Evening star., 1931-12-13
DEMOCRATIC TAX
AIMS COHERENT
Joint Policy Committee to
Begin Work on Bill Com
ing Week.
BY G.. GOULD LINCOLN.

During the coming week the Demo-
Gratis. through their Joint Congressional
Policy Committee, are expected to begin
work on the Democratic tax bill In
the end this bill will have to be drafted
by the Democrats of the House Ways
and Means Committee. The Joint Com
mittee. however, composed of leading
Democrats from both houses, is ex-
pected to have considerable influence
in framing the tax plan. The first
meeting Of the Joint Committee Is to
be held Tuesday morning.
Democratic leaders predicted yester-
day that their tax plan would differ
Ntally from the plan advanced by Presi-
dent Hoover and Secretary Mellon. 1t
undoubtedly will look to increases in the
income tax rates on larger incomes. to
increase estate taxes and to gift tax as
the principal means Of increasing reve-
nue..
The Democrats are expected TO resist
the recommendations of Secretary Mel
Ion to increase the normal tax rates
on small incomes and to reduce the ex-
emptiness of individuals They are op-
posed TO such excise taxes as those pro-
posed by Secretary Mellon on radios.
automobiles, deeds, checks, telephone
and telegraph messages, and so forth.
Iney are particularly opposed to max
ing the increases In taxes on incomes
retroactive, so that they will apply to
incomes in 1891.
Government Securities.
The Democrats believe that a large
part of the deficit In the Treasury
should be cared for through the issue
Of Government securities They be-
lieve particularly that bond issue to
cover the expenditures of the Govern
ment for large building projects of all
kinds, designed to help relieve the en-
ployment situation, should be covered
by the issue of bonds.
Senator Pat Harrison Of Mississippi
ranking Democratic member of the
Finance Committee. again attacked the
administration tax plan yesterday,
saying:
"As soon as it was hinted by the
President and the Secretary of the
Treasury that retroactive features
would apply in the collection of taxes
under administrators program, all Sc
curlty values were affected, and stock
prices declined. 1t was natural Sc
quence, when the public became ad-
yiseo that income taxes would be COL
lected on 1881 operations, that the
investing public should throw its Sc
curities on the market so as to take
its losses, so that they might put them
In their tax returns next year. AS bad
as were other features of the admins
tration's tax program. the retroactive
feature was the worst"
The Democratic tax proqram NAV
take several weeks in the making it
was indicated yesterday.
Little was done by either house of
Congress during the first week of the
session. The House elected q speaker.
Mr. Garner, and then gave itself over to
debate OF the Presidents message, with
many political speeches In the SEN
ate, a, deadlock was reached when ef-
forts we're made to elect a president
pro tempore. More than a dozen Re-
publican Senators voted for some other
Republican for this Office than Senator
George H Moses of New Hamosh hire.
the candidate of the regular Repub-
licsn organization.
Last night the matter still hung in
the balance. with the Republicans
striving to work out compromise, DOS
sibly with Senator Norbeck of South
DaKota as substitute for Moses. Sen
ator Moses continued 10 indicate. how
ever, that ne had no intention of
Withdrawing from the race.
There were reports that some of the
Progressive Republicans of the West,
mcIuong Senator Brookhart of Iowa
were prepared to break the deadlock
py Votlng for Senator Pittman of Ne
Vaaa' the Democratic candidate for this
once. On the other hand. it was
hlnteo that some Of the regular Re-
pupHcans might walk out. thereby
leaving the field to the Democrats un-
less an agreement could be reached.
developments during the last week
have made 1t impossible for Senator
Moses to be reelected. and the pros
poets were for an election of a Dem
ocrst.
With committee assignments COM
plete, Senate leaders planned tn organ
lze the Senate tomorrow end get to
WORK on the mass Of legislation con-
fronting them
The vexing job of dividing committee
assignments among the various appli-
cants was completed yesterday at a
meeting OF the Republican Committee
on. Committees.
senators Cutting of New Mexico and
Glenn OF Illinois we're assigned tn the
important Foreign Relations Committee
ana senators Metcalf of Rhode Island
ano Jones OF Washington were given
posts on the Finance Committee, which
oraIs TAX and revenue legislation. The
prospects are for speeches and more
speeches in the House since that BODY
Will nave nothing before it, unless Rep
ressntatlVe Mapes should be ready to
nlsEe report on the fiscal relations of