The Waterbury Democrat., 1932-03-21
SALES TAX WAS
IN FOR ANOTHER
GREAT BATTLE
Leaders OF Both Parties
Are Trying to Stop the
Rampaging Forces That
Are Wrecking Measure
by PAUL II. MALLON
Omitted Press Staff Correspondent

Washington. March 81 - tUP)
-CUP) -- Leaders of both parties
In the house tried again today to
appease rampaging members who
struck three body blows at the
sales tax and the billion dollar tax
bill and now plan three more.
Acting Chairman Crisp called q
meeting OF the ways and means
committee to work out additional
concessions in an effort to save the
2 Ia per cent sales tax, heart OF
the committees tax program.
The sales tax will be taken up
on the floor tomorrow. Today
leaders brought series of minor
bills before the house, hoping that
delay might cool the militant sales
tax opposition.
A series OF new exemptions pre-
pared for the ways and means
committee by the bipartisan crisp.
Rainey- Hawley leadership would
lift the sales tax from lard and
lard substitutes. sausages. grape
juices for non-alcoholic purposes
Ice cream, matted milk and malt
syrups for bread. With these ex-
emptions, Crisp maintained no
necessary foods would be taxed,
But the insurgent army Is In n
victorious mood. 1t claims the
sales tax Is beaten no matter how
many exemptions are now offered.
Representative Flore1lo ii. La
Guardia. republican from New
York city, Issued bristling at
tack upon the leaders for infer
ring that the sales tax opponents
were progressing toward commun-
ism In the three amendments they
have enacted which would boost
the income tax on the wealthy TO
wartime heights.
"Those who make that charge
have sunk so low that aviation has
not yet discovered an altitude
which would HIT them to the level
of the ground, said La Guard, q
big -shouldered five-footer. ~
hardly think those assertions
should be dignified with an an
swer II was the same spirit
which banned DeKoven's music
during the war"
La Guardia announced he would
introduce three new amendments
TO the tax measure, proposing.
IA tax of Id OF one percent
on stock transactions, with mini
mum levy OF cents q share.
"A graduated increase In es-
tate and gift taxes up to the 90
per cent maximum liked in the
income surtaXes already adopted.
abandonment of the practice
of corporations in consolidating
their returns for Interstate
branches.
In reference TO the last amend
ment, LaGuardia said corpora
lions making big profits in one
state deduct losses they may in
cur through cut prices in other
states. He said abolition of that
system was originally suggested by
Speaker John Garner when the last
tax bill was under consideration.
The sales tax vote probably will
come late Tuesday or "Wednesday.
Crisp is ready to skin minor Sec
lions of the bill in order to get
down to that $500, 100000 hub OF
his whole tax proposal.
If beaten, he has announced he
will withdraw the bill from the
house and take it back to commit
tee for mending. He has said. fur
thermore. that the mending will be
done along the line suggested in
the original tax plan of Secretary
of treasury Ogden Mills, this in
cludes heavy levies on automo-
biles and radios and higher post
age rates.
eNither Crisp nor Majority Floor
Leader Rainey was very optimistic
about chances of success. In pub
lie statements they said they ex-
pected to pull the sales tax
through. But their few remaining
loyal supporters expressed little
hope.
Now they are. as Crisp says
merely plugging ahead doing our
duty as we see It," They hope AT
any rate to prevent repetition OF
the boisterous sessions of Friday
and Saturday when a rampagins
ajority OF the house adopted the
higher income taxes.