Evening star., 1931-12-29
GARNER D|SCLOSES
PARTY'S TAX PLAN
Would Amend Existing Laws
TO Stop LoophoIes for
Evasion of LevieS.

e (continued From First Page)
~It is unjust and might prove very
disturbing TO business. 1t would react
against business men who had not fig
ured in additional taxes in their enter
prises. -.
Il won't foreclose myself on it, but
I would not resort to 1t until every
other method OF raising revenue had
been exhausted"
He concurred with Speaker Garner
and Representative Rainey on the DEM
ocratic plan to raise taxes on incomes
in the higher brackets, levy gift tax
and impose a special estate tax.
The increased surtaxes, he SAID,
should begin on incomes of $4,000, al
though he added he was opposed TO
lowering the present exemptions on
small incomes
Opposes Sales Tax.
IT am opposed to general SAILS tax,
although we may have to resort 10
one" the Mississippian said.
e we also may have to resort to eX-
The Mississippian said that, while
b the Government was ahead about
S4,500 100000 on retiring the pubic
debt, if the big deficit in the Treas
ury continues we won't have much re-
serve left
AS far as cutting salaries Of Govern
ment employees is concerned as a means
of reducing expenses, he said, the saw
ing would not amount to drop IN the
bucket compared to the amount OF
money being expended
Against Salary Cut.
Reduction Of any Government salary
OF $4,000 or less also Is opposed by
Rainey. He emphasizes that II this
group is exempted the proposal SLASH
in Government salaries would not raise
enough revenues to offset the damage
that would result. He insists also that
II there is to be a reduction in salaries
it should apply proportionately to mem
berS OF Congress, Army and Navy ofn-
GERS and all Government ofncialS.
. The new Democratic leader foreseeS
that great damage might be done by
breaking down the structure of Federal
salaries that 1t has taken years to build
UP to something like a living wage and
properly proportioned for those who
have given scientific knowledge, long
experience, technical or mechanical
skill to performance Of the countless In
tricate duties in the Federal service.
ne pOlllLA OuJ IL hONlCC 40
sued by Congress that the Federal pay
roll must go under the ak, then each
and every department, bureau, division,
commission or other unit Of the far
flung Federal service must be made to
bear something like proporionate share
OF the cut-down.
70 Estimates have been submitted to him,
the House leader says, which show that
the utmost to be saved by the proposed
reduction in salaries would be approx
mately $4,000, 900. He expressed the
belief that those interested in reducing
Government expenditures should look
elsewhere.
The Democratic leader gave the first
authoritative forecast Of the Democratic
tax-revision program, in which he in
cIudeS abolition of the capital gains
and loss provision as necessary to reach
those best able to pay increased taxes
. Under the present law the corpora
tions and those receiving big incomes
can avoid payment of taxes through
this provision" the Illinois Democrat
said. ,..s
Opposes Sales Tax. r.
while expressing opposition to gen.
eral sales tax, Rainey said it would be
the most effective way to replenish i'm
mediately the Treasury.
IT do not believe, however, that Con-
tgress will approve a general sales tax, :"
he added. "A luxury tax would not
bring much return now, because people
are not buying luxuries to any great
extent.
"a bond issue would bring immediate
relief to the Treasury, but there is dan
ger in issuing too many bonds. we
need a balanced budget"
Rainey said the wealthy had not
borne their Just share of governmental
costs since the World War, but that
during the present emergency tney
would be called upon to pay more.