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Last week this deadlock was broken by a sudden Senate compromise. As the House Ways and Means Committee completed work on a comprehensive tax-reform bill, the Senate approved a measure extending the surtax to December 31. Senate passage of the reform bill is expected by midautumn. If the reform measure does not pass, further extension of the surtax will be in jeopardy...

Author: /time Magazine | Title: The Congress: Two-Thirds of a Loaf | 8/8/1969 | See Source »

Brinkmanship. Although the Senate vote promised that the 10% surtax will continue to take some fuel out of the country's overheated economy, the compromise can hardly be considered a victory for the Administration. The extension will bring in $5.6 billion. The House-approved Administration bill, which would continue the levy at 5% for an additional six months starting Jan. 1, would bring in $7.6 billion. Still, the Administration seemed content with two-thirds of a loaf. It came perilously close to getting nothing...

Author: /time Magazine | Title: The Congress: Two-Thirds of a Loaf | 8/8/1969 | See Source »

...Vice President Spiro Agnew rejected Senate Minority Leader Everett Dirksen's argument that the Democratic offer of a five-month extension was the best the Administration was likely to get. Agnew telephoned President Nixon in Thailand, won his approval for an attempt to force a vote on the surtax. Agnew then threw down the challenge to the Democrats and demanded that Congress pass nothing less than a full year's extension...

Author: /time Magazine | Title: The Congress: Two-Thirds of a Loaf | 8/8/1969 | See Source »

Saving Face. It was Dirksen who saved the Administration from its own intransigence. Acting without White House approval, he met quietly with Majority Leader Mike Mansfield and negotiated a face-saving compromise. Mansfield, unwilling to saddle his party with the political responsibility for the death of the surtax, readily agreed to a six-month extension, retroactive to the June 30 expiration date of the original tax. The concession was good enough for Dirksen. He contacted White House Aide Bryce Harlow, who conferred with Treasury Secretary David Kennedy and accepted on behalf of the President...

Author: /time Magazine | Title: The Congress: Two-Thirds of a Loaf | 8/8/1969 | See Source »

...compromise, which was expected to win House approval this week, prepares the way for consideration of tax-reform legislation. But action on reform may come slowly. Having already gone down the line for the unpopular surtax, the House Ways and Means Committee had made full extension a part of its tax-reform package. This means that Senate Republicans and Democrats may have some new deadlocks to break before tax reform becomes...

Author: /time Magazine | Title: The Congress: Two-Thirds of a Loaf | 8/8/1969 | See Source »

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