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...

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