Evening star., 1932-05-03
THE EVENING STAR WASHINGTON D. c. TUESDAY MAY 8

manufacturers excise tax was recon-
mended by the House Ways and Means
Committee, and supported by Demo-
cratic and Republican leaders alike,
but was rejected by the House after
acrimonious debate in roll call In
which party lines were entirely oblit-
Grated.
1 have little hope that the Senate
can be induced to vote the manu-
facturerS' excise tax back into the bill
unless it receives assurances that the
House will change its position.
Before leaving the subject of choice
between the manufacturers sales tax
and the nuisance and luxury taxes. let
me call attention to this striking fact
Industry and business, in addition to ar
increased tax on their earnings, in the
pending tax bill are to be burdened
with an increased tax of so per cent on
postage. new tax of over 10 per cent
on kilograms and telephones, and new
tax on checks. The imposition of these
taxes, Is to my mind, far from being the
essential prelude that business vitally
needs for its recovery The adoption OF
a manufacturers sales tax of l per
cent or per cent would eliminate all
these so-called nuisance taxes.
To make up for the rejection Of the
manufacturers sales tax, the House re-
sorted to heavy nuisance and luxury
taxes. Among these, the House bill
provided for increasing the rate of let
ter postage from cents to cents.
Whether the Senate will approve this
proposition is an open question.
MiscaIIed Luxury Taxes.
The House bill carried considerable
list of so-called and frequently mis-
called luxury taxes, taxes on furS and
iewelry, on motor boats and radios,
sporting goods, firearms, toilet articles,
candy, chewing gum, soft drinks and
many other articles, which had proved
sources of revenue in the war days.
The Senate Finance Committee has pro-
posed some changes in these items with
a view to more equitable application OF
these taxes.
It seems certain that the new tax bill
will carry high taxes on some of the
popular products of our prohibition era,
brewers wort and malt Sirup, from
which comes home brew; on grape con-
centrateS and on the bottled waters so
frequently called for in hotels and
restaurants. accompanied by tall glass
and some ice.
An effort will probably be made on
the floor of the Senate to raise as
much as $3.50 900, ,000-the amount re-
uuired-by the authorization of the
manufacture and sale of 275 per cent
beer, with tax upon it.
am in sympathy with this proposal.
I believe it would help to remove many
of the iniquities of the present prohi-
bition system and lessen the untaxed
income of the bootlegging profession.
Unfortunately, there is little probability
that this movement will succeed, be-
cause more than two-thirds of the
membership Of the Senate is still op-
posed to any modification of prohibi-
ton. In addition to the evils which
prohibition is inf1icting upon us, it is
depriving us also of an enormous rev.
enue If the American people insist
upon keeping prohibition, they must
pay the price.
The Treasury proposed the reimpo-
Sition of the wartime tax on automo-
biles, trucks and auto accessories. 1t
proposed rates of 5, and 212 per cent.
respectively. The House bill carried
these taxes at rates Of 3, 2 and l per
cent, and these rates have been ap-
proved by the Senate Finance Com
mittee.
Bank Check Tax.
The Treasury proposed a tax Of 2
cents on bank checks, estimated to pro-
duce SOS 900 900 in revenue. This tax
was not in the House bill. The Senate
Finance Committee has recommended
this tax, exempting, however, all checks
under S5 This taY is substituted in