Evening star., 1932-12-27
GARNER AND SM0OT
JOIN IN SUPPORT Of
SALES TAX
Utah Senator Proposes to
Exempt Products of
Agriculture.
SPEAKER SEES PROPOSAL
NECESSARY FOR BUDGET
Ways and Means Committee Of
House to Make Survey of
Federal Finances.

BY the Associated Press
Renewed discussion of the advisa bility
OF levying a manufacturers sales tax
sprang up in both the Senate and
House today as the House Ways and
Means Committee laid plans for be-
ginning its study Of the governmental
fiscal situation.
In the Senate the veteran chairman
of the Finance Committee, Smoot Of
Utah, said the sales tax IS the only
means that can be found to balance
the budget.
somewhat similar statement came
from Speaker Garner. He said that il
1t were necessary to pass such a tax
measure I'D do it."
Meanwhile, the House Approximations
Committee tackled the budgetary prob
lem from another angie, Chairman
ByrnS appointing subcommittee to
see what regular annual appropriations
could be Topped of.
Wants Balanced Budget,
SmoOt said he would favor an ex-
emption of farm products as they come
from the farmer in the application of
the sales tax
Garner said that before committing
himself to any tax, if he were a mem
Committee, he would look over the
entire situation, see what l could and
had to do, and then get at it,"
He said he had not changed his
opinion since last session of Congress
when. just after the sales tax was de-
feated, he made speech on the floor
saying, in effect, he would support any
tax needed to make the Federal Gov
ernment's income equal to its expenses.
Asked about Gov. Roosevelt's position
on the sales tax, Garner said he knew
nothing about the President-elect's
stand on the budget EXCEPT that he
wanted balanced budget"
The Ways and Means Committee. at
Gamers instance, plans to begin jan
uary 3 survey of the Governments
financial condition to see what is needed
to balance the budget
Smoot would not predict what SEN
ate Republicans generally would do
about sales tax. but in the past there
has been considerable support in these
ranks for it.
Democrats in the Senate withheld
comment for the present on the state
ment of Chairman Collier of the House
Ways and Means Committee that the
sale tax would probably raise an addi-
tional half billion in revenue.
Hits absurd Rulings"
Smoot said whatever proposal is ad-
vanced should make the exemptions
definite and simple. SO as to avoid what
he termed absurd rulings" under the
present specified manufactures excise
levies.
The Utah Senator added that the
tax would have to be more than l per
cent under present conditions if $780,
100000 was to be raised.
Collier had announced yesterday that
he favored resorting to the sales tax, if
necessary. to balance the budget.
We are going to balance the budget
at this session of Congress if we have
to resort to general sales tax to do
It." asserted the Mississippian. who long
has been an opponent of the legisla-
ton. Collier said he hated the sales
tax like the devil" but frankly I can't
find any other source of revenue to bal
ance the budget"
Collier estimated that in addition to
the revenue to come from the beer bill.
If it is enacted, and payments amount
ing to S329000, 900 from foreign debtors,
about S500000.000 would have to be
raised to make Federal expenditures
meet revenue during the fiscal year
1884. He will lay the whole question
of Federal finances before his commit
tee January 3, he said,
I'll support the sales tax as a last
resort" he emphasized. Il want the
new administration to have clear sheet
March A. I think it would be unjust
pc power se with v tn the Federal &c government l 1eln
running Sl00000000 behind month.
No business, however big. can function
by putting out when nobody is put
Collier said. Il don't think the pres
ent session Of Congress can cut expen-
ditures enough to balance the budget"
and predicted that all of President Hoo
vers proposals for reductions would not
be approved.
Favors Construction Bonds.
Expressing a belief that self-liquidat-
ing Federal construction should be done
by bond issues, and that only the actual
operating expenses Of the Government
should be included in the budget, the
Mississippian said:
Future generations will get as much
out of the buildings as the present, and
We should not pay for them out OF cur
rent income
"I hope that the revenue legislation
we propose will be non-partisan and
want the Republicans to vote for it as
well as the Democrats I also want
to get rid Of as many nuisance taxes
as possible.
Il am going to have the Ways and
Means Committee meet for round
table discussion on the first Tuesday
in January and I am going to put to
them the proposition of balancing this
budget. We've got to raise whatever
revenue Is necessary to keep this Gov
eminent on a sound financial basis
The House defeated the manufac-
turerS' sales tax reported by Golfers
committee last Spring, but the Missis-
sippian said there has been some
change in sentiment and added that
if President Hoover "vetoes the beer bill
we'll have to resort to the sales levy"
Collier said that although his home
State Of Mississippi and probably other
States were adopting the sales levy, I'VE
can't lay of of it just because Of them"