Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-04-26

licans, as well as Democrats, are be-
brisk contest when Congress meets next
December.
Deficit VS.. Tax Increase.
The Republicans will have to deter
mine whether they prefer to go into
the coming national campaign with a
huge deficit facing the Government or
whether they prefer to bring about an
increase of taxes to meet that deficit.
Increases in taxation are never popular.
While Senator CouZenS and Senator
Reed were talking Of taxes and tariff,
respectively, Representative Will Wood
of Indiana, chairman of the House
Committee on Appropriations, in an in
terView strongly recommended that
every effort be made. to eliminate large
and extraordinary Fedora expenditures
in order to prevent an increase in taxes
%leich Senator Couzens and others in
SAEt will be necessary.
The chairman of the House Appropri-
atoms Committee commented upon
President Hoovers estimate that a $685.
100000 reduction in Federal expendi-
lures for the fiscal year ending June 80,
1882. as compared to those for the pres
ent fiscal year, MAJ be possible.
THE expense of the Government is
constantly increasing" said Mr.. Wood,
land it is up to every member of Con-
greSS to do all he can to hold down
appropriations"
He added that with the income Of the
Government decreasing because Of the
depression 1t would be impossible for
Congress to keep up extraordinary eX-
penditures such as we're made last year
without raising taxes.
Would Cut Defense Funds.
"There ought not to be an increase
IN expenditures for national defense"
said Mr.. Wood. I'VE are spending
twice as much as before the World
War and yet we are further away from
war than we have been for long time.
We can't be thoroughly prepared for
war unless We maintain a standing
army half the size Of the armies Of all
continental Europe"
MI, M; Wood "a. also opposed the up up;
strength permitted under the terms Of
the London Naval Treaty, estimated to
cost billion dollars in the next five
years. Discussing legislation for World
War veterans, Mr.. Wood insisted that
expenditures should be kept to mini
mum. He admitted that expenditures
for the veterans would increase as the
veterans became older. For the pres
ent, however, he would keep these ex-
penditureS down. 1t might be neces-
Sary he said to put through some
further aid for widows OF veterans. In
view Of the conditions in the country,
he said, other veterans expenditures
should be kept down.
II representatives of veterans organi-
nations keep on making extraordinary
demands, especially in view Of the
deficit which Is piling UP, there will be
q backwash Of sentiment in the country
against these OUTLAWS" he said.
The House veteran said he would be
opposed to law establishing five
day work week for Government en-
ployes. suggested IN many quarters;
~that the Saturday half-holiday law
would mean no increase in cost to the
Government, yet the Budget Bureau
estimates it win cost sl3,0o0,000 a
year"
Must Revise Tax Laws.
Senator Couzens, In advocating action
by Congress in the coming session to
increase taxes, said:
Congress cannot avoid serious con-
eideration Of revision Of the tax laws
II the Government is to be conducted
Il would increase the surtax rates on
incomes at least to 1924 rates. If those
rates had been In effect now, the Gov
eminent would have collected $3.50, 000,-
600 more this year than 1t did"
He said he was having an inquiry
made of what the effect would have
been If the rates prevailing In 1918 and
1921 had been in effect.
The gift tax, he said, should be re-
vtved. That tax was repealed several
years ago on the recommendation of
Secretary Mellon, who declared 1t an
unwise tax and urged a more sound
system Of taxation. Senator Couzens
insisted, however, that there was no
more reason why a man should be per-
naitted to transfer his property prior
TO his death tax free than that the
transfer Of the property should be taxed
after the mans death. On the con-
trary, Senator Couzens commended, there
. more reason to tax the transfer be-
lore death. He said he was convinced
that men of large wealth were con-
stantly transferring the great bulk of
their property to their heirs before
death and thus were escaping the estate
taxes now imposed by the Government.
why should a man with $500, 0OO, 900
be permitted TO transfer. this wealth
tax free before his death" he asked