THE CONGRESS: No Cheers, Yet

By a vote of 297 to 120, the House this week passed the Knutson $6.5 billion tax-cut bill. Bolstered by 63 Democratic rebels, Republicans piled up a margin large enough to override an expected presidential veto with 19 votes to spare. Democrats didn't have a chance. Just before the final vote, the House had rejected their substitute bill, which would have made up for revenue losses with a new excess-profits tax.

The Knutson bill would take 7,400,000 low-income taxpayers off the rolls entirely, by raising personal exemptions from $500 to $600. It would also: 1) apply the community-property principle to all...

Want the full story?

Subscribe Now


Get TIME the way you want it

  • One Week Digital Pass — $4.99
  • Monthly Pay-As-You-Go DIGITAL ACCESS$2.99
  • One Year ALL ACCESSJust $30!   Best Deal!
    Print Magazine + Digital Edition + Subscriber-only Content on

Learn more about the benefits of being a TIME subscriber

If you are already a subscriber sign up — registration is free!