Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-11-18
.SMOOT FOR INCOME
AND SALE TAX RAISE
Would Double Levy on Earn
ings of $1oO,00o-9h-
lion Seen Needed.
BY the Associated Press.

BY the Associated Press.
Increases in income taxes and impo-
sition of a selective sales tax were rec
commended today by Chairman Smoot
Of the Senate Finance Committee, an
administration spokesman on revenue
legislation.
Smoot proposed the income tax rates
be raised all along the line with the big
boost centered on the higher incomes.
He favored maximum surtax of 40
per cent applying on incomes over
100000 rate double that now in
effect.
Visits Treasury.
The declaration of the finance chair
man, came after visit at the Treas
ury, where the administrations pro-
gram Is virtually complete. His words
were regarded significantly at the Cap
itol.
Smoot said the amount to be raised
has not been finally determined by the
Government. He expects it to b.
necessary to provide for an additional
81, 200 900, 900 by taxation.
He was uncertain how far, If at all,
an attempt would be made to raise the
rates on all incomes but he believed it
was likely that slight raise all along
the line was inevitable.
We've got to do it, he said. Every
one knows now that we must raise more
money; an increase in taxes is the way
to do it,"
Smoot said he would return to the
White House later to talk with the
President
Meanwhile, he decided to consult Mr..
Mellon. He found the Secretary of the
Treasury had reached some rather def
mite conclusions, but was not ready to
make them public yet.
Study Tax Situation.
At the Capitol. meanwhile, Senators
and Representatives studied how taxes
might most easily be raised without
hindering business recovery Represent
alive Smell, candidate for the Repub-
lican speakership nomination, called for
strict Federal economy so with "a rea-
sonable tax raise we will be able to get
by"
Representative Bacharach, a high
ranking Republican on the Ways and
Means Committee which originates rev.
enue legislation, has plan fer increases
in surtaxes, raises in the income taxes
in the higher brackets, and imposition
of levy on non-esSentials. He esti-
mated $750,000000 can be Melted an
nuslly this way. Smell said whatever
program was passed probably would
bring about half a billion dollars ad-
ditional revenue.
Hawley Hopes to Avoid Boost.
Representative Hawley of oregon.
chairman Of the last House Ways and
Means Committee, still hopes a tax
raise will be unnecessary.
However, Senate administration lead
erS have committed themselves for
tax increase of some description. In
the meantime, the House Democratic
leaders are formulating a tax plan
which undoubtedly will include the re-
storation of the gift tax, a revision OF
the estate tax and heavier levies on in
comes in the higher brackets.
Representative Bacharach and Rep
resentative Garner of Texas, Demo-
cratic leader and ranking party me nber
in the last House Ways and Means
Committee. today discussed the taxation
question at closed conference.
Garner in Conference.
In addition, Mr.. Garner has discussed
the question with Representative Ram
seyer of Iowa, Republican member OF
the Ways and Means Committee, who
last year sponsored a tax increase pro-
gram as the 10000 900 Treasury
deficit Of last year was foreseen.
Representative Smell, whose express
sion today was his first on the outlook
for new taxes, predicted the passage OF
something along the lines of Bacharach
plan.
He noted that organization Of the
House by the Democrats, as seems like
ly, would carry with it responsibility for
Formulating tax legislation. Out OF it
all he expects a compromise bill.