Evening star., 1932-05-08
SALES TAX FIGHT
WILL Be RENEWED
Walsh of Massachusetts viii
Offer Revenue Bill Amend
ment in Senate.
Continued From First Page)

Continued From First PageD
elimination of some Of the special eX.
else taxes and the penalty provisions
carried in the House bill. These pro-
visions are limited deductions CT stock
losses to stock gains in any particular
year in computing the income tax.
In normal times such limitations
would not be so Objectionable as at
present" said Senator Walsh. Owing
to necessitouS conditions in business to-
day it was a prudent action on the
part of the committee to follow the
Treasury's recommendation and elimi-
nate these provisions in the bill. They
would have di5heartened the business
interests of the country seeking TO turn
the corner of depression. We have by
no means turned that corner yet"
Senator Walsh led the fight in the
committee to bring about a compromise
on the normal income tax rates. The
Treasury had recommended 4 per cent
on the first $4,000 and per cent there
after. The House tiIl provided per
cent. 4 per cent and then 7 per cent
as the normal rates. Some Of the mem
bers of the Senate Committee sought to
go back to the wartime rates Of and
II per cent. In the end a compromise
or the normal rates was adopted max
Ing them 3. 6 and per cent. In eX-
listing law the rates are I 2 per cent, 3
per cent and 5 per cent.
Three Main Objections.
Senator Walsh made the point that
the 4 and 8 per cent normal income
tax rates proposed by the Treasury De-
partment would have seriously affected
loa
payers with incomes of $4,000 to $4,000
This class, he pointed out, included a
great number of the home owners of
the country. the men and women who
bear most of the municipal and State
taxes. He said it would be unfair to
lay this great additional burden on
them
There are three main objections to
the bill as its stands" continued Sen
stor Walsh The first objection is to
the high taxes on special industries,
called excise taxes. A 10 per cent tax
on these industries. even if the COM
modities they produce are outside of
the six necessities of life, is ruinous to
these industries.
The second objection lies against
the admission tax. As the bill now
stands, there is a 10 per cent tax on all
tickets of admission above 10 cents.
This means a heavy tax on tickets to
the theaterS, base ball games and other
athletic contests. Such a tax cannCt
be defended in view of the distressed
state of mind of the American people.
They should be encouraged to take a
reasonable amount of recreation and
enjoyment at popular prices.
Tariff Taxes Third.
most serious, lies against the so-called
tariff taxes which are indefensiole and
have no place in a revenue bill They
were inserted through log-rolling meth
ods without relation to merit or the
light Of other commodities to be given
tariff duties. These taxes on lumber,
copper, Gil and coal now in the bill
are there simply because their sup
pofterS were able TO combine enough
Votes In the committee to get faVorao.e
acticn and they will seek favorable
a-tion on the floor OF the Senate in the
same Iog-rolIing manner. A strenuous
light Will be made in the Senate to
eIIrnlnate these tariff taxes. II there
IS need of protection for commodities,
the matter ought to be cared for after
a general study and review Of the tariff
QUESTION, ana not by ranlming into a
revenue bill special group OF tariI
taxes th3t have been secretly planned
and manipulated
l nope We will be able to eliminate
many OF the Objectionable nuisance and
administrative taxes now in the bill
through the adoption Of a manufacture
ers sales tax, limited to two years. 1
am convinced that such a tax would be
much more favorably received by the
people than the taxes now in the bill"
Debate Seen by Wednesday.
Senator Watson, a member of the
Finance Committee, said that Senator
Smoot, chairman of the committee, was
bending every effort to have the bill
ready to report to the Senate tomorrow.
Senator Watson said he believed that
debate on the bill would be begun in
the Senate lot later than Wednesday.
and he predicted that the Senate would
pass the bill after two weeks of con-
sideration. The Finance Committee is
TO meet tomorrow morning to look over
the language Of the bill as finally draft
ed. The members of tie committee ex-
pressed the opinion, however, that the
bill would be reported without further
change.
Other members of the Finance Com
mittee, including Senators Hull of Ten
nessee and Walsh of Massachusetts,.
were more skeptical about the speed
With which the bill would be disposed OF.
They expressed the hope that Senator
Watson was correct in his suggestion
that it could be passed after two weeks
debate. but pointed out that hard fights
were in prospect over the tariff taxes
and other items in the bill Efforts
probably will be made to include in the
bill import taxes also on wood pulp and
manganese and several other commodi-
ties. The committee on Friday voted
into the bill an import tax on rubber.
Members Of the Senate freely ad-
nlitted yesterday that the demand of
the President for prompt action on the
revenue and economy bills was having
its effect and would aid in speeding UP
consideration Of these measures.
Griffin Sponsors Bill.
Representative Griffin. Democrat. Of
New York, a member Of the House Ap-
preparations Committee, yesterday in
troduced a bill to levy an additional
income tax on individuals and corpora
tlons Of l cent on each dollar of gross
incomes for the calendar years 1882,
1888 and 1884. He said that the OBJ
lects Of his bill were Ito 90 away with
doctOring of incomes by paid revenue
experts"
Mr. Griffin said that out Of 1876. $50
individual income tax returns only
1.420877 paid taxes. The rest. he said,
dodged and out Of slc1,812. .529 673
gross incomes, taxes were paid on
cnly s22 5,0666l5, the rest got OF by
deductions and exemptions. II this
provision is written into the law it will
raise revenue amounting to 81 900, 000,-
coo year said Mr.. Griffin This