Brownsville herald. [volume] (Brownsville, Tex.) 1910-current, 1931-09-11
G. O.P. Seems
CERTAIN TO
hike TAXES

WASHINGTON. Sept. II. R,-A
variety Of views advocated by con-
g1essional leaders on how TO balance
next years federal budget today
were before Pres. Hoover.
Two administration republican
pilots In fiscal affairs sounded the
GAL yesterday for tax revision. Their
proposals. however. do not coincide
Or follow the program Of republican
independents, who are sponsoring
tax increases. BIZ. their declarations
were believed TO forecast the inclina-
lions OF the administration.
Rep. Bacharach Of New Jersey.
second ranking republican on the
house ways and means committee.
which initiates revenue raising
legislation, advocated increases IN
taxes on estates and on incomes in
excess OF 100000: restoration OF the
gift tax and the imposition of q
sales tax on "luxuries and non-es-
sentials."
Sales Tax Plan.
Sen. Reed OF Pennsylvania. who
has waged past legislative campaigns
Of Sec. Melons programs, came for
ward with a plan for a sales tax Of
one-half OF one per cent upon all
commodities sold to the public.
Meanwhile, other staunch Tepubli-
cans, including Sen. Watson Of
Indiana. the party leader. have TX
ed the administration TO resort TO
new loans next year TO await a re-
turn TO normal conditions before
revising the tax system.
Democratic leaders. who have
spoken on the subject, oppose tax in
creaSes next session. They are aCv)-
eating instead. that the government
pare down the money spent annual
1y in retiring the public debt.
That Is the picture today as the
new proposals opened debate that
will come to a head early In the
December session.
Sen. Brookhart OF Iowa. q republic
can independent. led off the discus
sior with an assault upon Sen.
Reeds sales tax proposal. He said
II am in favor OF Increasing the
taxes on the incomes OF Sen. Reed
and Sec. Mellon"
While the president and Sec. Mel
lon are maintaining silence pending
further study of the government in
come in the next few months, n
tax revision calls OF Sen. Reed and
Rep. Bacharach were regarded signi-
ficantly IN Washington. Their de-
clarations were believed to forecast a
move by the administration to raise
additional revenue 10 meet next
years prospective billion dollar de-
,ficit through taxation.
II Mr.. Hoover and Mr.. Mellon rec
ommend tax revision TO congress a
bitter contest Is In prospect. The
republican independents. who WELD
the balance OF power next session,
are demanding increased rates on
the higher incomes and one the
estate or inheritance tax.
Fight Looms.
Just now IL looks like a three
cornered fight. II the democrats OPP
pose tax revision unitedly. they could
almost block it with the aid OF the
republican independents and republic
publican Independents and republic
"a regulars divided on how to ac-
complish the revision.
(Mr. Bacharach was outspoken in
lhis recommendation to increase
1Ae-eS on incomes OF more than $780,
900 to which a surtax OF 20 per
cent now applies. He said statistics
on investment incomes showed hat
"the only class which reaped sub
stantial profits during the years 1925
TO 1929 consisted OF about 14.700 in
dividuals with net incomes in excess
Of S100.000 per annum."
This class" he continued. sin
creased their investment income and
probably their capital by more than
so per cent; the other classes lost
ground. In view OF the fact that
the government has placed no sub
stantial limitation on the accumula-
ton OF wealth and because in re-
cent prosperous years. the relatively
few taxpayers with net incomes IN
excess OF $1,000 O have actually ac-
cumulated extraordinary amounts OF
capital. II seems obvious that these
individuals are able to bear the bulk
of any increased tax burden"