The Washington times., 1931-09-12
TAXATION TALK
EMBARRASSES
BOTH PARTIES
Neither Republicans Nor Dem-
ocrats Want Responsibility
For Enactment of Measure

0CratS want responsibility
For Enactment of Measure
BY WILLIAM C. MURPHY, JR.
In the universally understood
language Of gangland. both ma
jor parties have been put on a
very hot spot by the current dis
cussion Of possible tax increases
at the coming Congress.
Neither Republican nor Demo
cratic members want to take the
responsibility for passing such
legislation on the eve Of presi-
Dental campaign, and, because.
of the even division Of party
strength, neither party could dis
claim responsibility II such legls-
lation is enacted.
G. o. p. Chiefs Split
So far the discussion has had
all the appearance Of a row he
tween Republican leaders. Sen
atOr Reed (RO, Pennsylvania.
member Of the Finance Commit
tee and frequently . spokesman
for Treasury Secretary Mellon.
wants a general sales tax.
Representative Bacharach CRo,
New Jersey, member of the Ways
and Means Committee and prob
able candidate for the Speaker
ship, wants increased surtaxes on
higher bracket incomes. q restor-
alton Of the gift tax. and o sales
tax on luxuries.
Senate Leader Watson Ro,
Indiana, thinks it would be most
unWiSe to raise taxes at all.
What President Hoover wants
has not been revealed. but there
have been authoritative intima'
tions that he is coming around TO
the view that some tax revision
may be necessary.
Democratic Votes Needed
Theoretically the Democrats
should be capering with glee at
this spectacle of Republican con-
fusion, but that is not what the
Democrats are dOnig at all. They
realize that with the existing
division among the Republicans,
it will be Democratic votes in the
House and Senate which will
decide whether taxes will be in
creased.
Senator Harrison CD Missis-
sippi, ranking member OF the
Finance Committee, and Senator
Swanson (DO Virginia. one OF
the party'S elder statesmen, are
on record as opposed to increased
taxes. They hold the Govern
ment's needs can be met by bor-
rowing and by reducing retire
ment payments on the public
debt.
The Democrats hope to make
another play for the support of
business interests next year and
increased taxation does not fit
into that picture unless response
bility can be fixed squarely on
the Republicans.
GentIeman's Agreement
Republicans are beginning to
discuss how delightful it would
be il the Democrats should sue
ceed in organizing the House and
Senate in December. Then it
would be up to the Democrats to
raise taxes or nOt-&ith the Ger
tainty they would be rOundIy
criticized no matter which course
they adopted.
A more probable solution Of the
bipartisan problem, however, Is
a gentlemen'S agreement among
the leaders to let the question Of
tax revision go over until after
the 1892 election.
In the meantime, however, there
will be the problem of what to
use for money. The Government
ended the" last fiscal year on July
/, with a $1,000, 100000 deficit
which was met by a bond issue.
BY July /. 1882, it is generally
admitted there will be another de-
ficit amounting probably to ST.
200, ,000, 900 or even more.
From these factors, those in
touch with the situation arrive
at the conclusion that If the Gov
ernment is to be kept going by
borrowing it must resort to secur-
ity issues Of wartime ma agnitude.