Evening star., 1932-05-16
Mississippian Declares Bill
as Written Would Restore
Confidence.
IDAHOAN SAYS CRISIS
DEMANDS WAR RATES
Early Vote Expected on Higher In.
come Rates, With Leaders
Predicting Defeat.
BY the Associated Press.

BY the Associated Press.
Senators Borah and Harrison clashed
today in the Senate over demands to
make the income taxes pay the bulk CT
the billion-dollar revenue bill by i'm
position of the wartime rates.
This is war!" shouted Borah-call-
ing for the high 1918 taxes to meet the
needs of a Federal relief program, as
we'll as to balance the budget.
In his f1rsf words on the tax bill as
ranking minority member Of the
Finance Committee, Harrison opposed
the wartime rates and asked for 4
united front for the compromise tax
bill, which raises income taxes to the
highest level since the war.
These are peace times, when there
is no prosperity in the country" he de-
clared
"I can't believe that for us to say
we are going to use the strong arm of
the Government to take II cents of
every dollar you make, that 1t Is going
to encourage the revival Of business and
start the wheels of industry turning
again"
Favors Bill as Written.
"If we could pass this bill as written"
Harrison said, at would do more to re-
store confidence than anything else now
before the Senate.
I'VE can 60 ahead and adopt the
Couzens amendment and other amend
ments, but we feel we have done a
pretty good job in the committee"
Recalling the House battle over the
sales tax, Harrison warned that IF the
Senate doesn't watch out we are going
to get in the same confusion"
Under the bill, he reminded, the tax
rate goes as high as 81 per cent ON large
incomes, in addition to which State in
come taxes as high as Is per cent must
be paid:
said. You, who want to smite the
rich, remember there are things In this
bill that hit them as they were never
hit before"
Among these Harrison mentioned the
increased estate tax and the lower
exemption under it.
Third Day Of Debate.
Borahs speech opened the third day
of debate on the Couzens Amendment,
wrich would levy wartime income tax
rates Of per cent on the first $4,000
and IL per cent on incomes above that
figure, with surtax rates in the high
brackets graduating up to IS per cent.
1T is drastic piece of legislation,
but 1t seems no more so than necessary
to meet the situation" Borah said, his
powerful voice echoing to the corners
of the Senate chamber.
He warned that the demands on the
in the next few months
would be In excess Of anything yet pro-
posed, and pointed to the renewed drive
for Federal unemployment relief.
1T Is necessary that we call on those
who have means to contribute so we
may have means to do some of the
things that ought to be done," he
shouted.
Opposes Relief by Loans.
The Idahoan called attention to the
demands from railroad brotherhood
leaders for relief at the White House
last week and said they were men who
are mot easily disturbed" and not
agitators.
I'VE cannot longer expect local COM
munities to deal with a national situa-
tion which must be handled as a ma
tional problem" he went on.
He shouted opposition to relief
plan founded primarily on loans to
States and cities" saying:
States and cities are under heavy
burden. Loans would be scarcely Sufh-
cient and would pass load beyond the
power of the Government to control"
Furthermore, in some cities, where
suffering is intense, Borah said, I'D
be unwilling to vote a dollar to be
distributed under the class Of officials
they have" He did not name any.
Agrees With Copeland.
Senator Copeland, Democrat, of New
York suggested that the $3.50, 600, 900 to
$500, ,000,0 proposed in the Hoover
compromise relief plan as loans to
States for unemployment would not be
"a drop in the bucket" Borah agreed.
He also said the need was increasing,
and I'VE are just six months late. We
are arriving by freight"
He argued that a balanced budget
would be mere hazard until something
fContinued on Page 2, Column A.