Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-09-12
LEADERS DIFFER
ON TAX REVISION
Watson's Opposition Empha-
sizes Disagreement Among
Republicans.
BY the Associated Press.

BY the Associated Press.
A sharp difference Of opinion over
tax revision at the next session OF
Congress is held by administration Re-
publicans.
This was emphasized yesterday when
Senator Watson of Indiana, Republic
can floor leader, declared at the White
House that he was opposed to re-
vision at this time. His view on how
to meet the Treasury deficit this year
differs from the revision proposals OF
Senator Reed Of Pennsylvania and
Representative Bacharach of New
Jersey, also administration followers.
At the same time, Senator Harrison
of Mississippi, ranking Democrat on
the Finance Committee, said in a
statement through the Democratic
National Committee, that "of all times
/ this is the worst for men in high places
to talk about increasing burdens upon
the American public"
Watson Against Revision.
Senator Watson said it would be a
mistake to attempt to revise the reve-
nue. system at the next session, be-
cause, he added, it would have an un-
settling influence upon business gen.
orally.
The difference of opinion was voiced
while President Hoover is studying the
problem of whether to recommend a
change in the revenue system or to
continue the Treasury practice OF
borrowing money through long-term
bond issues and Short-term financing
to meet the deficit created by declining
receipts and growing expenditures.
Senator Reed is sponsoring general
tax of one-half of l per cent upon all
sales of commodities. He said II no
additional revenue was forthcoming we
must then put our foot down on the
Farm Board, on any further approprla-
tions for Stabilizing operations, and we
must say mo- to the American Legion,
the Veterans of Foreign Wars and other
veterans organizations demanding in
creased benefit for veterans"
Watson expressed faith In the ability
of Secretary of the Treasury Mellon to
secure funds to meet expenditures during
the depression and urged that the peo-
pie find where we stand" before gong
into the revision if it is necessary.
His view met the approval OF Senator
Hatfield, Republican, OF West virginia s
who said he was fearful OF the conse-
quences a Lewiston would have on bust
ness conditions generally.
Slowed Down Business.
Representative Bacharach had advo-
Gated an increase in the income taxes
in the upper brackets. along with grit
tax, but Senator Harrison said the FED.
eral finances were not In a STRAINED
condition.
I'VE have a deficit, tits true" the
Mississippian said, resulting from the
narrow and selfish policies OF the Hoo
yer administration, which slowed down
business and deprived the Government
of reasonable revenues.
But it must not be forgotten that
for the last 10 years, under the leader
ship Of Mr. Mellon, as Secretary OF the
Treasury, from $50 to $50 millions OF
dollars annually were collected by the
Government in taxes in excess OF gov
ernmental requirements. These excess
collections built UP large surpluses at
the expense of the taxpayers. They
went toward the payment Of the ma
tional debt and today we are more
than five years ahead Of the scheduled
time in which the Government believed
the national debt should be retired"
From President Green Of the Ameri-
can Federation Of Labor also came OPP
position to Reeds sales tax proposal
He said the federation would exercise
all its influence to prevent enactment
of such legislation and added that it
would be unfair and unjust to the
masses, particularly at this time.