The Waterbury Democrat., 1931-05-04
NEA Service Writer

may cOncelVaDly run close to Dil- lion dollars and insurgent members of congress will lead hot fight to plaster bigger taxes on wealth to meet it. But the dope now is that regular republicans and democrats will cooperate whole -heartedly in staying off any tax increase until after the next election.
 There may be some question whether it is good business to ln- crease taxes at the next session in- stead of having the treasury borrow money. The argument that current expenses should be met from cur rent revenues is met with the con tention that increased taxes would retard the nations economic re- covery.
 But there is no question about the politics of the situation. MT Hoover and MT Mellon, on the one hand, will be kept busy enough explaining that huge deficit without also having to explain tax in. crease. In fact, the avoidance or a tax boost between now and cleo ton time, considering the deficits size, can be made to look rather like triumphant piece Of hscal skill.
 Democrats F1gnt increase.
 On the other hand, the democrats are now trying to attract the sup port of business themselves ana they feel they cant afford to be in any way responsible for tax increase. That, at least, goes for most democrats and for the present party management which represents the ideas and ideas of John J. Raskob. Hence, one finds Pat Har- rison, ranking democrat on the senate finance committee. recom- mending that the deficit be met by diyerting the payments that would ordinarily be applied to retiring the national debt. His statement, Is- sued by the party's national com mittee, points out that the country, thanks to prosperity and past treasury surpluses, is seven years ahead of the debt retirement pro- gram and that it can afford to slow ] up.
 l President Hoover and Secretary Mellon have opposed suspension or payments into the debt sinking fund--amounting to $44l,OOO,ooo this year-and have planned to keep going on short-term treasury borrowings until business picks up and more taxes are turned in.
 But the battle for higher income taxes and estate, inheritance and gift taxes will go on just the same. Various members of congress, fn- cluding Senators Borah of Idaho. Couzens of Michigan and Wheeler of Montana and most recently Congressman Ramseyer of Iowa, have publicly announced their stands for tax boosts. Even that arch-conservative Senator Bingham of Connecticut, has declared for blanket increase in income taxes, although he drew fire from botn the republican politicians who want an increase less than anything and from the progressives who want es- pecially to tax the rich.
 Would Tax Rich More
 Proposals for taxing the higher income brackets and boosting the so -called death taxes are al- ways popular and will gain plenty of support in the near future, es- peciaiIy as their advocates point to the increasing concentration of wealth in the hands of a few. In respect to income taxes 1t Is be- ing pointed out that whereas last year a $2O0,000 income was taxed about $39,OOO in this country 1t was taxed $S6,OO0 in England.
 On the other hand a married taxpayer with two children and a $450O income paid $314 in England, $513 in France and only $2.25 this year in the United States.
 Some students of government argue that with only some 2.600.- 900 persons showing taxable in- come on their return in this country it would be wise to es- tablish a broader base in order to lessen 8 present widespread tndif- ference to federal affairs. Con- gressman Ramseyer points out however, that if we had an estate tax at the British rates the gov ernment would pull in $1,20O.000,- 900 a year instead of the $1SO.0OO,- 900 now collected by both state and federal governments.
 Differ on Deficit
 The divergence of opinion about