• U.S.

National Affairs: Taxes Continued

2 minute read
TIME

Searching for increased revenues during the Korean war, Congress raised the maximum corporate income-tax rate to 52%, also boosted excise taxes on automobiles, whisky and cigarettes. Three times since then, the increases have been scheduled to die automatically unless renewed, on each occasion have been extended another year. Last week, accepting Ike’s word that all of the $3 billion brought in by the higher tax rates is already earmarked in the President’s budget, members by voice-vote overwhelmingly decided to keep them still another year, sent the measure to the Senate, where there is only feeble agitation for tax cuts to small businesses.

In other congressional action last week:

¶ House and Senate both approved a measure to increase the borrowing authority of the Federal National Mortgage Association (Fanny May) by $500 million to help ease the tight-money crisis in the home-mortgage market, sent it to the President.

¶ House Majority Leader John W. McCormack urged the House Civil Service Committee to approve a Senate-passed bill granting ex-Presidents $25,000-a-year pensions, together with office space and expenses and free mailing privileges. Argued McCormack: Congress should authorize pensions as a “matter of equity,” since public demands on a President do not cease when he leaves office.

¶ Considering legislation to aid Midwest corn farmers, the House ended a hectic two-hour session by voting down Democratic and G.O.P. proposals alike, offering no aid at all. Determined to include feed grains in the soil bank, farm-area Democrats defeated a plan to raise corn acreage limits 14 million acres, lower the support price 5¢ a bu. but require corn farmers to take soil-bank payments on some cropland. But the rural Democrats’ move to include oats, barley, rye and sorghum in the soil bank was knocked down by a coalition of Republicans and city Democrats fearful of the extra cost ($500 million to $1 billion a year).

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