Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-09-11

continued From First Pa2e)
would be a great mistake to undertake
tax revision at the coming session OF
Congress He said, too, he was OPP
I posed TO the sales tax as proposed by
Senator Reed. He ADDED that he did
! not think it was necessary to worry
about the Treasury as long as Uncle
Andrew Mellon" was the head of that
department Of the Government.
The Indiana Republican said he also
| had discussed the membership OF the
Tariff Commission with the President,
but was not at liberty to disclose the
names of the men being considered TO
I'LL the vacancies caused by the death
of Alfred P. Dennis and the impending
resignation OF Chairman Henry P.
Fletcher
Representative Bachrach of New
jersey second ranking Republican OH
the House Ways and Means Committee,
which initiates revenue-raising legisla-
ton, advocated increases in taxes on
estates and on incomes in excess of
100000. He also proposed restoration
of the gift tax and the imposition of a
sales tax on "luxurieS and non-esSen-
tails
Reed Favors Sales Tax.
Senator Reed. who has waged past
legislative campaigns Of Secretary of the
Treasury Melons programs, came for
ward with plan for a sales tax of one
half of one per cent upon all COM
modities sold to the public.
Meanwhile. other staunch Repub-
licans, including Senator Watson of In
diana. the party leader have asked the
administration to resort to new loans
next year to await return to normal
conditions before revising the tax sys-
tenn.
Democratic leaders. who have spoken
on the subject, oppose tax increases
next session. They are advocating. in
stead, that the Government pare down
the money spent annually in retiring
the public debt.
That is the picture today as the new
proposals opened debate that will come
to head early in the December session.
Senator Brookhart of Iowa. Repub-
lican independent, led of the discus
sion with an assault upon Senator
Reeds sales tax proposal. He said Il
am in favor OF increasing the taxes on
the incorses of Senator Reed and Sec
rotary Mellon"
Mr.. Bacharach was outspoken in his
recommendation to increase rates on
incomes Of more than 100000. to which
surtaX Of 20 per sent now applies
He said statistics on investment in
comes showed the only class which
reaped substantial profits during the
years 1925 to 1929 consisted of about
14,700 individuals with net incomes in
excess of 100000 per annum."
Higher Incomes Gain.
This class he continued, increased
their investment income and probably
their capital by more than SO per cent
ho nf r1a In
of the fact that the Government has
placed no substantial limitation on the
accumulation of wealth and because in
recent prosperous years the relatively
few taxpayers with net incomes in eX-
cess of 100000 have actually accumu-
lated extraordinary amounts Of capital,
it seems obvious that these individuals /
are able to bear and should b2ar the
bulk of any increased tax burden
Senator Reed estimated his universal |
sales tax. applying to everything sold |
in the retail markets, would net the |
Government almost two billions an |
nually, or one-half of its total ex-
penSeS.
He would retain present income tax |
rates, but would plug up some of the |
leaks" which. he says, are permitting |
the burden at the expense of those |
earning incomes.
Arms Cuts Fought.
Both Reed and Bacharach took issue
with Chairman Wood of the House
Appropriations Committee, who would
cut Government expenditures down to |
revenue, principally by pairing down
the costs of the Army and Navy.
Senator Reed. who is chairman Of
the Senate Military Affairs Committee
and served on the American delegation
to the London Naval Limitations Con-
ference, asserted national defense was
down in cost now to the danger
point"
He said more money was paid out in
bonus loans to the veterans this year
than it cost to run the Army and added:
IF the bonus keeps on we are going |
to see inevitably the Army and Navy |
cut below the danger point"
Fears Danger Point.
AT t',e present time" he said. I'VE
have pared our Army down to the point
where we have fewer soldiers per capita
than any other civilized country on !.