Down Another Billion?

Officially, the Eisenhower Administration's position on taxes was unchanged last week. George Humphrey's Treasury Department still favored the tax revisions outlined in the President's budget message (TIME, Feb. 1), was still against any further cut in tax rates this year. But un officially Treasury is now reconciled to a substantial slice in excise taxes.

House Speaker Joe Martin last fortnight hinted at what was in the works. He an nounced that he favored cutting to 10% most excise taxes now above that level, e.g., the 20% tax on theater admissions, furs, jewelry, purses, the 25% tax on long distance telephone calls, the 15% levy on fountain pens. He would leave at their present rate the federal taxes on cigarettes (8-c- a package), gasoline (2-c- a gallon), automobiles (10% of the manufacturer's price) and whisky ($10.50 a proof gallon).* Joe Martin said he did not expect the administration to propose any excise tax changes, but he hoped the White House would not oppose the plan he outlined.

Because official Washington felt that forecasts of excise tax cuts might cause a buyers' strike, Speaker Martin's statement was considered premature. Nonetheless, the Administration clearly expects Congress to pare $1 billion off the Eisenhower budget and then cut excise taxes a balancing billion along the line drawn by Martin.

* Lawmakers flinch at proposing a cut in the tax on liquor, which was the first internal tax ever imposed by the U.S. Government. Enacted in 1791 (at a minimum of 7-c- a gallon), the liquor tax caused the Whisky Rebellion of 1794, now accounts for about 45% of the retail cost of liquor.

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