41.40 34.40 27.50 20.90 13.60 7.20 15.10 8.20 2. 70 0 0 0 0 $296 ____ ------$304 .• ------42.60 35.60 28.70 22.00 $304 ______43.80 36.80 29.90 23.10 16.50 1}, 20 3. 60 0 0 0 0 $312 ______$312.------4. 60 0 0 0 0 $320.------45.00 38.00 31.10 24.20 17.90 10.10 46.20 39.30 32.30 25.30 19.00 11.10 5.50 0 0 0 0 $320.------$328_$336 ______------12.50 6. 50 .90 0 o· 0 $328 ___ ------47.40 40.50 . 33.50 26.50 20.10 41.70 34.70 27.70 21.20 14.00 7.40 1. 99 0 0 0 $336.------$344_------48.60 0 0 $352 ____ ------49.80 42.00 35.90 28.90 22.30 15.40 8.40 2.90 0 $344_ ------37.10 30.10 23.40 16.80 9.40 3.80 0 0 0 $352_------$368$360______------51.00 44.10 52.20 45.30 38.30 31.30 24.50 18.10 10.30 4.80 0 0 0 $360.------.20 0 0 $368 ______------$376 ____ ------53.40 46.50 39.50 32.50 25.60 19.20 11.40 5. 70 12.80 6. 70 1. 20 0 0 $376 ______------$384.------54.60 47.70 40.70 33.70 26.80 20.30 55.00 48.90 41.90 35.00 28.00 21.40 14.30 7. 70 2.10 0 0 $384_ ------$392.------22.50 15.70 8.60 3.10 0 0 $392 ______$400 .. ------57.10 50.10 43.10 36.20 29.20 $400 ______$420 ______59.20 52.20 45.20 38.30 31.30 24.40 18.10 10.30 4. 70 0 0 $440 ______62.20 55.20 48.20 41.30 34:30 27.30 20.80 13.50 7.10 1.60 0 $420 .• ------$460 ______51.20 44.30 37.30 30.30 23.60 17.10 9. 50 4.00 0 $440.------65.20 58.20 .80 $460 ______$480 ______68.20 61.20 54.30 47.30 40.30 33.40 . 26.'i0 20.00 12.40 6.40 $480 ______$500 ______57.30 50.30 43.30 36.40 29.40 22.70 16.00 8. 80 3. 20 71.20 64.20 5.60 $520 ______74.20 67.20 60.30 53.30 46.30 39.40 32.40 215.40 19.10 11.20 $500 ______------21.80 14.80 8. 00 $52{) ______------$540 ______77.20 70.30 63.30 56.30 49.40 42.40 35.40 28.50 $560 ______66.30 59.30 52.40 45.40 38.40 31.50 24.60 18.20 10.40 $540_ ------80.20 73.30 13.70 $560 ______$580 ______83.20 76.30 69.30 62.30 55.40 48.40 41.40 34.50 27.50 21.00 $600 ______65.30 58.40 51.40 44.40 37.50 30.50 23.70 17.30 $580 __------~ 86.20 79.30 72.30 $600 ______$640 ______---- 90.80 83.80 76.80 69.00 62.90 55.90 49.00 42.00 35.00 28.10 21.50 $680 ______82.80. 75.00 b8. 90 61. oo . 55.00 48.00 41.00 34.10 27.10 $640.- -~------96.80 89.80 33.10 $720 ______102.80 95.80 88.90 81.00 74.00 68.00 61.00 54.00 47.10 40.10 $680.------74.00 67.00 60.10 53.10 46.10 39.20 $720 __ __ ------$760 .• ------108.80 101.90 94.00 87.00 81.00 $800 ______100.90 93.00 87.00 80.00 73.00 66.10 59.10 52.10 45.20 $760_ ------114.80 1u7. 90 51.20 $840.. ______120.90 113.90 106.90 100.00 93.00 86.00 79.10 72.10 65.10 58.20 $800 __ ------92.00 85.10 78.10 71.10 134.20 57.20 $840.------$880.------126. 90 119.90 112.90 106.00 99.00 $880 ______$920 ______132.00 125.90 119.00 112.00 105.00 98.10 91.10 84.10 77.20 70.20 63.20 90.20 83.20 76.20 69.30 $960 __ ------138.00 132.00 125.00 118.00 111.10 104.10 97,10 $920_ ------117.10 110.10 103.10 96.20 89.20 82.20 75.30 $960.------$1,000_ ------144.90 138.00 131.00 124.00 15 percent of the excess over $1,000 plus 78.30 $1,000 and over------147. 90 1 141.00 1 134. oo 1 127.00 1 120.10 1 113.10 1 106.10 1 ~9. 20 1 92.20 1 85.20 1 2772 CONGRESSIONAL RECORD_.:._HOUSE MARCH 27 "If the pay-roll per iod with respect to an employee is a daily pay-roll period or a miscellaneous pay-roll period- And the wages divided by the num- And the number of withholding exemptions claimed is- ber of d~ys in sueh period are- 0 1 2 3 4 6 II 6 ? 8 9 110 or more At least But less than l I I I I I I I The amount of tax to be withheld shall be the following amount multiplied by the number of days ip such period- $0 .••••••••••••••• $1.50.------· 12% ofwages $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $1.50_------$1. 75.------· $0. 20 0 0 0 0 0 0 0 0 0 0 $1. 75.------$2.00 .. ------. 20 .05 0 0 0 0 0 0 0 0 0 $?.00_------$2.25 _------.25 .05 0 0 0 0 0 0 0 0 0 $2.2,5 _------$2.50_------.30 .10 0 0 0 0 0 0 0 0 0 $2.50_------$2.75_------. 30 .15 0 0 0 0 0 0 0 0 (j $2.75_------$3.00_------. . 35 . 15 0 0 0 0 0 0 0 0 0 $3.00_------$3.25_------.40 . 20 0 0 0 0 0 0 0 0 0 $3.25 _------$3.50.------.40 . 20 .05 0 0 0 0 0 0 0 0 $3.50 _------$3.75. ------. 45 . 25 .05 0 0 0 0 0 0 0 0 $3. 75_------$4.00_------. 50 .30 .10 0 0 0 0 0 0 0 Q $4.00_------$4.25 _------. 55 .30 . 15 0 0 0 0 0 0 0 0 $4.25_ -·------$4.50_ ------·- .60 . 35 .15 0 0 0 0 0 0 0 0 .$ 4.50_-4.75 ______------$4. 75_------. 65 . 35 .20 0 0 0 0 0 0 0 0 $5.00_------.65 .40 .20 .05 0 0 0 0 0 0 0 $5.00.------$5.25 _------. 70 .45 .25 .05 0 0 0 0 0 0 0 $5.,25.------$5.50_------·--- . 75 .50 . 30 .10 0 0 0 0 0 0 0 $5.50. ------·-- $5. 75_. ----·-· ··-- . 75 .55 .30 .15 0 0 0 0 0 0 0 $5.75_------$6.00.------. 80 .60 . 35 .15 0 0 0 0 0 0 0 $6.00. ------$6.25_------. 85 . 65 . 35 .20 0 0 0 0 0 0 0 $6.25_------S6.50 _------. 90 . 65 .40 . 20 .05 0 0 0 0 ·0 0 $6.50.------$6.75_------.90 • . 70 .45 . 25 .05 0 0 0 0 0 0 $6.75_------$7.00_------. 95 . 75 . 50 .30 . 10 0 0 0 0 0 0 $7.00.------$7.25_- --~------1. 00 . 75 . 55 .30 .10 0 0 0 0 0 0 $7.25_ ------$7.50.-- ______.:_ 1. 05 .80 .60 .35 .15 0 0 0 0 0 , _ 0 $7.50_ ------$7.75_ ------·---- 1. 05 . 85 . 65 .35 . 20 0 0 0 0 () 0 $7.75_------$8.00.------1.10 .85 . 65 .40 . 20 .05 0 0 0 0 0 $8.00.------$8.25_------1.15 .90 . 70 .45 .25 .05 0 0 0 0 0 $8.25_------$8.50.------1. 20 . 95 . 75 ' .50 . 25 .10 0 0 0 0 0 $8.50.------$8 .75_------1.20 1.00 . 75 . 55 .30 .10 0 0 0 0 0 $8,75_------$9.00.------1. 25 1. 00 . 80 .60 .35 .15 0 0 0 0 0 $9.00.------$9.25_------1. 30 1. 05 . 85 .60 .35 .20 0 0 0 0 0 $9.25. ------$9.50_------1. 35 1.10 .85 . 65 . 40 .20 .05 0 0 0 0 $9.50.------$9.75 _------1. 35 1.15 . 90 . 70 .45 . 25 .05 0 0 0 0 $9.75_------$10.00. - -~------1.40 1.15 . 95 . 75 .50 .25 .10 0 0 0 0 10.00. ------$10.50.------1. 45 1. 25 1. 00 .80 . 55 .30 .15 0 0 0 0 $10.50.------$ll.OO. _------1. 55 1. 30 1.10 .85 . 65 . 40 .20 0 0 0 0 $11.00.------$11.50_------1. 60 1.40 1.15 .90 . 70 .45 .25 . 05 0 0 0 $ll.11Q_------$12.00.------1. 70 1.45 1.25 1. 00 . 75 .55 .30 .15 0 0 0 $12.00.------$12.50.------1. 75 1. 55 1.30 1.05 . 85 .65 .40 .20 0 0 0 $12.50.------$13 .00.------1.85 1. 60 1.40 1.15 .90 . 70 .45 . 25 .05 0 0 $13.00.------$13.50.------1. 90 1. 70 1. 45 1. 20 1. 00 . 75 . 55 . 30 .15 0 0 $13.50.------$14.00.------2. 00 1. 75 1. 55 1. 30 1. 05 . 85 . 65 .35 .20 0 0 $14.00.------$14.50.------2. 05 1. 85 1. 60 1.35 1.15 .90 . 70 .45 .25 . 05 0 $14.50.------$15.00 . ------2.. 15 1. 90 1. 70 1. 45 1.20 1.00 . 75 . 55 .30 .15 0 $15.00.------$15.50.------2. 20 2.00 1. 75 1. 50 1.30 1. 05 .85 .65 .35 .20 0 $15.50.------$16.00_------2. 30 2.05 1. 85 1. 60 1. 35 1.15 .90 . 70 . 45 . 25 .05 $16.50.- ____ : _____ 2.35 2.15 1. 90 1. 65 1.45 1. 20 1.00 . 75 . 55 .30 .10 $16.00.------$17.00. - ______: _ $16.50.------2. 45 2.20 2.00 1. 75 1.50 1.30 1.05 . 85 .65 . 35' .20 $17.00.------$17.50. ------2. 50 2.30 2. 05 1.80 1. 60 1. 35 1.15 .90 • 70 .45 .25 $17.50_------$18.00.------2. 60 2. 35 2. 15 1.90 1. 65 1. 45 1.20 1.00 . 75 . 55 .30 $18.00.------$18.50.------"- 2. 65 2.45 2. 20 2.00 1. 75 1. 50 1.30 1.05 . 85 .60 .35 $18.50.------$19.00.------2. 75 2. 50 2. 30 2. 05 1.80 1.60 1.35 1.15 .90 . 70 .45 $19.00.------2. 80 2. 60 2.35 . 2.15 1.90 1. 65 1. 45 1. 20 1. 00 . 75 .55 2. 90 2.65 2. ~5 2.20 1.95 1. 75 1.50 1. 30 1.05 . 85 .60 $19.50.------$21.00.-=_, ______$20.00. ---- ~ ------U~:~= =~======~= 3.00 2. 75 2. 55 2. 30 2.10 1.85 1.65 1.40 1.15 . 95 . 70 $21.00.------$22.00.------3. 15 2.90 2. 70 2. 45 2. 25 2.00 1.80 1. 55 1.30 1. 10 .85 $22.00.------$23.00.------3. 30 3.05 2. 85 2.60 2.40 2.15 1. 95 1. 70 1.45 1.25 1.00 $23.00 . ------$24.00.------3. 45 3. 20 3. 00 2. 75 2. 55 2.30 2.10 1. 85 1.60 1.40 1.15 $24.00.------$25.00.------3. 60 3. 35 3.15 2.90 2. 70 2.45 2.25 2.00 1. 75 1. 55 1.30 25.00 __ ------$26.00.------3. 75 3. 50 3.30 3. 05 2. 85 2.60 2.40 2. 15 1.90 1. 70 1. 45 $26.00 _------$27.00.------3. 90 3. 70 3. 45 3. 20 3.00 2. 75 2.55 2. 30 2.05 1. 85 1. 60 $27.00 . ------$28.00_------4.05 3.85 3. 60 3. 35 3.15 2. 90 2. 70 2. 45 2.20 2.00 1. 75 $28.00 . ------$29.00 . ------4.20 4.00 3. 75 3. 50 3.30 3.05 2.85 2. .60 2.35 2. 15 1.90 $29.00 . ------$30.00.------4. 35 4.15 3. 90 3. 65 3. 45 3. 20 3.00 2. 75 2. 50 2.30 2. 05- 15 percent of the excess over $30 plus $30.00 and over ______·_ 4. 451 4. 20 3. 951 3. 75 3.Ji() I 3.30 1 3. 051 2.85 I 2. 60 1 2.351 2.15" (c· Effective date: The amendments made number of days in such taxable year prior Mr. FORAND. Reserving the right to by this section shall be applicable only .with to January 1, 1947, bears to the total number object, Mr. Chairman, it may be all respect to wages paid on or after June 1, of days in such taxable year, plus right to dispense with the reading of it, 1947. "(2) that portion of a tentative tax, com puted as if the law applicable to taxable but I would like to have a full explana SEC. 6. Fiscal-Year Taxpayers. years beginning on January 1, 1947, were tion of the Martin amendment. (a) Income taxes: Section 108 of the In applicable to such taxable year, which the The CHAIRMAN. Is there objection ternal Revenue Code is hereby amended by number of days in such taxabl'e year after to the request of the gentleman from striking out "(d)" at the beginning of sub December 31, 1946, bears to the total num Minnesota? section (d) and inserting in lieu thereof ber of days tn such taxable year." " (e) ," and by inserting after subsection (c) Mr. FORAND. I object, Mr. Chair the following: · Mr. KNUTSON (interrupting the read man. "(d) Taxable years of individuals begin ing of the committee amendment). Mr. Mr. KNUTSON. If the gentleman is ning in 1946 and ending in . 1947: In the Chairman, there has been a general un going to object, we will have to read the case of 'a taxable year of an individual be derstanding that we would vote at 2 bill, and he will have to take the re ginning in 1946 and ending in 1947, the tax o'clock, for the convenience of a great sponsibility. iJ;llposed by sections 11, 12, and 400 shaH be many Members who have expressed the Mr. FORAND. If the gentleman can an amount equal to the sum of- " ( 1) that portion of a tentative tax, com wish to leave for their homes this eve not give us an explanation of t:P,e puted as if the law applicable to taxable ning. I ask unanimous consent that the amendment, I will have to object. years beginning on January 1, 1946, were further reading of the amendment be Mr. HALLECK. Mr. Chairman, re applicable to such taxable year, which the dispensed with. serving the right to object, I understand 1947 CONGRESSIONAL RECORD-HOUSE 2773 lbere will be 5 minutes on the committee Mr. REED of New York. Mr. Chair this is explained fully in the committee amendment which can be used for the man, I rise in support of the committee report. explanation of the committee amend amendment. Mr. McCORMACK. Mr. Chairman, ment, and then 5 minutes against it. , What the gentleman refers to is the the gentleman's time expired, a request Mr. FORAND. I do not think you exemption? It ·is so clear in the com was made for ·an extension of time, and can explain it, but under those consid mittee report that I fail to see how there objection· was heard. erations I will withdraw my objection. can be any question about it. Mr. EBERHARTER. Mr. Chairman, The CHAIRMAN. Is there objection Mr. FORAND. · If it is so clear, I wish I rise in opposition to the amendment. to the request of the gentleman from the gentleman would explain it to those Mr. Chairman, I am opposed to the Minnesota? of us who are so dense that we cannot Martin amendment. I am opposed to There was no objection. understand it. the amendment which would grant a The CHAIRMAN. Is there anyone Mr. REED of New York. I am sorry special exemption to people who are 65 who wishes recognition in support of the for the gentleman if he cannot under years of age for no other reason than amendment? If not, the question is stand it. the fact that they are 65 years of age. on the committee amendment. ·Mr. McCORMACK. May I suggest Mr. MONRONEY. Mr. Chairman, will The committee amendment was agreed that somebody on the gentleman's side the gentleman yield? · to. make an explanation of the amendment, Mr. EBERHARTER. I am glad to Mr. FORAND. Mr. Chairman, a par- in accordance with the understanding, yield to the gentleman. liamentary inquiry. which through a misunderstanding was Mr. MONRONEY. I asked the dis The CHAIRMAN. The gen~leman not carried out? tinguished gentleman from New York will state it. Mr. KNUTSON. In short, the Martin [Mr. R.EED] to yield for a question since Mr. FORAND. Is that the explana amendment merely provides that one he was one of the proponents of that tion that was promised to · us by the cannot take more than one deduction. measure. As I understand it, any Mem gentlemen on the other side? He can take his choice of exemptions. ber of Congress over 65 years of age The CHAIRMAN. That is not a par Mr. REED. of New York. The Martin under this amendment now gets an ad liamentary inquiry. amendment is just to prevent a pyra ditional $500 exemption. Mr. FORAND. That is very nice, may miding of deductions, that is all. The . Mr. EBERHARTER. That is correct. I say to the gentleman from Indiana. I taxpayer can take his choice of exemp Mr. MONRONEY. And the average appreciate that. The Chairman did not tions. age of the Congress is virtually 65? recognize anyone to speak on the amend Mr. CURTIS. Mr. Chairman, will the Mr. EBERHARTER. The general ment. gentleman yield? public throughout the country knows the The CHAIRMAN. The Chair invited Mr. REED of New York. I yield to salaries of each Member of Congress. someone to rise, and no one rose. the gentleman from Nebraska. The salary is the same for. every one of Mr. HALLECK. I did not so under Mr. CURTIS. I do not think there is the 435 Members. But this amendment stand it, and am in good faith about any amendment that can be singled out of 1\(r. KNUTSON's gives some Members of it. Certainly, I may say to the gentle as the Martin amendment, because all the Congress a $500 exemption for no man from Rhode Island, I think the the committee amendments were adopted reason at all but that they are lucky Chair should recognize some member of as one amendment. There is a provision enough to stay in Congress until they are the committee to discuss the amendment in the bill that gives an additional per 65 years of age·. There i~ no sense in and answer any questions that may be sonal exemption of $500 to individuals any such proposal. raised about it, and certainly anyone in over 65. That was put in there to meet a Mr. Chairman, there is another very opposition to the amendment is entitled number of problems. Some people draw important complication in this amend to be recognized for 5 minutes in order retirement ben.efits and are exempt from ment. It allows an exemption for the that he may state his views in respect tax thereon. Some.people draw retire wife and the husband both of $500, pro to it. ment benefits that are taxable. Others viding each is 65 years of age and also Mr. j'ENKINS of . Ohio. Mr. Chair of our aged people draw no retirement providing that each one has an income man, if the gentleman will yield, I might at all, and they must pay taxes, and they of more than $500. Suppose the wife say that the Martin amendment is all must also pay taxes for their neighbor has an income of $499. Then, she does one amendment, and that is what we who is tax exempt. To meet that situa not get the $500 exemption. If she has have been talking about. tion and to take care of those people who an income of $501, she gets the exemp Mr. McCORMACK. Mr. Chairman, a are advanced in years, and whose oppor tion of $500. In other words, if you add point of order. tunities for continued employment and even $2 to a $499 income to bring it up The CHAIRMAN. The gentleman will new jobs are not very good, we have given over the $500 mark you get an exemption state it. this additional exemption. of $500. Thus you can reduce your tax Mr. McCORMACK. My point of order The Martin amendment says in effect $66.50 by adding $2 additional income. is that the amendment has apparently that if they avail themselves of this ad Mr. DINGELL. That is, on each $500. been adopted and, as I see it, there has ditional $500 exemption they cannot take Mr. EBERHARTER. The Bureau of to be unanimous consent to have the any special exemption which is provided Internal Revenue is going to be faced action vacated in order that further pro in certain retirement laws. For instance, with a new problem-the problem of ceedings may be had. railroad retirement benefits are exempt these people who may overstate their in The CHAIRMAN. The gentleman is from taxation. We require the individual come so as to get the benefit of this $500 correct. The amendment was agreed to. over 65 who is drawing those benefits to exemption. Goodness knows the Bureau Mr. McCORMACK. Mr. Chairman, I choose between that particular benefit of Internal Revenue has plenty of prob ask unanimous consent that the pro and this $500 benefit. He cannot have lems with people understating their re ceedings by which the amendment was both. The essence of the Martin amend turns, but with this amendment there adopted be vacated so that we can go ment is that he is not entitled to both. will be thousands upon thousands of along in an orderly way. The CHAIRMAN. The time of the people who can overstate their returns The CHAIRMAN. Is there objection gentleman from New York has expired. by a few dollars-perhaps $50 or $100 or to the request of the gentleman fro:m Mr. MONRONEY. Mr. Chairman, I $10 or $1-and thereby gain an additional Massachusetts? ask unanimous consent that the gentle reduction in the tax of $66.50. There was no objection. man's time be extended 5 minutes so some I want to bring that to the attention The CHAIRMAN. The Chair will of us can ask a question or two on this of the Members ·of the House so that again invite anyone who desires to do so important amendment. they will know how deeply the majority to speak on the committee amendment. Mr. HALLECK. I object, Mr. Chair committee members went into this ques Mr. FORAND. Mr. Chairman, I still man. tion after they got their instructions request that explanation that is going Mr. REED of New York. I will say to from the caucus which was held by the to come from the other side. If they do the gentleman that the reason I was ab Republican Party. Many of the gentle not explain it we will have to assume solutely astonished that the question men of the majority will hope that the that they do not understand it them should come from such a highly intelli next time they are called together in a selves. gent source as it did was the fact that caucus they will not be bound by the 2774 CONGRESSIO-NAL RECORD-HOUSE MARCH 27 Republican leaders tO vote for any meas The sPEAKER. Obviously, that can~ Rooney Spence Whee.fer Saba:th Stanley ·\Vbltten ure until it is prope1~ly explained to them not be done at this time. - The bin wm Sadowski Stigler Whitting.ton and. until -it has been debated on the have to be laid aside temporarily until Sasscer Teague wrnrams floor of the House so that they can kriow it can be engrossed. We )lope-to have it Sheppard Thomas, Tex. Wilson, Tex. before 6 o'clock. ' · ·~ Sikes Thomason Winstead something about -it. Smathers Trimble WoOd Mr. FORAND. Mr. Chairman, will the Mr. MARCANTONIO. Mr. Speaker, Smith, Va. Walter Worley gentleman ·yield? in view of the situatiQn with respect to Somers West .Zimmerman Mr. EBERHARTER. I.. yield, some of the Members who wish to get NAYs-:-237 Mr. FORAND: Is it not a fact that home, I withdraw my request. Allen, Calif. Graham Muhlenbe-rg when this amendment was brought up The ·bill was read ·the third time. Allen, Ill. Grant, Ind. Murray, WJ..~. in committee the legislative counsel in The SPEAKER. The question is up Anderson, Calif. Griffiths Nixon Andresen, Gross Nodal' formed the chairman-that was on a on the passage of .the biU. August H. Gw:tnn.N. Y . Norblad Friday-that they could not possibly get Mr. DOUGHTON. Mr. Speaker, I of- Andrews. N. Y. Gwynne, Iowa Norman this amendment because it was so com fer a motion to recommit. _ Ange.Jl Hagen O'Hara Arends Bale Owens pJicated? The SPEAKER. Is the gentleman op ArnOld Hall. Passman. Mr. EBERHARTER. Tb:at is abso posed to the bill? · Aucbincloss E!lwin Arthur Patterson lutely correct. The amendment was not Mr-. DOUGHTON. I certainly am. Bakewell Hall, Philbin drawn in .proper form. Banta Leonard W. Phlllll)l;, calif. The SPEAKER. The gentleman qual Bates; Mass. Halleck Phillips. Tenn. Mr. FORAND. We did not even see it. ifies. Beall Band Ploefer Mr. EBERHARTER. The amendment The Clerk read as follows: Bande:t: Harness, Ind. P lu."'Illey was not drawn in proper form at the Bennett, Mich. Hartley Potts Mr. DouGltTON moves to recommit the bill Benuett, Mo.· Herter Poulson time it was voted into the bill, and the H. R .. 1 to :the. Committee on Ways and Means ~bop · Heselton :&a,mey suggestion was made that we could meet for further study, with insti·uctions not to Blackney Hess Reed, DI. again and consider it. But, of. course, report a tax-reduction bill untii the Oongreis Beggs, Del. HiU Reed, N . Y. Bolton Hinshaw Bees they were in a hurry- and their plans has passed tbe several appropriation bills Boykin Hoeven Beeves · were already made. and to consider individual income-tax re Bradley, Calif. Hoffman Rich The CHAIRMAN. The question is on duction as a part. of our over-all pcstwar tax Brambiett Holmes Riehirean the committee amendment. program, and providing for mor~ equitable Brehm Hnpe Rizley relief in the lower income braekets. Brophy B?rnn Robertson Mr. CURTIS. Mr. Chairman, a par Brown. Ohio Huwell Robsion liamentary inquiry. The SPEAKER. Without objection, Buck Jackson, Caut. Rockwell The CHAIRMAN. The gentleman Buffett Javits Rogers, Mass. the previous question is ordered. Burke JeniEon Rohrbough will state it. There was no objection. Busbey Jenkins, Ohio Ross Mr. CURTIS. .Is it not true that the The previous question was ordered. Butler Jenkins, Pa. RU&ell committee amendment includes the Byrnes, Wis. Jennings Sadlak T"ae SPEAKER. The question is on Can1leld · Jensen St. George amendment for an additional reduction the motion to recommit. Carson Johnson, Calif. Banborn c. of 30 percent in the income bracket of Mr. DOUGHTON. Mr. Speaker, on case-. N.J. Jobn.son, lll. Sarbacher $1,000 surtax? case, S.Dak. . Jobn5on, Ind. Schwabe, Mo. that I .ask for ·the yeas .arid nays. Chadwick Jones. Ohio Schwabe, Okla. The CHAIRMAN. The gentleman The yeas and nays were ordered. Chenoweth Jones. Was-h. Scoblick does not propound a parliamentary in The question was taken; and there Cbiperfie~d Jonkman Scott, Hardie quiry. Church .Judd . Sc<:>tt·. · were-yeas 172, nays 237, not voting 23, Clason Kean Hugh D .• Jr. The question is on the committee as follows: · Clevenger Kearney &:rivner amendment. [Roll No. 29 j Clippinger Kearns Seeiy-Brown Coftin Keating Sb:afer · The question was taken; and on a di Y.EAS-:--172 vision (demanded by Mr. HALLECK and Ccle, Kans. Keefe Short Abernethy Elliott Lea Cole, Mo. Kersten, Wis. Simpson, Dl. Mr. _EBERHARTER) there were-ayes 196, Albert Engel, Mich. Le.&nski Cole, N.Y. . Kilhm·n Sm1th. Kans. noes 133. AUen,La. Engle, Calif". Lucas COrbett Knutson Smith, Maine So the amendment was agreed to. Almond Evins Lusk Cotton Kunkel Smith, Ohio Andersen, Palion Lyle Coudert Landis Smith. Wis. The CHAIRMAN. Under the rule, the · H. Carl F.ernandez Lynch Crawford Larcade Snyder Committee will rise. · Andrews, Ala. Pfsher M.cCormack Crow Latham Springer Accordingly the Committee rose; an"d Barden Flannagan McMillan, S. C. cunningham LeC=>mpte Stef&D the Speaker having resumed the chair, Bates, Ky. Fogarty Madden Curtis LeFevre Stevenson Battle Fo~ger Mahon Dague Lemke Stockman Mr. CASE of South Dakota, Chairman of Beckworth Forand Manasco Dawson, Utah Lewis stratton the Committee of the Whole House on Bell ' Gary Mansfield, Devitt Lodge SUndstrom Blatnik Gathings MDnt. D'Ewart Love Taber the State of the Uriion, reported that Bloom Gordon Mansfield,. Tex. Dirksen McConnell Taile that Committee having had under con-· Bogg-s, La. Gore M!trcantonio Dolliver J.l.lcCowen Taylor sideration the bill '- 1947 CONGRESSIONAL RECORD--HOUSE 2775 The Clerk announced the following Reeves Scrivner Tollefson GENERAL LEAVE TO REVISE AND EXTEND Rich Seely-Brown Towe REMARKS ' pairs: Riehlman Shafer Twyman On this vote: Rizley Short Vail Mr. COOPER. Mr. Speaker, I ask Robertson Simpson, Ill. VanZandt Mr. Feighan for, with Mr. Simpson of Penn- Robsion Smith, Kans. Vorys unanimous consent that all Members sylvania against. Rockwell Smith, Maine Vursell may have five legislative days within Mr. Vinson for, with Mr. Gerlach against. Rogers, Fla. Smith, Ohio Wadsworth which to extend their own remarks on Mr. Keogh for, with Mr. Barrett against. Rogers, Mass. Smith, Wis. Weichel the bill just passed by the House. Mr. Delaney for, with Mr. Fuller against. Rohrbough Snyder Welch The SPEAKER. Is-there objection to Mr. Bland for, with Mr. Bradley of Mich- Ross Springer West Russell ·Stefan Whittington the request Of the gentleman from igan against. Sadlak Stevenson Wigglesworth . Tennessee? Mr: Hull for, with Mr. Morton against. St. George Stockman Wilson, Ind. Sanborn Stratton Wilson, Tex. There was no objection. The result of the vote was announced Sarbacher Sundstrom Wolcott FURTHER MESSAGE FROM THE SENATE as above recorded. Schwabe, Mo. Taber Wolverton A motion to reconsider was laid on Schwabe, Okla. Talle Wood A further message from the Senate by Scoblick Taylor Woodruff Mr. Carrell, one of its clerks, announced the table. Scott, Hardie Thomas, N.J. Youngblood The SPEAKER. The question is on Scott, Thomas, Tex. that the Senate had passed bills of the the passage of the bill. Hugh D., Jr. Tibbott followi'ng titles, in Which the concurrence Mr. KNUTSON. On that, Mr. Speak NAY8-137 of the House is requested: ' er, I ask for the yeas and nays. Abernethy Folger Mills S. 931. An act to extend certain powers of Albert · Forand Monroney the President under title III of the Second The yeas and nays were ord~red. Almond Gary Morgan War Powers Act. The question was taken; and there Andersen, Gordon Morris. were-yeas 273, nays 137, not voting 22, H. Carl Gore Murdock DEFICIENCY APPROPRIATIONS BILL Andrews, Ala. Gorski Murray, Tenn. as follows: · Barden Gossett Norton Mi. TABER. Mr. Speaker, I ask [Roll No. 30] Bates, Ky. Granger O'Brien unanimous consent that the Committee Battle Grant, Ala. Pace YEA8-273 _. on Appropriations may have· until mid Beckworth Gregory Patman night tomorrow night to file a report on Allen, Calif. Ellis Keefe Bell Hardy Peden Allen, Ill. Ellsworth Kersten, Wis. Blatnik Harless, Ariz. Pfeifer the deficiency bill. , Allen, La. Elsaesser Kilburn Bloom Harris Pickett Mr. MAHON. Mr. Speaker, I reserve Anderson, Calif. Elston Knutson Boggs, La. Harrison Poage all points of order on the bill: Andresen, Engle, Calif. Kunkel Bonner Havenner !'owell August H. Fallon . Landis Brown, Ga. Hays Price, Til. The SPEAKER. Is there objection to Andrews, N.Y. Fellows Larcade Bryson Heffernan Priest the request of the gentleman from Angell Fenton Latham Buchanan Hobbs Rabin New York? - Arends Fisher Lea Buckley Holifield Rains Arnold Fletcher LeCompte Buffett - Huber Rayburn There was no objection. Auchincloss Foote LeFevre Burleson Jackson, Wash. Rayfiel EXTENSION .OF REMARKS Bakewell Fulton Lemke Byrne, N.Y. Jarman Richards Banta Gallagher Lewis Camp Johnson, Okla. Riley Mr. REED of New York asked and was Bates, Mass. Gamble Lodge Carroll Jones, Ala. Rooney given permission to extend his remarks Beall Gathings Love Celler Jones, N.C. Sabath Bender Gavin Lucas Chapman Karsten, Mo. Sadowski and include a report by Mr. Mellon, Sec Bennett, Mich. Gearhart McConnell Chelf Kee S!tsscer retary of the Treasury in the year 1925. Bennett, Mo. Gifford McCowen Clark Kefauver Sh,.eppard Mr. SMITH of Wisconsin asked and Bishop Gillette McDonotlgh Clements Kelley Sikes Blackney Gillie McDowell Colmer Kerr Smathers was given permission to extend his re Boggs, Del. Goff McGarvey Combs King Smith, Va. marks ·in the RECORD and include. an Bolton Goodwin McGregor Cooley Kirwan Somers editorial. Boykin Graham McMahon Cooper Klein Spence Bradley, Calif. Grant, Ind. McM1llan, S.C. ·courtney· Lane Stanley Mr. GEARHART asked and was given Bramblett · Griffiths McMillen, Ill. Cravens Lanham Stigler permission to extend the remarks he Brehm Gross MacKinnon Crosser Lesinski Teague made in Committee of the Whole and Brooks Gwinn, N.Y. Macy Deane Lusk Thomason Brophy Gwynne, Iowa Maloney Dingell Lyle Trimble include a statement. Brown, Ohio Hagen Mansfield, Tex. Doughton Lynch Walter Mr. SMITH of- Ohio asked and was Buck Hale Martin, Iowa Drewry McCormack Wheeler given permission to extend his remarks Burke Hall, Mason Durham Madden Whitten Busbey Edwin Arthur Mathews Eberharter Mahon Williams in the RECORD and include certain cor Butler Hall, Meade, Ky. Engel, Mich. Manasco Winstead respondence with the Secretary of the Byrnes, Wis. Leonard W .. Meade, Md. Evins Mansfield, Worley Treasury. Canfield Halleck Merrow Fernandez Mont. Zimmerman Carson Hand Meyer Flannagan Marcantonio Mr. MERROW a_sked and was given case, N. J. Harness, Ind. Michener Fogarty M1ller, Calif. permission to extend his remarks in the Case, S.Dak. Hart Miller, Conn. NOT VOTING-22 Chadwick Hartley Miller, Md. RECORD in two instances and include an Chenoweth Hebert Miller, Nebr. Barrett Douglas Kilday editorial from the Concord Monitor and Chiperfield Hedrick Mitchell Bland Feighan Morton the Washington Post. Church Hendricks Morrison Bradley, Mich. Fuller O'Konski Clason Herter Muhlenberg Bulwinkle Gerlach Rivers Mr. VANZANDT asked and was given Clevenger Heselton Mundt Cannon Hull Simpson, Pa. permission to extend his remarks in the Clippinger Hess Murray, Wis. - Davis, Tenn. Johnson, Tex. Vinson RECORD concerning organized veterans' Coffin Hill Nixon Dawson, Ill. Kennedy Cole, Kans. Hinshaw Nodar Delaney Keogh opposition to the combining of the Army Cole, Mo. Hoev~n Norblad and Navy. Cole, N.Y. Hoffman Norman So the bill was passed. Mr. JUDD asked and was given per corbett Holmes Norrell The Clerk announced the following Cotton Hope O'Hara pairs: mission to extend his remarks in the Coudert Horan O'Toole On this vote : RECORD in two instances and in one to Cox Howell · Owens include ~n editorial and in the other Crawford Jackson, Calif. Passman Mr. Simpson of Pennsylvania for, with Mr. Crow Javits Patterson Feighan against. an article. Cunningham Jenison Peterson. Mr. Gerlach for, with Mr. Vinson against. Mr. RICH asked and was given per Curtis Jenkins, Ohio Philbin . Dague Jenkins, Pa. Phillips, Calif. Mr. Barrett for, with Mr. Keogh against. mission to extend his remarks in the D'Alesandro Jennings Phillips, Tenn. Mr. Fuller for, with Mr. Delaney against. RECORD and include a letter from Mr. Davis, Ga. Jensen Ploeser Mr. Bradley of Michigan for, with Mr. Carl H. Wilkin, economic analyst to Dawson, Utah Johnson, Calif. Plumley Bland against. William S. Hill, with reference to wool. Devitt Johnson, Til. Potts Mr. Morton for, with Mr. Hull against. D'Ewart Johnson, Ind. Poulson Mr. McDONOUGH asked and was given Dirksen Jones, Ohio Preston Mr. EVINS changed his vote from "yea" permission to exte::1d his remarks in the Dolllver Jones, Wash. Price, Fla. Domengeaux Jonkman Ramey to "nay." R€coRD and include a statement by the Dondero Judd Rankin The result of the vote was announced Fleet Reserve Association. Donohue Kean Redden as above recorded. Mrs. BOLTON asked and was given Dorn Kearney Reed, Ill. Eaton Kearns Reed, N.Y. A motion to reconsider was laid on the pewnission to extend her remarks in the Elliott Keating Rees table. RECORD and include three commentaries 2776 CONGRESSIONAL RECORD-HOUSE MARCH 27 on Colonel Blanchfield, the retiring head poses and the one which was reported records in the counties where they are of the Army Nurse Corps. · to the House a few days ago which I now situated. The gentleman by his Mr. MURDOCK asked and was given understood at that time was not in amendment sets up State headquarters permission to extend his remarks in the agreement with the bill that was passed in every State. Certainly the records RECORD and include a telegram received by the Senate. ought to be accessible to the veterans today. Mr. SHORT. By direction of the Com because they will probably have to refer Mr. BECKWORTH asked and was mittee on Armed Services I have several to them about matters of compensation, given permission to extend his remark~ amendments at the Clerk's desk. the date of entry into the service, and in the RECORD. . Mr. Speaker, I ask unanimous consent many other things, for they probably Mr. MADDEN asked and was given that the Clerk may read these amend have not kept individual records of this permission to extend his remarks in the ments at this time. If the gentleman exact data that would be necessary for RECORD and include an editorial. from Texas has a copy of the bill S. 918 the making out of' claims against the Mr. POWELL asked and was give·n per and follows the reading of the amend: Government. So I think it ought to be mission to extend his remarks in the ments he can note the changes. made plain that you do propose to keep RECORD and include a letter from the The SPEAKER. Is there objection to these State headquarters in the respec Methodist Federation for Social Service. the request of the gentleman. from Mis- tive States and they will all be-easily Mr. FORAND asked and was given per souri? · accessible to the veterans. They shoulrl mission to revise and extend the remarks There wa::> no objection. not be accessible to other people, like he made in Committee of the Whole and The Clerk read as follows: creditors or cw·iosity seekers. include certain tables and excerpts. On page 2, line 13, strike out the parenthe Mr. SHORT. I may say to the gen Mr. ROONEY asked and was given per sis and the small letter "a" occurring imme tleman that section 7· of the bill protects mission to extend his remarks in the diately after the figure "4" in section 4. everything of a confidential nature and RECORD and include a newspaper article. On page 2, line 15, after the word anyone who unlawfully reveals or gains OFFICE OF SELECTIVE SERVICE RECORDS "records", .strike out the period and insert access to this confidential material is the word "and." subject to a fine of $10,000 and 5 years· Mr. SHORT. Mr. Speaker, I ask unan On page 2, line 16, strike out the paren imprisonment. ' imous consent for the immediate consid thesis and the small "b" at the T:>eginning Mr. THOMASON. Can the veteran eration of the bill (S. 918) to establish of the line and change the capital "A" in the word "Authority" to a small "a." inspect his own personal record? an Office of Selective Service R3cords to Mr. SHORT. Yes; it will be accessible liquidate the Selective Service System Page 2, line 23, change the colon to a period and strike out the following proviso to him. If the gentleman will bear with following the termination of its functions in this line and 24, and 25. me a minute, I may .say that during the on March 31, 1947, and to preserve and On page 4 strike out all of subsection (2) First World War we had about 4,000,000 service the selective-service records, and through and including lines 1 through 4 on of these records to deal with and between for other purposes. page 5. the First and Second World Wars we The Clerk read the title of the bill. On page 5, in lines 5, 10, 16, and 20, change had approximately 500 employed by the The SPEAKER. Is there objectio1;1 to the subsections from "3, 4, :i, Pnd 6" to "2, 3, 4, ·and 5" respectively. Government to service these records. the present consideration of the bill? Of course, in the last war we have over Mr. · THOMASON. Mr. Speaker, re On page 5, line 17, after the word "em ployees", insert a parenthesis and the words 15,000,000, and we propose to have 1,200 serving the right to object, will the gen "not to exceed 1,200 in number by November employees under this bill. tleman from Missouri explain the present 1, 1947", and insert a parenthesis after Mr. THOMASON. You are setting up status of this bill and explain its pro "1947." a Federal director here in Washington. I visions. On page 5, line 19, after the word would like to know what his jurisdiction Mr. SHORT. Mr. Speaker, under ex "amended", change the semicolon to a colon will be and also what the jurisdiction and isting law the Selective Service System and insert the words "Provided, That the authority of the State directors will be automatically expires next Monday at compensation of such persons shall not be in who are going to be the custodians of midnight, March 31, 1947. As far as I excess of that provided in said act." Page 7, line 7, following the word "section", these records. am concerned, I am perfectly willing for add a comma and insert the following: "or Mr. ANDREWS of New York. If the it to breathe its last. But it is neces any person or persons who shall unlawfully gentleman from Texas bad been present sary that we maintain the records and obtain, gain access to, or use such records." at the committee meeting this morning files ·of more than 15,000,000 men and Page 7, line 19, strike out the parentheses he would know that we voted in favor of women who served in the armed forces and the enclosed small letter "a" appearing an amendment offered by the gentleman during the recent global conflict. This after the "9" in section 9. from Ohio to protect the very thing of bill simply provides for the liquidation of Beginning in line 22, page 7, strike out all which the gentleman speaks. the Selective Service System, but it estab of subparagraphs "b" and "c" in section 9 Mr. THOMASON. I am not in opposi as appearing on page~ 7 and 8. lishes an Office of Selective Service Rec tion to the bill, and I regret it was impos ords. There is a Director who receives Mr. SHORT. Mr. Speaker, if the gen sible for me to be at the· meeting of the a salary of $10,000, and he will have au tleman from Texas will yield, I might subcommittee this morning, but I think thority and power to appoint and fix state that the Selective Service System, the RECORD ought to show and the mem compensation, within certain bounds beginning this fiscal year .on July 1 last, bership ought to know what the changes which our committee wrote into the bill had about 12,000 employees. That num are. I am .going to ask the gentleman this morning, to transfer those records ber has been reduced to 7,500 at the from Missouri to explain them. from the local county boards or similar present time and under the provisions of Mr. SHORT. I trie:i to explain them. political subdivisions to a central State this act it is to be further reduced to 5,000 Mr. THOMASON. · I am satisfied. headquarters. He must liquidate the by June 1, and by November 1 of this Mr. ANDREWS of New York. The De Selective Service System as rapidly fol year there will be not more than 1,200. partment of Justice, the Veterans' Bu lowing March 31 of this year as possible Mr. THOMASON. Mr. Speaker, I will reau, and· aay governmental agencies and not later than March 31, 1948. say in reply to the gentleman from Mis that enter into the picture under certain Mr. THOMASON. Mr. Speaker, will souri that I find myself very much in conditions have the right to see these the gentleman yield? · accord with the statement the gentleman records. It was that very thing that led Mr. SHORT. I yield. has just made. These, of course, are to the amendment to protect the rights Mr. THOMASON. As I understand, a very valuable records and we are all in of the veteran in connection with reem subcommittee of the Committee on the terested in their preservation, but I be ployment or in connection with the serv Armed Services met this morning and lieve the membership will appreciate it ice records of veterans in connection with now brings in different provisions than if the gentleman from Missouri will ex State bonuses or anything in that cate those contained in the bill reported a plain what persons would have access to gory. few days ago. • these records, and, further, if veterans Mr. THOMASON. I think the RECORD Mr. SHORT. Yes. will find them easily accessible if they should show what these changes are. Mr. THOMASON. I would appreciate are sent to State headquarters in the Mr. SHORT. Most of these State it, as I am sure would the other Mem respective States. headquarters will be, I presume, at the bers present, if the gentleman from Mis As I understand it, the bill that was State capital; however, in Florida, for souri would explain the bill he now ·pro- proposed b~ the other body left these example, the records wil~ be kept at .St. 1947 CONGRESSIONAL RECORD--HOUSE 2777 Augustine, which has always been the Mr. SHORT. I said then on the :floor, transportation cost is around two or seat of the State military-government. and I certainly said in committee at that three millior1 dollars. In Delaware they will perhaps be kept in time, that if we extend it until March 31, Mr. ANDREWS of New York. Mr. the vault of the fort over there instead 1947, they will be back here asking for Speaker, if the gentleman will yield, I of the State capital. another extension, and that is what they · would like to say that ~ the cost of this Mr. BROOKS. When will we be able are doing. transportation, the moving of typewrit to get rid of these 1,200 employees that Mr. MILLER of Nebraska. And now ers, desks, chairs, and so forth, will be it is proposed to use to liquidate these we are really setting up another com about $11,000,000. records? mittee to supervise the liquidation of Mr. SHORT. There is $5,000,000 of Mr. SHORT. No one can say. That selective service. . equipment, chairs, desks, typewriters, and is one of the portions I objected to. Our Mr. SHORT. That is right; liquidate the like which, under this act, the Di experience in the last war was that the the liquidator. rector can turn over to the National records were not destroyed until 1941. Mr. MILLER of Nebraska. I think Guard or the Organized Reserve or per Mr. BROOKS. May I ask the gentle the gentleman said they did limit the haps even give some to the county man, and I know .he can explain the sit number not. to exceed 1,200 in employ governments. uation, why do we have to maintain and ment. Mr. DURHAM. I withdraw my reser service these records over a long period Mr. SHORT. By November 1, this vation of objection, Mr. Speaker. of time? year, not ~ore than 1,200 employees, Mr. ROBSION. Reserving the right Mr. SHORT. We have not yet reached and we also set a limit on the compen to object, Mr. Speaker, there are about the peak of inquiry from veterans. The sation or wages of these employees, an 15,000,000 of these records? Department of Justice work will be· less amendment offered by the gentleman Mr. SHORT. Yes. and less all the time because there are from Virginia [Mr. DURHAM]. Mr. ANDREWS of New York. There fewer prosecutions. The Veterans' Ad Mr. MILLER of Nebraska. The bill of are 44,000,000 records, but 15,000,000 of ministration, however, finds that its work 2 days ago, to which I objected, set the them refer to those who actually served. is increasing and will increase for the cost in the counties for the handling of Mr. ROBSION. Twenty million dol next 4 or 5 years. After that you will these records. Now they are trans lars sounds like a large sum of money, naturally have a rather gradual to steep ferred to a central office? but if it is to take care of these 15,000,- decline. Mr. SHORT. That is right. 000 records that apply to those who ac Mr. BROOKS. I am not going to ob Mr. MILLER of Nebraska. As to the tually served, it is a cost of $1.33 per ject to the bill. matter of the authority of the Director record. I think there ought to be a cen Mr. SHORT. I would not care par of this service, is he somewhat circum tral place where the records can be pre ticularly if the gentleman did. scribed in his ability to issue rules and served. They might be well preserved in Mr. BROOKS. I want to see it enacted regulations or does this give him a wide some counti.es, but in many counties they as quickly as possible, just as the gentle open field here in the original bill? would soon be scattered. man does. May I ask the gentleman Mr. SHORT. He has got pretty broad Mr. FOLGER. Reserving the right to this: The Senate report indicates it will authority. He necessarily must have object, Mr. Speaker, may I ask the gen cost $20,000,000? pretty broad authority, but there are tleman from Missouri if this bill goes Mr. SHORT. For the next year. certain limitations. any further than to preserve the records Mr. BROOKS. To get this out of the Mr. MILLER of Nebraska. Does the already made, or does it in truth ~xtend way. During this time we are not draf.t gentleman feel that this bill we are re the selective-service law? ing a single man. What does the gentle porting now is a better bill than we had Mr. SHORT. No. I had that impres man think of the cost of storing these a few days ago? sion myself, I may say to the gentleman, records? Mr. SHORT. I think it is an infinitely and I did not want to vote for any meas Mr. SHORT. I think it is next to un better bill, and I want to congratulate ure that would extend it. I think this pardonable. I think it is terrible, but the gentleman from Nebraska for hav really closes it. It is to fold up and to what are you going to do about it? We ing objected to its consideration when preserve these records and get them in have already obligated $11,000,000 to dis it was first brought in. shape. pose of these records. Mr. MILLER of Nebraska. Well, with Mr. FOLGER. Is the gentleman now Mr. BROOKS. There are not a great that compliment, I withdraw my reser satisfied that that is the case? many of them, are there? vation of objection. Mr. SHORT. I am. They have to do Mr. SHORT. You are going to spend Mr. DURHAM. Mr. Speaker, further it not later than March 31 of next year, $5,000,000 to give these people leave after reserving the right to object, certainly but the bill says as quickly as possible. discharge if we start folding up next the gentleman from Missouri feels it is Mr. FOLGER. It does not extend the Monday. But that was aU done under necessary to do something. He made the selective-service power beyond that the New Deal. That was before we got statement that we would be coming in time? control of the House. here with a piece of legislation which Mr. SHORT. No. The act expires on Mr. MILLER of Nebraska. Mr. Speak would continue the operation of the Se midnight next Monday. er, reserving the right to object, a few lective Service System. We have to do Mr. FOLGER. I withdraw my reserva days ago I objected to the considera tion of objection, Mr. Speaker. tion of this bill, feeling there were some something with these records. Of course, things in it not clear to the· member I feel we are making a mistake by trans The SPEAKER. Is there objection to ship as the bill came over from the other ferring these records to a central division. the present consideration of the bill? ·body, and I would like to have the gen I think they ought to be left in the coun There was no objection. tleman from Missouri explain a few ties where they can be used, and used The Clerk read the bill, as follows: things now in the bill. I think it is a more conveniently. Most of the State Be it enacted, etc., That there is hereby much better bill than when it came over capitals at the present time, and the big established an Office of Selective Service to us. I was over to cities, are crowded with people, and there Records, to be headed by a Director who shall the hearing this will be no place to keep them, and it is be appointed by the President, by and with morning when the Armed Services Com the advice and consent of the Senate, and mittee was meeting, and I heard General going to be very difficult to find storage space in fireproof buildings. At the pres shall receive compensation at the rate of Hershey's remarks relative to the bill. $10,000 per year. I would like to ask the gentleman from ent time most of them_ are safe. SEc. 2. The functions, duties, and respon Missouri this: This really extends selec Mr. SHORT. They do not necessarily sibilities of the Office of Selective Service tive service until March 1948; is that cor have to go to the State capital. They are Records shall be (a) to liquidate the Selec rect? to go to a central record depot. tive Service System, which liquidation shall Mr. SHORT. It cannot go beyond that. Mr. DURHAM. But you will have to be completed as rapidly as possible after move all your personnel, and we are go March 31, 1947, but in any event not later It is to liquidate as quickly as possible than March 31, 1948, except as herein pro following next Monday. ing to have to move the records, too, of vided; (b) to preserve and service the rec Mr. MILLER of Nebrasl!;a. Of course, course, which would require space. ords of Selective Service; and (c) to perform many of us thought a year ago, when . Mr. SHORT. . Sure, you would have tQ such other duties relating to the preserva we extended it to March ·31, it· was really spend a lot of money even if you burned tion of records, knowledge, ~;~.nd methods of going to end then. them or destroyed them. I believe-the- Se-lective Service; not· inconsis.tent. with law. 2778 CONGRESSIONAL RECORD-HOUSE MARCH 27 SEc. 3. The unexpended balances of funds States, and to maintain such other offices as Page 2, line 16, strike the parentheseJ and available to the Selective Service System are may be necessary for. the purposes of this the small "b" at the beginning of the line, hereby made available to the Office of Selec act; and change the capital "A" in the word "Au tive Service Records for the purposes of this (4) to utilize the agencies of the Federal thority" to a small "a." act and such additional appropriationS as Government with the consent of the heads Page 2, line 23, change the colon to a pe are necessary therefor are hereby authorized. thereof, and to accept the services of all riod and strike out the following pn-ovi\So in SEc. 4. (a) All property, records, and per oftlcers and agents of the several States, the this line and lines 24 and 25. sonnel of the Selective Service System are District of Columbia, Territories, and pos Page 4, strike out all of subse6tion (2) hereby transferred to the Office of Selective sessions of the United States, and subdivi through and including lines 1 through 4 on Service Records. sions thereof, in the execution of this act; page 5; (b) Authority is hereby granted to the (5). to appoint and fix the compensation Page 5. • lines 5, 10, 16, and 20, change the Director of the Office of Selective Service of such oftlcers and employees, as may be subsection numbers "3, 4, 5, 6" to "2, 3, 4, 5," Records to transfer, without reimbursement, necessary for the purposes of this act, with respectively. and with the approval of the War Assets or without regard to the Classification Act Page 5, line 17, after the word ·'emplayees", Administration, to the National Guard in Of 1923, as amended; insert a parenthesis anc;t the words "not to the several States, the District of Columbia, (6) to delegate and provide for the dele exceed 1,200 in number by November 1, 1947" and Territories and possessions of the United gation of any authority vested in him under and insert a parenthesis after "1947." States, or to the Organized Reserves of the this act to such officers, agents, or persons as Page 5, line 19, after the word "amended", armed forces, surplus property of the Selec he may designate or appoint for such pur change the semicolon to a caJon and insert tive Service System: Provided, That no sur pose or as may be designated or appointed the words "Provided, That the compenl ation plus property will be so transferred by the for such purpose pursuant to such rules and of such persons shall not be in excess of that Direct or of the Office of Selective Service regulations as he may prescribe. provided in said act." Records prior to July 1, 1947. (b) In the administration of this act Page 7, line 7, following the word "sec SEc. 5. (a) Pursuant to the third sentence voluntary services may be accepted. tion" add a comma and insert the following: of section 7 of Public Law 473, approved June (c) The Chief of Finance, United States "or any person or persons who shall tmlaw 29, 1946, all functions and responsibilities of Army, is hereby designated, empowered, and fully obtain, or gain access to or use · such the Personnel Division, National Headquar directed to act as the fiscal, disbursing, and records." ters, Selective Service· System, established accounting agent of the Director of the Office Page 7, line 19, strike out the parentheses under authority of section 8 (g) of the Selec of Selective Service Records in carrying out and the enclosed small letter "a" appearing tive Training and Service Act of 1940, as the provisions of this act. after the "9" in "SEc. 9.'' c amended, together with so much of the rec (d) Any officer on the active or ·retired Beginning on line 22, page 7, strike out all ords of the Selective Service System, anci so list of the Army, Navy, Marine Corps, or of subparagraphs "b" and "c" in section 9 much of the unexpended balances of appro Coast Guard, or of any Reserve component as appearing on pages 7 and 8. · priations of the Selective Service System, as thereof, or any officer or employee of any the Director of the Bureau of the Budget department or agency of the United States The SPEAKER. The question· is on may determine to relate primarily to such who may be assigned or detailed to any office the amendments offered ·by the gentle.. functions, are hereby transferred, effective or position to carry out the prov-isions of man from Missouri. March 29, 1947, from the Selective Service this act may serve in and perform the func The amendments were agreed to. System to the Secretary of Labor. tions of such office or position without loss The bill was ordered to be read a third (b) The second sentence of section 600 (a) of or prejudice to his status as such officer of Public Law 346, approved June 22, 1944, is fn the Army; Navy, Marine Corps, or Coast time, was read the third time, and passed, hereby amended by substituting the. words Guard or Reserve component thereof, or as and a motion to reconsider was laid on "Director of the Oftlce of Selective Service such officer or employee in any department the table. Records" for the words "Director of the Na or agency of the United States. Mr. ANDREWS of New York: Mr. tional Selective Service System." SEc. 7. The Director is authorized to pre Speaker, may I say for the benefit of tbe· scribe such rules and regulations as may be (c) Section 600 (c) of Public Law 346, ap Members of the Hou~e that I am reliably proved June 22, 1944, is hereby amerided by necessary to preserve the confidential na ture of the individual confidential records informed that the Senate in all prob substituting the words "Oftlce of Selective ability will accept the House amend Service Records" for the words · ~ veterans' previously obtained under the Selective Personnel Division, National Selective Serv Training and Service Act of 1940, as ments. However, in view of the time ice System." amended. Any person charged with the duty element involved and the fact that there SEC. 6. (a) The Director is authorized- of carrying out any of the provisions of this is always a possibility that a conference ( 1) to prescribe the necessary rules and act, and who fails to carry out such provi will be necessary, I ask unanimous con regulations to carry out the provisions of this sions or who shail knowingly violate the sent that the Speaker be authorized to act ; . regulations promulgated under this section appoint three conferees and that those (2) to create and establish local record shall, upon conviction in the district court depots in the several States, the District of of the United States having jurisdiction conferees be instructed, in the event of Columbia, Territories and possessions of the thereof, be punished by imprisonment for a conference, to insist upon the House United States, and such other agencies as not more than 5 years, or a fine of not more amendments. may be necessary to carry out the provisions than $10,000, or by both such fine and im The SPEAKER. Is there objection to of this act. There shall be created one or prisonment, or if subject to military or naval -the request of the gentleman from New more local record depots in each county or law; may be tried by court martial;· and, on conviction, shall suffer such punishment as York? [After a pause.] The Chair political subdivision ~orresponding thereto of hears none, and appoints the following each State, the District of Columbia, Terri the court martial may direct. tories, and possessions· of the United States. SEC. 8. Except as provided in this act, all conferees: Messrs. SHORT, CoLE of New Each local record depot shall be under the laws and parts of laws in confl.ict with the York, and DREWRY. administration of a local board, consisting of provisions of this act are hereby suspended EXTENDING CERTAIN POWERS OF THE the members of the present Selective Sewlce to the extent of such confiict for the period in which this act shall be in force. PRESIDENT UNDER TITLE ill OF THE local boards,and shall consist of threeormore SECOND WAR POWERS ACT members. Any vacancy on such board shall SEc. 9. (a) Except as otherwise provided be filled by the Director upon recommenda by the terms of this act, the provisions Mr. MICHENER. Mr. Speaker, I ask tion of the Governors or comparable. execu hereof shall take effect at 12 o'clock post unanimous consent for the immediate tive officials: Provided, That the Director may meridian, March 81, 1947. (b) The provisions of section 6 (a) (2) of consideration of the bill undeclared deo-laration of war. That United States generally. Nine months that, they are determined upon bloody revo· policy, _if it is. pursued, will lead to war. afterward the President acted to rid the lution to accomplish their ends. "At the outer edge of this communistic There is oo other policy to oppose the State Department and other depart movement are many sincere and innocent, Truman J'lQlicy than· the wholehearted ments of Communists. but completely deceived and misled individ and fUll support of collective security and · Mr. Speakel', the action by the Presi uals, many of them high in the social scale. col1ee..tive action against aggression now dent was late, very late, but better late Some even a.re preachers; some are public provided for through the United Nations. than never. omcials; some a.re teachers; some a.re just In the past, I have vote_d for American My address delivered on April27, 1946, earnest rank and file citizens who have been participation and support to the various was as follows: persuaded and defrauded into believing that international organizations for trade·. for communism wlll mend all the ills ,and in COMMUNISM IN THE UNITED STATES justices they see around them and against financial stability, for UNRRA, and so (Extension of remarks of Hon. EoiTH NouRsE which . they instinctively rebel. forth. I refuse to vote now for a . policy RoGERS, of Massachusetts, in the House of "In this process of attempting to commu which destroys every act of intelligent Representatives, Thursday, May 2, 1946) nize this country these alie_n . ideologists good will and enlightened self-interest Mrs. RoGERS of Massachusetts. Mr. Speaker, have perfected the most remarkably clever which the American people have engaged under leave to extend my remarks in the techniques. Today communism as politics in for the past 4 years. I refuse to stab . nECORD, I include the following address de is 'big politics.' As an infiltrating group the United Nations in the back. I refuse livered by me at Boston on April 27, 1946, movement it is a 'big' movement. These to agree that the world inevitably is di before the New England Conference of Re Communists are no longer .content to m~et in vided into two armed camps which must publican Women: cellars and dives and get out smudgy, gray "From time to time I hear someone ask: printed sheets and pamphlets. They iss-..:e engage in atomic warfare. 'Well, are ·there really as many Communists well-written, well-printed, beautifully typed, - I cannot but believe that the Truman in the United States as claimed, and, if so, cleverly designed literature that would de policy has been dictated by short-sighted are they really so dangerous to our liberties ceive the very elect. l>igoted military men whose minds ar~ as they are reported to be?' . "Now, where do they get the money to do warped by their constant playing with "These questions are just as vital to our all this? war plans.- We need now those men who welfare and the welfare of our children, · and "First, they have deluded a good many can find a way to make the United Na our children's children as .the question: wealthy persons in this country who have "'Are there really atom bombs, and are provided them with millions of dollars, not tions work-who know how to build the they reaJly so dangerous and destructive as realizing what these Communists actually United Nations instead of destroying it they are reported to. be?' mean to do. Then they have received such men who can formulate policy which will "Our .Ainerican system of government, our recognition in high places that they have obtain the support of the entire world. \vhole system of economy, all we have, our become not only respectable, politically, but The best thing that President Truman liberties, our religious and political freedom actually sought after. They have insinuated can do is to recognize that a horrible mis all are wrapped up in the answer to that their henchmen into key places in govern take has been made and that the United question of whether or not there ar.e many ment. Much patronage, many favors, much Communists in the United States, and control over business is exercised by men and States Government should vote emergen whether they are so dangerous as they are cy relief for the Greek people and turn womee who have wormed their way into posts reported to be or not. of influence, power, and authority in the over the problem of Greece and the Mid "I am convinced there are many Commu- Government. dle East to the one place where it can • nists, grim, fanatical, determined, ruthless, "Then, too, since the United States of successfully be handled; namely, the cunning schemers, in the United States, and America-your America and my America-is United N_ations. I believe, further, thai they are more danger the richest prize on the face of the globe ous than most persons suppose them to be. LEAVE OF ABSENCE today, foreign schemers have sent their best "The time was-and we are still prone to brains into this country and have sent over ·· By unanimous consent, leave of ab think of Communists and the communistic funds to finance this dreadful movement to sence was granted as follows: movement in that light-when Communists wreck our American system, take over our were a furtive band of men and women who country, and reduce us to a ·condition of To Mr. LARCADE, for about 2 weeks, on were without funds, who met secretly in account of official business. slaves to a minority who will call themselves cellars or in garrets, or in dim, smoky, un the state 1f their plans succeed. To Mrs. DoUGLAS (at the ·request of clean dives and restaurants to plot fanatical "Believe me, if these statements sound in Mr. McCoRMACK)•• for today, on account and hopeless plans against the Nation. That credible, they are · nevertheless still true. of illness. time has passed, communism in the United This Communist movement in America is a To Mr. FOGARTY, from March 31 to :States today is a cleverly planned, bold, in game, the greatest history ever saw, for a solent, well-financed, skillfully managed po prize-the control of the riches, the Govern AprillO, 1947, on accmmt of official busi litical and revolutionary movement, reach ness. ment, and the people of the greatest nation ing out in every direction, sending out prop history ever saw. To Mr. MoRTON