The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1932-04-02
SENATE GUNS
ARE TRAINED
ON TAX BILL
New Attacks Face Revenue
Measure Passed by
House 327 to 81.
SALES LEVY PROPOSED
Garner Angered by Mills
Claim Yield Is Inadequate
to Wipe Out Deficit.
BY MARSHALL M'NEIL
Times staff Correspondent


WASHINGTON, April 1.-THE tax
fight shifted to the senate today
with proposals to increase surtaxes
on the great incomes and to kill
the oil and coal tariffs as out
standing issues.
Even before the billion dollar
revenue bill is sent there from the
house which passed it late Friday,
the field of senate controversy
fairly is we'll defined.
An effort will be made to rein
sert the sales tax in the bill.
There will be a fight on the Spe-
cial leniency provision given estates
of persons who died recently.
The new levy on dividends will be
opposed, as will the taxes on autos,
conveyanceS and stock transfers.
The postage increase also is a
controversial issue.
Senate finance committee hear
ings on the bill are to start next
week.
High SurtaxeS Killed
The house passed the bill, 327 to
81, after striking out at the last
moment the higher surfaces on the
rich, which had been voted in to re-
place the mild levies proposed by
the ways and means committee.
These surtaxes, affecting the in
comes of the big Republican and
Democratic campaign contributors
and other rich persons, were ap-
proved when the house was sitting
as a committee ten days ago.
But between then and Friday
strong opposition arose, and on a
record vote, the SurtaXeS were ousted
by a vote of Oil to 178. Party lines
were broken on the roll call.
Sales Tax Fails Again
The effort to re-insert the sales
tax failed 235 to $50, with Repub-
Leans forming the backbone Of the
attempt.
The oil and coal tar-tariffs we're
retained, 204 to 1885,
The bill as finally approved, is
expected to yield 1892, 100000, in
Guiding $2OOOOO,OOO reductions in
federal expenditures.
This is 21,9OO,OO0 in excess of the
$1,241, 100000 said to be needed to
balance the budget in the fiscal year
1888. These are the estimates of
the ways and means committee.
Estimates of Treasury Secretary
Ogden L. Mills are that the bill, as
finally approved by the house, will
yield 81, 152,90O,O00, but this includes
only $125,000.0O0 reductions in fed
eral expenditures. This sum is $685.
100000 less than enough to balance
the budget.
Not Enough Mills Says
Mills attempt to show that the
Democratic house with its special
excise taxes had not provided
enough revenue to balance the
budget came as the house met
Friday.
simultaneously the ways and
means committee reported an
amendment taxing stock dividends
as income, to yield $S8,0OO,OOO.
The secretary'S statement that
the congress would reduce expep5&-
lures by only SIPS, 100000 as COM
pared to the promised 100000 900
to $243, 100000, caused Garner to
explode with denunciations of all
treasury estimates.
Administration Flayed
He charged that when the treas
ury favored a new. tax it figured the
yield high, and when it opposed a
new tax, it figured the yield very
low.
Beating loud tattoo on his desk,
Garner told newspaper reporters
that if the administration would
cooperate the governments ex-
penditureS easily could be cut.
He accused cabinet officers of
running to the senate with cries
that you are running the govern
ment," and demanding increases in
appropriations after reductions had
been made in the house. He de-
cIared the congress should, could
and will reduce expenditures.