FISCAL: Tax Bill's Progress

At first sight, the $5.3 billion tax reduction bill looked like a dainty dish, full of political sweetmeats, but many legislators found it not entirely to their taste. The House Ways & Means Committee unanimously reported in favor of the measure. But Republicans on the committee in a political addendum declared that: 1) true tax relief will not come until the Administration cuts out "wasteful and unnecessary spending"; 2) the U.S. "cannot continue to play Santa Claus to the other nations of the earth and remain solvent."

On the floor of the House, the gag rule was invoked to prevent amendments; the tax measure was served to representatives on a "take-it-or-leave-it" basis. Nevertheless, for Senate ears ranking Ways & Means Republican Harold Knutson argued for the immediate repeal of the excess-profits tax on corporations, rather than its reduction (from 85.5% to 60%). Illinois Democrat Adolph Sabath led a group who opposed any reductions in taxes on corporations.

The four-hour debate was listless, uninspired, for the record only. The House decided to depend on the upper chamber to thrash the matter out, swallowed the bill almost without chewing it, 343-to-10.