Slow Going

Treasury Secretary Douglas Dillon marched into the Senate Finance Committee hearing room prepared to do battle--speedily, he hoped--for the Administration's tax cut bill. But the only person there who seemed to be in much of a rush was Doug Dillon.

For seven months the bill had wallowed in the House Ways and Means Committee, finally emerged and was passed by the House, with significant changes from Kennedy's original version. Now, at last, it was before Senator Harry Byrd's Finance Committee. But Virginia's Byrd is an all-out foe of cutting taxes without cutting federal spending, which the Administration definitely does not propose. So the measure is destined for more rough, slow sledding.

Dillon could not have been more eager to grease the legislative wheels. He promised that the Administration would not fight the House version, even though it is not wholly satisfactory. And as for tax "reform"--as opposed to reduction--Dillon said that this could wait until another day.

For his apparent willingness to get a bill at any price, Dillon drew an angry rebuke from liberal Illinois Democrat Paul H. Douglas: "By not having a virile stance in favor of tax reform, you have permitted the reform provisions to be gutted." There was also a partisan slap from Tennessee's Democratic Senator Albert Gore, a key member of the Finance Committee (see box), who accused Republican Dillon of "subverting the economic liberal policies of the Democratic party at the Washington level." Added Gore: "When the country votes conservative it votes Republican. I don't know if you'd like that or not."

Throughout it all, Chairman Byrd benignly regarded Dillon from behind blue-tinted glasses, mildly noted that the House bill would result in an average annual saving of $110--$2 a week--for each taxpayer. Byrd merely wanted to know how such "cigarette money" would really stimulate the U.S. economy. Dillon replied defensively that while the cut might not mean much to individuals, the total effect would be impressive. Byrd nodded. Things were going his way--slowly. There were still about 170 witnesses, pro and con, scheduled to be heard by his committee. Doubtless some of them would argue --as have Dillon and the Administration-- that failure to pass the bill means a probable recession next year. But not everyone agreed with this. Last week the Business Council, whose 100-plus members are presidents and board chairmen of large U.S. corporations, heard a report by its committee of economists that business will be good through 1964, tax cut or no.

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