Evening star., 1932-04-02
SENATE FAVORABLE
TO TAX MEASURE AS
HOUSE PASSES BILL
Vote of 327 to 81 Is Cast
on Entirely Non-Par-
tiSan Lines.
UPPER BRANCH TO BEGIN
CONSIDERATION TUESDAY
Assurance Given That Troublesome
Sales Levy Issue Will Not
Be Revived.
BY the Associated Press.

BY the Associated Press
The billion-dollar tax bill was
through the House today and dis
patched to the Senate on an over
whelming vote which concluded in
unity three bitter weeks of battling and
stormy debate.
surprising In its rates any revenue
raising proposal drafted in Congress
curing peace time, the bill was an
proved by the House late Yesterday
evening. The Senate. favorablv dis
posed toward it, will begin considera-
tlon early next week in committee
hearings.
Combined with stringent economies
IN appropriations, the bill is designed
to end deficits and place the Govern
ment on a self-supporting basis for the
coming fiscal year. The Democrats
controlling the House expect the bill to
acnleVe this aim, raising an estimated
Sl,O52, 100000, to which they promise
TO add more than S200,o0O,O0 of ap-
preparation cuts.
Still Short Of Deficit.
The Treasury shaves the estimated
yield OF the bill to 1897, 400 900 and cuts
tne possible appropriation reductions to
Sloo,o0O,OOO, thus expecting to fall
short by about $88 900 900 OF eoualing
the anticipated $1,241 ,0OO, 900 deficit
The figures entering all calculations.
however. are estimates subject to
marked change as time passes.
The vote by which the bill went
through was 327 to "a, on entirely non
Democrats and 1872 Republicans. while
81 Democrats and 27 Republicans voted
against it.
ms sweeping victory was preceded
oy lengthy series of roll calls in which
Ine House went down the line for its
leaders, supporting every amendment
brought by the Ways and Means
committee and rejecting one clause
previously written in the bill over com
Hilttee protest: In one vote, however,
tne membership recorded itself. 236 To
l60 against the general sales tax which
was stricken from the bill at the climax
OF the earlier revolt, and which the
committee and the House leaders had
abandoned
In the Senate there is now definite
assurance that the sales tax issue viii
not be revived The bill is expected
70 receive the same strong Republican,
Democratic coalition support which put
through the Reconstruction Finance
Corporation, the credit expansion act
and other units of the bipartisan pro-
gram for economic recovery.
SmOot Preparing Committee.
Chairman Smoot of the Senate FL
nance Committee will assemble his
group Wednesday to begin work He
expects to hold hearings at which
every industry taxed under this bill
already is seeking to be heard, to
renew the vigorous arguments they
made before the House Committee.
Meantime the Democratic Senators have
been called by their leader. Robinson of
Arkansas, to meet next week in parley
which he predicts will record favorable
attitude on the bill
After a conference today with Presi-
dent Hoover, Senator Smoot said he had
expressed the opinion it would take
nearly two week of hearings before the
Senate.
Smoot said he intended to accom-
modate everybody who wished to tes-
tffy upon the bill, but would not allow
20 men to testify on the same point"
The Utah Senator accompanied Gov
ernor Meyer of the Federal Reserve
Board to the Presidents off3ce
A number of changes in the measure
may result, but no wholesale alteration
Is in prospect.
AS drawn. the bill is intended to draw
more than $500, 900, 900 a year in excise
on selected articles chosen with the
Idea OF avoiding everything in the
necessity class so as to place the bur-
den on those considered best able to
pay.
Income, Surtax, corporate and estate
taxes all have been boosted, and sub
stantial levies have been placed on
! EaI f,,A, L.
and on dividends Many administra-
tive changes, altering bases of exemp-
tions, deductions, ETC., are to yield
millions.
Urgency Seen Last Summer.
The bill began to appear necessary
last Summer and Fall when the bad
economic situation showed the Gov
ernment could not meet its tremendous
expenditures out of the revenue sources
then being tapped and indicated that
continued indefinite borrowing would
have grave economic consequences.
The House Ways and Means Com
mittee began study of the Treasury
program for raising about 100000, 900
(then the estimated deficit for 1881
in January. Soon thereafter the deficit
figure went higher, and after two
months of hearings the committee de-
termined upon 225 manufacturers
sales tax as the most suitable basis for
a bill adequate to the emergency.
Against this the House membership
revolted. The sales tax was struck out
and virtually every section coming up
for vote was hacked and altered dur
ing the ensuing demoralized period.
This ended when last Tuesday Speaker
Garner stepped out with vigorous ap-
peal for action to avert financial diSaS-
ter for the country.
Hits Lack. of Cooperation.
After Secretary Mills submitted his
estimates on the expected savings from
Government costs, Speaker Garner told
| newspaper men that IF President Hoo
yer and Mr.. Mills would cooperate We
could reduce expenses $3.50, 900, 900
without the least trouble"
Instead of having that cooperation.
every cabinet member is going over to
the Senate and yowling that we are
running their departments, he said.
How are you going to get anywhere
when that happens? .
II think it Is quite unfair for the
| Treasury to reduce by 80 or 40 per
cent the very estimates it gave to us
couple of months ago. They can't
| be doing that on any basis but the
| belief that the country Is going to be
much worse off. The Treasury ought
at least to figure the country is going
to hold its own. That's one reason
for trying to balance the budget"