TAXES: What Did He Say?

Most of the clamor for income-tax reduction was made last year by Republicans. Twice, Minnesota’s Harold Knutson, chairman of the House Ways & Means Committee, saw bills of his sponsoring reach the White House only to be vetoed by Harry Truman. At the end of the last session of Congress, he came up with a third, calling for a cut of $5.6 billion;

Last week, the first faint cheep from the Administration was heard. It was in the form of a report made by Treasury Secretary John W. Snyder to Congress. Characteristically, it was heavily laced with “buts” and made “no policy recommendations.” Nevertheless, it did talk about both a reduction in rates and an increase in personal exemptions—the two main avenues to a tax cut.

Happy GOPsters agreed that the Treasury, in spite of its equivocation, had advanced cogent arguments in favor of their bill. Whatever the Administration did, Republicans were sure to press for a tax cut. And in an election year, it would be hard for the Administration to say no.