Summit County Labor News

GOP Hedging On Fast Cut In Taxes

The chances for a tax cut soon are dim, GOP leaders now admit.

Senator Styles Bridges (R, N. H.), said the budget should be balanced before tax cuts are made and chances of a balance this year are also dim.

Senator William F. Knowland (R, Calif.) also declared the budget must be balanced before taxes can be cut, adding that he'd like to see both objectives achieved "as soon as we can without jeopardizing national defense."

Bridges will become either GOP majority leader in the 83rd Congress or head of the budget-reviewing appropriations committee. Knowland said he'd be glad to become majority leader if Bridges does not seek the job.

Rep. Joseph W. Martin (R, Mass.), slated to become Speaker of the House said Congress may cut taxes before the budget is balanced.

(In New York Dr. Jules Backman, economics professor at New York University, told an industry group the budget must be balanced before taxes are cut. And the budget cannot be balanced in the current fiscal year, he said, if income, corporation and excise taxes are cut back to the pre-1951 level. To do so would mean a drop of $8.5 billion in federal rev-
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GOP Hedging
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enue, he said. To maintain a balanced budget if taxes are allowed to lapse, government spending would have to be cut $15 billion to $20 billion, he said.

That is far more than the most optimistic GOP leader has predicted can be done.)