Evening star., 1932-05-31
Higher Rates on
Incomes Voted
86t tO3.
MILLS CONFERS
WITH SENATORS
Says Revenue Bill
Needs Additional
$285,OOO,O 900.
BY the Associated Press.

!
The Senate made a dramatic
drive for new taxes today as Sec
retary of the Treasury Mills, in a
room just off the chamber, warned
that the Government credit re-
quired that s285, 100000 more be
written into the revenue bill.
Increased income tax rates, pro-
posed by opponents of the sales
tax, were voted, Sc to 3, as the
Senate responded to the appeal
for more funds.
! This added between $7O,0OO0OO
and s100.OOO.OOO to the estimated
total of sS4O, 900. 900 Mills made to-
day. He said the bill must raise
81, ,l25, 100000 to balance the
budget.
In a secret session of the
Finance Committee, the Treasury
chief presented alternative pro-
posalS for raising the S200,000,00O
more. One alternative was the
disputed sales tax, and this recon-
mendation Immediately threw the
committee into argument.
| The alternative advanced by
Mills was a Federal gasoline tax
and a strengthening of the admis-
sions levy.
Committee Withholds Decision.
! This was the first time the ad-
miniStration had recommended
the sales tax, which is still to be
i voted upon in the Senate, but
against which SIS members were
pledged yesterday.
Inc finance Committee withheld any
decision on Mills recommendations OF
new taxes until after it had heard the
message which President Hoover deliv.
cred at noon
One of Secretary Mills recommends
tons was a gasoline tax estimated to
yield S150,000,000. Another was a re-
turn to the lower exemption OF 10
cents on admission that he formerly
| proposed Restoration of the lower ad-
mission exemption, he said would yield
$4,000 900, making a total from the
two proposals of s275.oO0, 900.
Senator Reed, Republican of Penn
sylvania, told the Senate Mills had
very strongly" recommended a sales
tax to the committee.
| The Secretary told the committee, >
said Reed, that it would be accepted
by the country and the world that we
! were putting the tax on broad, firm
base that would make balancing the
budget no longer matter OF doubt"
Atmosphere Tense.
There was a tense atmosphere about
the Senate as the conclusion of the
gruelling tax grind neared. Almost a
complete attendance of the member
ship was on the floor at 10 o'clock. In
/ the gallery sat Mrs. Mills. wife Of the
! Secretary, in the Presidents reserved
. section With her was Representative
Ruth Baker Pratt of New York.
The income tax rates voted today by
the Senate are the highest since the
! close of the war. In addition to apply
ing normal rates of per cent to the
first $4,000 and per cent to income
above $4,000, the schedule eliminates
the allowance in the law for an earned
income deduction.
Income Rates Compared.
The Connally amendment boosting
! the income tax rates was passed shortly
after Secretary Mills had conferred
with the Finance Committee Income
rates previously voted by the Senate
were 8 per cent on the first $4,000,
per cent on the next $4,000 and 9 pei
cent on income above $4,000, with q
maximum surtax of As per cent.
Existing income rates are 112. 3 anc
per cent on these income brackets
respectively, with maximum surtax OF
20 per cent.
Shrinkage in income was blamed by
Mills in his committee testimony fol
the failure of the original estimates tc
meet demands of the Treasury. He
originally had estimated the bill would
raise 1868 900 900 instead Of the $840,
0OO,0 900 he estimated today.
While Mills argued with the Finance
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