Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-03-29
INCREASE IN TAXES
GAINING SUPPORT
Democrats and insurgents
Hold Deficit Must Be Met
by Congress.
By the Associated Press.

BY the Associated Press.
Sentiment for a tax increase to meet
prospective S700,000,000 Treasury
deficit gathered new strength yesterday
from Democrats and independent Re-
publicans.
At the same time Representative
Crowther of New York, a Republican
member of the ways and Means Com
nittee, Endorsed the opinion of admin
istration leaders on both sides of the
Capitol that no increase would be
necessary.
THE deficit is not alarming to me, u
he said. 81 think the Treasury can
handle the situation"
Senator Hull, Democrat, Tennessee,
said 1.-The huge and almost unimaginable
deficit" was the greatest ever faced I'M
der peace conditions and lis due To
one more of the numerous mistakes
and plumbers of the Hoover admins
tration in the management Of Govern
ment finances"
He joined with Representative FTear
Republican, Wisconsin, in taking ex-
ception to the statement of Senator
Reed, Pennsylvania, Republican, at
tributing the deficit to handouts" To
veterans and farmers.
Meanwhile Representative La Guardia,
Republican, New York, who has joined
forces with Senator Norris, Republican,
Nebraska, for cooperation between Sen
ate and House Progressives on legisla-
ton, said increases in income and in
heritance taxes seemed to be tnevi-
table"
KvaIe Shares Opinion.
This opinion was shared by Repre-
sentative Kvale, Farmer-Labor, Mime
sofa, and Frear, member OF the Ways
NRaa7ap GrV,nrnitfpH
why should not incomes that paid
up to 40 per cent after the war be
willing to pay minimum rate OF %
or even 80 per cent, instead OF borrow
ing on Government credit" asked
Frear.
Representative Collier Of Mississippi
who is in line for Craftsmanship OF the
Ways and Means Committee should the
Democrats organize the next House, said
he would prefer raising the higher
bracket income taxes TO a bond issue
for current expenses"
Frear in formal reply to Reed said
Families possessing two or three or
more millions of dollars IN the Sena-
tors own home town have been bene-
flcIaries of these Government hand
outs due to tariff favors that have
reached many of the 60-odd corpora
tions largely owned in many cases by
these family benef1ciaries."
Sees Tax Raise.
Hull said Sl16,0oo,000 in 1919 was
the greatest peace-tine deficit Of the
past.
Some tax readiustment upward will
probably become necessary unless the
Treasury is prepared to experience more
serious deficit conditions during the
next fiscal year than this" he added.
La Guardia said 1T is not TO be eX-
pected that any sane administration
would continue running deficit TO the
extent OF this amount"
AT the rate we are going, it will
only take two years to increase the ma
tional debt by 81 ,00o, 0O0.0 900" he said
Congress must assume the response
bility of providing all the money it APP
propriates for current expenditures
This will have to be done even If 1882
is an election year"
Aside from income and inheritance
tax increases, La Guardia said "a tax
on Notwithstanding beverages" was
the only other feasible source of in
creasing revenue.
Kvale said corporations enjoying
monopoly tariff protection and the big
ger private incomes must contribute
| their share to pay the deficit