Representative Gerald R. Ford (R-MI)
On Taxes
Recorded March 16, 1950

Ladies and gentlemen, this is your congressman, Gerry Ford, with the 11th weekly radio report from the nation's capitol. Rather appropriately, on Wednesday March 15th the chamber of the House was filled with acrimonious political comment from both sides of the aisle on the issue of taxation. Some accusations made sense; other statements were political, pure and simple. Democrats were chided by their Republican colleagues for the excessive federal tax burden, including excises.The Democrats countered by attacking their traditional scapegoat and whipping post, the 80th ongress, and further denounced the income tax reduction law approved by that Republican-controlled Congress. Former Speaker of the House representative Martin, Republican of Massachusetts, advised and suggested that if the Democratic leadership was so disturbed and upset by the Republican tax-reduction law of several years ago, President Truman and his leaders in the House and Senate could now, if they so desired, ntroduce legislation repealing the law. The 81st Congress, being heavily Democratic, supposedly could and would follow the recommendations of the President and his congressional leaders if they were sincere in theur desire to re-impose the old tax rates which the 80th Congress had reduced. As you will recall, this tax-reduction law removed over 7 million low-income citizens from the payment of income taxes, with 71% of the tax relief accruing to people making 5000 a year or less. Some of the comments on taxation resulted from the problems presently confronting the House Committee on Ways and Means, which has the initial responsibility on tax matters. As you well know, there is considerable demand for the repeal of wartime-imposed excise taxes. These taxes were initially imposed prior to and during World War II in order to curtail the use of certain ommodities and services necessary to the war effort. Admittedly, the continued existence of such taxes after the end of the war has resulted in serious unfair discrimination against workers and employers in certain industries. Consumers also have become rightfully indignant. For the past six weeks the members of the Committee on Ways and Means have heard considerable testimony as to the need and necessity for immediate action.

On Monday, March 13th the following resolution was presented to the Committee by Representative Woodruff, Republican of Michigan, and I quote: whereas the public hearings have revealed many areas in which certain excise taxes are causing numerous hardships by reason of consumer esistance,
production cut-backs and unemployment, and whereas the public hearings have further revealed that it is essential to relieve this condition at
once, I move that the Committee immediately prepare excise relief legislation providing for reduction and/or elimination of excise taxes to relieve this condition and report such legislation to the House forthwith, prior to consideration of other revisions of the Internal Revenue Code, endquote. The resolution was defeated 15 to 10 with all Democrats on the Committee voting against the resolution and all Republicans voting in the affirmative. The resolution was defeated by the Democratic members of the Committee because of President Truman's insistence that there be no tax reduction, including excise tax cuts, unless various additional or new taxes are imposed. In fact, Mr. Truman in his tax message to the Congress implied that he would veto any excise tax repeal bill if it did not provide for an increase in federal revenues from other sources. It is egrettable that the President and his congressional leaders will not permit the House and Senate to consider the excise tax repeal legislation mmediately, and thereafter work on legislation aimed at closing tax loopholes. The President, by forcing the consideration of both problems imultaneously, will cause unnecessary delay. This delay will bring additional untold hardships on consumers, small businessmen, and workers and
employers in various businesses.

Thanks for listening friends, and I'll be back next week with still another congressional report from the nation's capitol.