Evening star., 1931-12-11
DEMOCRATS MEET
NEXT TUESDAY TO
DRAFT TAX PLANS
Hoover Mellon Proposals Ex-
pected to Undergo Consid-
erabIe Revision.
By the Associated Press.

By the Associated Press.
Congressional Democrats held infor.
NAL discussions today on the formula
tion of tax'tncrease program designed
to distribute the burden Of government
costs evenly.
The party leaders meet next Tues
day to put their proposals on paper
They now expect to propose an in
crease in the surtaxes, a raise in the
income taxes in the higher brackets, a
gift tax, and to advocate bond issue
to take care of some Of the Treasury's
deficit.
The Treasury reported today the
deficit for the first five months and
nine days of the 1882 fiscal year
amounted to 1925, ,s45 900, which is
s5,oOo,ooo more than for thc entire
fiscal year Of 1881,
s2,oeo o,eoe, 600 Deficit Seen.
With the prospective deficit of s2,-
0o0, 100000 this year, and the Demo-
Gratis opposed TO general sales "a
doubtedly will undergo considerable re-
vision If 1t Is not entirely supplanted
by the new Congress.
The powerful Michigan delegation
generally administration supporters, Is
opposed to the Hoover Mellon tax pro-
posed on automobile sales. Representa- :
tive Treadway Of Massachusetts,. Re-
publican on the Ways and Means Com
mittee that drafts revenue raising legis-
lation, opposes levyiEc income tax on
small salary and wage Gamers, as pro-
posed by the administration.
Speaker Garner said there is plenty
OF time to work out this tax program,
and we are going TO do it carefully
we have six months In which to do it.
He opposes a general sales tax.
Extensive Hearings Planned.
Majority Leader Rainey, in the
Democratic House, said he favors
higher taxes on big incomes, and as
tar as possible, the men of smaller
incomes should be protected because
they need every cent they can earn"
Chairman Collier of the House Ways
and Means Committee, said the tax
program would be taken UP early in
January. Extensive hearings will be
held before bills are reported for action.
The Mississippi Democrat favors
raising funds 10 meet the deficit
through bond issues and increasing GER
tain taxes.
Senator Harrison, Mississippi, rank
ing Democrat on the Senate Finance
Committee. is strongly opposed to a
retroactive application of the new in
come rates on the 1881 incomes. The
Democrats generally are expected to
oppose this part of the Hoover Mellon
plan.
Meanwhile, assurance of Democratic
aid in guarding the Treasury and "co-
operation in every way possible to re-
duce Federal expenditures" was given
to President Hoover today by Chair
man Byrns OF the House Appropriations
Committee.
Hopes to Cut Budget.
The Tennesseean stood outside the
Presidents Office after his conference
and served notice that as chairman of
the committee first responsible he would
MAKE every effort TO aid the admins
tration's plan TO diminish Government
spending.
DO you intend to keep within the
budget?" he was asked.
4 sure do" he replied. II hope to
reduce it If possible"
The budget submitted this week by
the President is but slightly under
$4,000 ,0o0, 900. The President warned
1t must be strictly needed and taxes
must De raised, or the Government
would De s4,442 900 900 behind by the
end Of next fiscal year.
Byrns plans TO have his con,p,ittee
INST tackle the $500, 900, 600 appropria-
tton which the Veterans Bureau needs
to carry out last Winters law for lend
ing on service certificates