The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1932-03-11

La Guardia Predicts Defeat
and Maps Substitute
for Measure.
SPEAKER GARNER MUM
Levy Is Denounced by Fiery
New Yorker as Unjust
to Poor Man.
By United Press

By United Press
WASHINGTON, March 11.-Rep-
resentative Fiorello H. La Guardia
(Rep., N. " announced today that
liberal group in the house had
organized to fight the 1896. OOO. 900
sales tax proposed in the new reve-
nue. bill.
La Guardia predicted defeat of the
sales tax and formulated a substi-
tute for it.
1T is my opinion, after personal
conferences with my colleagues in
the house, that the sales tax fea-
ture will be eliminated from the
BILL, the New Yorker declared. aft
er very careful consideration of the
bill, I can state on behalf of the
progressives, that they all are OPP
posed to the sales tax
Speaker Garner declined to dis
cuSS the opposition organized by
La Guardia. He said, however. that
the main thing is to balance the
budget and indicated if some other
way might prove more acceptable,
he might consider it in event of
heavy opposition. He would not
venture prediction as to whether
the house would pass the bill as it
stands.
Has RalIying Ability
The progressive group which La
Guardia dominates in the house
numbers only small group in each
party, but the little New Yorker
has a way of rallying support to
his causes. He will have the sup
port of many Democrats who have
announced their opposition to the
sales tax.
He said he would announce later
today his substitute program de-
signed to raise about $40O,000,00
Revenue from the manufacturers
tax is estimated at $500 100000. His
program thus will fall somewhat
short of the amount which the
treasury said is necessary to bal
ance the budget. Luxury taxes will
be included, the New Yorker said,
but he declined to reveal any fur
Their details.
La Guardia said he would submit
his program to the Democratic
house leadership before making it
public, giving them an opportunity
to approve it. If they do not, he
will seek to substantiate it on the
floor when the house takes up the
measure item by item next week.
nenOunceS Sales Tax
Announcing his intentions just
before the house began the second
day Of debate on the $1,096,O 100000
bill, La Guardia denounced the
sales tax in no uncertain terms.
For nearly twenty years, there
have been attempts to saddle this
sales tax on the people of the
country he said. ITO say that it
is an equitable tax simply is ridic-
ulous."
A family spending $1,000 for sus-
tenance and existence, exempting
the mercy of bread which is so
generously bestowed in the bill, will
mean that family will pay $22.50.
That is out of all proportion even
compared with the gentleman who
diets on caviar and pate de foie
gras."
Drafts Another Bill
Another substitute program is be-
ing drafted by Representative
Doughton Dem, N. c., member Of
the ways and means committee, who
is opposed to the manufactures
sales tax.
His tentative schedule calls for an
excess profits tax to produce $685.
100000; luxury taxes to bring in
$125, 100000; increase of postal rates
to raise $125,000,000.
This makes total of S419,OOo.-
600. Doughton said the treasury
estimates were $100,0O0,000 too low
on the bill and figured a further
$10O,O00,000 in the budget, which
would afford, with his program, a
total of S618,00O,00O to close the gap
left by elimination of the $685., 000-
900 manufactures sales tax.
His proposed luxury taxes would
include furs, jewelry, cosmetics, suits
costing over $40, shoes and hats