Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-10-22
Experts Exclude Necessities
and Look to Such Articles
as Autos, Radios and Pos
sibIy Cigarettes.
HOUSE LEADERS IN BOTH
PARTIES DEVISING PLANS
Move for Tax Increase Regardless
Of Hoover Program-Separatc
Studies of Question Made by Gar
ner, Hawley and G. O. P. Group
Headed by Bacharach.

BY the Associated Press
With plans afoot in the House
to increase taxes regardless of
what President Hoover recon-
mendS to the next Congress, the
administration let it be known to-
day that a scheme for selective
sales levies is being considered Of
flcially
With conservative and pro-
greSSive leaders of both political
parties in the House known to be
planning an upward revision of
Federal levieS, experts are busy
hunting for articles that could
best be included. The idea is to
get as much more money as can
be had to counterbalance the
Governments falling revenues,
while avoiding a tax on necessi-
ties as much as possible.
The recommendation formu-
lated at the Treasury will go to
the White House soon. The Presi-
dent has to make up his mind on
what to say about the matter to
Congress.
Representatives Devise Plans.
But regardless of the Chief Ex-
ecutive's position, prominent mem
berS of both parties in the House
where revenue legislation origi-
nates-are intent upon devising
their own plans, it was learned.
The Federal deficit today stood at
above $500, 100000. The constant
swelling OF the deficit has served to
emphasize the attention being given
the problem OF balancing the budget.
Orders for huge cuts Of budget esti-
mates for next year have been acted
upon in the Government departments
Now the concentration is upon finding
means OF bringing in more cash.
Tax experts have considered many
articles and 1t has been definitely de-
oided that no levy can be placed upon
articles of food. rent, fuel or other
necessities. Such articles as automo-
bileS, radios and. perhaps, cigarettes
were considered as logical sources for
bringing in additional revenue.
Taxes on such articles. officials be-
lieve, would largely be absorbed by the
manufacturer and not affect the pur-
chaser.
Autos Formerly Taxed.
Automobiles formerly were taxed.
but the tax was eliminated in the 1926
revenue act over the opposition of
Secretary Of the Treasury Mellon. Elk
perts in going over the field have
looked at the automobile tax from the
standpoint that automobiles use the
roads constructed by the Government
and the States without paying any tax
except a nominal license fee and a
gasoline tax.
They consider that railroads, on the
other hand. were taxed, and that a
tax on automobiles would furnish a
logical basis for raising more revenue.
That the Government must raise
more revenue has been conceded by of
ficials since the 1881 fiscal year con-
cluded with a deficit of 5000 600, 900
and three and half months of the
present fiscal year have produced a
deficit of $617,575,720.
In the last fiscal year there was a
drop of $3.50, 900 900 in income tax and
in the present fiscal year there already
has been a decline of $247, 100000 i'll
income tax collections.
Figures received by the Internal
Revenue Bureau have indicated much
of the income from this tax, which
forms the chief element of the Govern
ment's tax system, has been wiped out
during the business decline.
While the Government faces the
necessity for raising more money, it
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