The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1925-10-24
FARMERS BACK
INHERITANCE
TAXES
Present Plan Only Way to
Make Rich Pay, They
Tell Congressman
nv InternatIonal News Service

BY international News Service
Unless the Federal Government
STAYS in the inheritance tax bust
ness, erich men will be enabled
to avoid paying anything toward
the support of their Government
through investment of their wealth
in tax exempt securities. the Ways
and Means Committee was told to-
day by number of farmers rep
resentatives who appeared and
gave testimony as to what the
farmers want Incorporated in the
new tax law.
The agricultural representatives
all wanted the Federal inheritance
tax retained, their testimony be-
ing in striking contrast to the
procession of State governors be-
fore the committee yesterday,
urging abolition of the tax.
Cites Suitcase" MiIliOnaires
E. d. PASSED.. of chicago. rapfe-
senting the Farm MogtgagA Bank
e1s Association sal we are ereat-
ing class of suitcase ailli0nsires
who will carry their wealth around
with them in tax exempt securities.
hunting those States which Ike
Florida, has adopted aonstitn Iional
guarantees against Inheritance
taxes
THE late Senator Mccormick OF
Illinois died leaving an estate of
81, 600. 0OO,'' said PASSED.. OF this
esTate 1855, 900 was in tax exempt
securities. The late William @.
Rockefeller was smother example.
THE Federal death tax is the
orIy way such wealthy people can
be made to pay towards upkeep of
Government. We should keep the
estate tax and abolish tax exempt
securities"
Expresses Doubt
Congressman Garner (Dem.l Of
Texas, said he doubted whether the
Government would be keeping faith
with the people should Congress i'm
pose special tax on Government
and other state and municipal tax
exempt bonds, purchased with an
understanding they were to be/ta1-
free.
interrupted to state, II am inclined
to agree with the report and recon-
nlendations of the Governors Tax
Comittee, which recommended a
continuation of the present Federal
estate tax for six years.
IF there is no uniformity by the
States in imposing such taxes for
State purposes, then Congress can
decide whether the Federal tax
shall be continued"
Sole Issues
The estate tax repeal and income
tax exemption are almost the sole
Issues today before the Ways and
Means Committee in the tax redue-
ton fight. The Treasury recon-
mendations for reductions of the
surfaces on higher incomes from 40
to 90 per cent, plus a normal rate
of per cent, arr of the 2, 4 and
s per cent rates on small incomes
to l, 2, 8 and per cent are re-
ceiving little attention. They may
turn out to be the accepted rates
If the $4,000 exemption plan does
not win through.
The committee turned today to
consideration of pleas for reductions
or repeal of excise and miscel-
from tobacco and automobile in
terests, movie pictures and profes-
sional baseball. The tobacco inter
eSts were represented by William
L. Crounse, Washington, d. c., Ma
tional Cigar Leaf Tobacco Associa-
ton; Charles DuShkind, New York,
Tobacco Merchants Association; j.
w. Alsop. Hartford, Conn.,. Con-
necticut Valley Tobacco Associa-
ton: 1. G. Wagner, Lancaster, Pa,
Lancaster Leaf Tobacco Board of
Trade; E. Asbury Davis, Baltimore,
Ma tional Wholesale Tobacconists
committee, and leopold Powell,
New York.
New Rates Urged
They asked a return to the pre-
war level of tobacco taxes which
would reduce taxes 50 a 1000 on
scent cigars, So a 1000 on 2-for.15
cents cigars and $3.50 a 1000 on
10cent cigars.
Quoting the late Vice President
Thomas r. Marshall that the coun-
try needed a good five-cent cigar
Charles E. Dushkind said they ask
ed the reduction in order to "give
the consumer better value, which
will result in more satisfaction and
IGkIu u luCIOdSC0 n,
Taxes collected from the tobacco
industry in 1925 amounted to $685.
900 900.
The automobile industry was rep
resented by George c. Graham,
of Washington, National Automo-
bile Chamber of Commerce; Oscar
Brown, of Syracuse, American Auto
mobile Association; E. p. Chalfant,
of New York. Motor and Access
series Association; w. X. Laidlaw,
of New York. Automobile Body
Builders Association; A. l.. Viles.
Of New York, Rubber Association
Of America, and r. H. Van Ness.
Of Niagara Falls, National Battery
Association.
Repeal Asked
They asked for repeal of the taxes
on automobiles, tires, parts and
The manufacturers
had promised a reduction in auto
mobile prices, they pointed out, II
the taxes were removed and TINS
would be of advantage to the farm
ers and others who have come TO
use automobiles as a necessity. ire
tax on automobiles yields about
800 .OOO, 900 year. This probably
will be retained while other taxes
will be repealed.
John H. Farrell, Auburn. N r,
professional baseball,
md Jack S. Connolly and A. Julian
the movie producers and