Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-09-11
Lie
inTax Revision
or Bond Issue.
PARTY'S COURSE
UP TO HOOVER
Mellon Is Said to
Favor Levy Change
to Meet Deficit.
nv G.. GOULD LINCOLN.

WlUnln q SIlOI IIIIlC IlIC lAOONSA
administration is expected to an
nounce a definite fiscal policy to
meet the budgetary situation.
Whether the President will
recommend a readjustment or re-
vision of the Federal tax structure
or declare for policy of meeting
the Governments needs beyond
it's present revenues through the
issuance of securities, it was said
today on high authority, has not
yet been determined.
Secretary Mellon of the Treas
ury Department is urging upon
the President, it is said, the initia-
ton of tax revision.
On the other hand. some OF the
Presidents most trusted advisers
in Congress are opposing a re-
vision of taxes at the coming SeS-
sion Of Congress.
Decision Up 10 President.
1t is up to the President. it was point
ed out today. TO determine in the final
analysis whether there is to be a tax
revision undertaken. The Republican
congressional leaders undoubtedly will
so along with the recomemnda tons
which the President makes, if he de-
cides in favor Of throwing the matter
into Congress But many of them ere
devoutly hoping that he will not follow
that course.
Should the President make no lecom-
mendation for tax revision at the COM
ing session of Congress. it was conf
a -,
tation in certain groups in the House
and Senate for such revision. no tax law
would be put through. And even Il one
passed both houses of Congress. in OPP
position 10 the plans Of the adminStra-
ton. it could not pass over a preSiden-
tial veto.
Party Apprehensive.
Republican congressional leaders look
with apprehe nsion upon the submission
of tax revision measures to a Congress
in which the ma jority party has no
working majority in either House or
Senate.
What they fear is that a tax bill
would come from the Congress in a
form that would compel the President
either to veto it or approve a measure
that might have disastrous effects upon
the country.
They fear that the Congress might
write into the bill a revenue producing
program which would not merely help
to meet the deficit but would undertake
TO provide enough money to finance all
kinds OF huge governmental projects.
employed and public works running into
the billions.
Courses Outlined.
The budget must be balanced. Either
the governmental expenses must be Gu;
so that the deficit will be met taxes
must be increased to bring in suff1cien;
revenue to wipe out the deficit. oil
money must be borrowed by the Gov
eminent for that purpose
Congressional leaders generally agree
that it would be impossible to cut gov
ernmental expenses to the extent need
ed to wipe out the deficit The slterna :
tive remains OF increasing taxes or bor-
rowing the money on short or long
term securities TO meet the situation
Some of the important Democratic
members of the Senate and House are
not anxious to tackle the matter of tax
revision at the coming session of Con-
gress. Senators Harrison of Mississippi
and Swanson of Virginia are among
OF short securities might meet the
situation.
Might Borrow Money.
1t was admitted today that the Gov
eminent might only postpone the evil
day by borrowing money But the
argument was advanced in high Re-
publican quarters that an attempt to
revise taxes in the coming Congress by
q CIV frlA l. mt
on business, which is struggling out Of
a moraSS now
With the question Of taxation and
balancing the budget now in the spot
light, the opinion was expressed that
the administration would materially
lessen uncertainty in business circles by
announcing with as little delay as pos
sible a program for financing the Gov
eminent.
Reed Plan Fought.
The proposition advanced by Senator
David A. Reed of Pennsylvania yester-
day for revision of the taxes by the i'm
position Of general sales tax of one
half Of one per cent on all retail sales
did not meet with sympathy from other
Republican Senators today. They in
sisted that such a sales tax not only
would be greatly unpopular, but that
there was not the slightest chance OF
enacting it into law.
If any tax revision is put through at
the coming session, the opinion was ad-
vanced today that it would provide for
increases in the income tax, particular
ly in the SurtaXeS, and that the estate
taxes would be increased and possibly
a gift tax would be enacted into law
TO prevent the evasion of the estate
taxes. Taxes might be levied, also, on
Injuries and non-essentials, so-called.
Senator Watson of Indiana, Repub-
lican leader of the Senate, was White
House caller TODAY As he was leav-