The Congress: Willie's Big Whisper

When Delaware's Republican Senator John J. Williams first saw the profusion of ads in the Democratic Party's glossy, 178-page paean to the 89th Congress entitled Toward an Age of Greatness, his own reaction was that the Republic was headed toward an age of "political blackmail." Rising on the Senate floor to protest the Democrats' $1,000,000 bonanza, Williams — nicknamed "Whispering Willie" because of his barely audible speaking voice — protested:

"Space was sold to major corporations, in particular to defense contractors, at $15,000 per page. This is not normal advertising but represents a shakedown of those industries which are doing or which hope to do business with the Government."

End of the Ball. While direct campaign contributions by companies in federal elections are banned by the Corrupt Practices Act—as his fellow Senators know well—legal loopholes allow corporations to take expensive ads in political puff sheets, permit executives to donate to a political fund as "individuals." Last week the 17-member Senate Finance Committee—four of whose stalwarts are themselves up for re-election—passed a Williams-sponsored amendment to the Viet Nam tax bill aimed primarily at corporations, stipulating that their indirect political donations will no longer be even partly tax-deductible as "business expenses."

Thus the amendment seems likely to doom some of the hoariest of all political fund-raising gimmicks. No deductions would be permitted for ads in "a convention program of a political party, or in any other publication" or for "admission to any dinner or program" if any part of the net proceeds "inures to a political party or to a political candidate." Nor would write-offs be allowed for "admission to an inaugural ball, inaugural gala, or similar event identified with a political party or a political candidate."

Squared Meal? In any case, Williams has pointed out, there are no clear guidelines as to the proportion of such expenses that can legitimately be deducted. How much of a $1,000-a-plate dinner can a company discount as a business expense? According to Internal Revenue Commissioner Sheldon Cohen, said the Senator, "deductions are allowable to the extent of the value of the meal." Demanded Williams: "Does it go up for a Democratic meal and down for a Republican meal?"

The amended tax bill, which would also hike levies on new cars and telephone service and speed up tax collections, was expected to win passage this week in the Senate, after which the measure would go to the House for final approval.

In other action, Congress last week was asked by President Johnson for innovative legislation in diverse fields. His recommendations: