Friday, Apr. 06, 1962
Putting On the Heat
"I've never had such pressure on a bill," grumbled a veteran Democratic Congress man. "You've seen nothing," replied Ar kansas Democrat Wilbur Mills, chairman of the House Ways and Means Commit tee. "I've had more pressure on this bill than you've had in your whole 20 years in Congress." The bill: President Kennedy's tax-revision plan. Source of the pressure: Kennedy.
Actually, it wasn't much of a bill. In its major provisions it would: 1) subject stock dividends and interest on savings accounts, Government bonds, etc. to a 20% withholding tax; 2) offer tax deduc tions of up to 7% for business investment in machinery and other productive equip ment, 3% for public utilities; 3) require that expenditures for entertainment, amusement and recreation be deductible only if directly related to the active con duct of a trade or business; 4) tighten up tax regulations for mutual savings banks, savings and loan associations, coops, and Americans investing or living abroad.
"Must" Bill. But despite the fact that it was a far cry from the much-needed overall tax reform that Kennedy has promised to send to Congress some time in the future, the bill was a Kennedy "must." The President's legislative pro gram has had rough going so far this year.
Without scoring any major victories, he has suffered several setbacks -- and another defeat might well damage the chances of such key measures, still to be considered by the Congress, as foreign trade liberali zation and medical care for the aged. The White House therefore decided to go all-out for victory on tax revision.
Few House Democrats felt any particu lar enthusiasm for the bill, and Republi cans were determined to make it a party-line issue. Plainly, the Administration needed every vote it could get. As debate began, White House Aides Larry O'Brien, Henry Hall Wilson Jr. and Richard Dona hue stationed themselves conspicuously outside the House chamber. Their message to buttonholed Democrats: "The Presi dent really needs this one." When a Mid west Democrat seemed to be faltering, he got a sudden succession of calls from the White House. "My God," he said later, "I never got such attention before." At one point, it appeared that as many as 17 out of New York's 21 -member Democratic delegation might vote against the bill. The Administration enlisted a pair of warring New York leaders -- Mayor Robert Wagner and Bronx Boss Charles Buckley -- to cooperate in putting the heat on the delegation.
Summoning the Sick. As the time for the critical votes approached, House Speaker John McCormack and Majority Leader Carl Albert began working late into the night in rounding up their troops.
Florida Democrat Dante Fascell, who was home campaigning, was instructed to re turn to Washington immediately; Geor gia's Iris Blitch and Pennsylvania's James Byrne were persuaded to get up from sickbeds to be on hand for the key votes. And thus, under the cudgel, the House finally passed the bill by a party-line vote of 219 to 196. It was a victory won by pressure tactics that cannot be used too often without causing resentment.
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