House Delays Legislation to Cut Income Taxes; Industry Demands Action to End Union 'Monopolies'

WASHINGTON, February 17--A "hold everything" order today forced the post-ponement of House legislation to cut income taxes, even as the Senate voted to keep in effect the high wartime tax rates on luxuries, travel and telephone bills.

In announcing the order, Chairman Knutson (R-Minn) of the House Ways and Means Committee told reporters that if Congress falls to slash $6,000,000,000 from President Truman's $37,500,000,000 budget, "it will kill any idea of a 20 percent (income) tax cut."

Knutson declined to estimate when he may not income tax hearings to begin, saying only the matter must wait until the budget issue is settled.

With the Senate apparently ready to hold the budget cutting to $4,5000,000,000 to avoid slashes for the Army and Navy Knutson said that if the lower cut prevails "the tax reduction this year certainly will be something less than 20 percent."

The Senate decision to retain wartime excise rates, on whiskey, beer, fur coats, lipsticks, luggage, admissions, passenger fares etc, was on a simple voice vote. The House had likewise voted to retain them, but because of differences of working, the Senate and House versions will have to be adjusted in conference.