The Bismarck tribune., 1931-10-22
GOVERNMENT MEN
SURVEY FIELD TO
DETERMINE MATTER
Proposed Leyies Would Not Be
Placed on Food, Rent, Fuel
Or Necessities
MAY RESTORE AUTO TAX
Ilnpost Was Lifted in 1926 Over
Protest Of Secretary
Mellon
MAY RESTORE AUTO TAX

washington, Oct. 22.-H1-The gov
ernment is officially considering q
plan OF selective sales tax as q
means of raising money to counter
balance its declining income.
While no definite decision has been
made as to whether 1t will be rec
commended to congress. experts are
carefully combing the field to see
what articles could be included,
They have considered many articles
and 1t has been definitely decided that
no tax can be placed upon articles
OF food, rent, fuel or other necessi-
ties. Such articles at matches, auto
mobiles. radios and perhaps cigar
cites were considered as logical
sources for bringing in additional
revenue.
Taxes on such articles, officials be-
lieve, would largely be absorbed by
the manufacturer and not affect the
purchaser.
Automobiles formerly were taxed,
but the tax was eliminated In the
1926 revenue act over the opposition
Of Secretary Mellon. Experts, In 60
ing over the field, have looked at
the automobile tax from the stand
point that automobiles use the roads
constructed by the government and
the states without paying any tax
except nominal license fee and q
gasoline tax.
That the government must raise
more revenue has been conceded by
officials since the 1881 fiscal year
concluded with deficit Of 1908, ,000,-
600 and three and half months Of
the present fiscal year have produced
q deficit of $6l7, SIS ,720.
Hole Getting Deeper
In the last fiscal year there was a
drop Of $3.50, ,000, 900 In income tax and
In the present fiscal year there already
has been a decline Of $247. 900 900 IN
income tax collections.
Figures received by the internal
revenue bureau have indicated that
much OF the income from this tax,
which forms the chief element Of the
governments tax system, has been
wiped out during the business decline.
The government does not contem-
plate raising enough money through
any tax increase that may be decided
upon, to balance the budget immedi- j..
ately, considering that when business
revives the necessity Of raising the
amount needed to cover the expendi-
lures Of these two years would be re-
moved automatically.
. Any tax increase will be based upon
the normal years.
Congressman Busy
Conservative and progressive leaders
OF both political parties in the House
are known to be planning an upward
revision of federal taxes regardless
of what President Hoover recon-
mendS.
The chief executive is expected to
base his proposals for meeting the
treasury deficit on an exhaustive
study being made by the budget and
revenues by the treasury department.
Results Of this survey probably will
be made public next month before
his annual message to congress.
Months ago, however, 1t was learned
Thursday, both Republican and Dem
ocratic members Of the House ways
and means committee, which formu-
lates all revenue-raising legislation,
began a quiet investigation Of taxa
ton problems.
With the assistance of tho Joint
committee on internal revenue taxa
ton, Representative Garner of Texas,
ranking Democratic member Of tho
ways and means committee, made q
study last spring with a view to Of
fer1ng a concrete plan for the stabili-
zation Of the revenue flow and for
more equal distribution of the taxa
ton burden. It was undertaken about
the same time that Representative
Oregon, chairman Of the
last House ways and means commit
tee, announced he was surveying tax
alton legislation.
Looks at Inheritance Tax
While the Texan has not divulged
the scope Of his study, it IS known he
directed 1t toward increasing the in
heritance tax. levying Of q gift tax
and raising income taxes in the high
er brackets.
In addition. Garner has made q
complete scrutiny Of court decisions
on big tax cases with view to offer
ing amendments to the income tax
law to stop evasion Of payments by
the wealthy.
In the meantime, q separate study
Of tax laws is being made by q group
of Republican members headed by
Representative Bacharach, Of New
Jersey. another ways and means COM
mittee member. Bacharach recently
raising the income tax In
the higher brackets among other
changes. His proposal follows closely
that of Senator Reed Of Pennsylvania
for a sales tax to increase federal
revenue.
Senate Group Meeting
An entire program for the raising
of about $750,000, 900 annually In rev.
enue through sales taxes on certain
luxuries, and by increasing taxes on
the higher incomes, inheritances and
the levying OF gift tax has been
submitted to the progressives Of both
parties by Representative LaGuardia,
progressive Republican. New York.
Other members OF this group also
have expressed themselves in favor
Of increasing the revenue through
some such means.
Mobilization Of q second senate
Continued on page nine)