Probable Course: No Cut

With some bitter words about high taxes and broken promises, New York's white-maned Republican Representative Daniel Alden Reed last week announced that he will not try to bring his tax-cutting bill to the floor of the House without a green light from the Rules Committee. Reed decided that the bill (which would cut individual income taxes about 10% on July 1) would be amended to death if his party's leadership was not ready for it. But he was quick to point out that he still hopes the leaders will bring it out. Said he: "I have not surrendered ... I shall fight more vigorously than ever to fulfill the pledges of the Republican Party."

While no one could say exactly what course tax legislation will take, most of the arrows last week pointed this way: 1) House leadership will let Dan Reed's bill come out in mid-May, and the House will pass it overwhelmingly; 2) the Senate will study the bill for a month, then rewrite it to postpone cuts in both income and excess-profits taxes until next January; 3) the House will scream but, under pressure from the Administration to balance the budget, will finally pass the Senate version.

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